The London Stock Exchange announced today plans to improve trading in mid-cap securities with the creation of a new hybrid market segment that aims to combine the benefits of the SETS electronic order book with those of market making.
SETSmm, will be a new trading service for FTSE-250 securities currently traded on SEAQ, and other qualifying SEAQ securities. It will be an electronic order book based on SETS with the added support of continuous liquidity provision from committed market makers. The idea is to combine the best of the Exchange’s SETS and SEAQ trading services.
“SETSmm will increase the number of securities traded on SETS,” says Clara Furse, Chief Executive at the London Stock Exchange. “The benefits will include tighter spreads, lower transaction costs, greater transparency and improved liquidity for the FTSE 250 stocks.”
The Exchange is aiming to launch SETSmm in September 2003.