Exchange's electronic trading system losing market share
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Sets, the Stock Exchange's new electronic trading system, is losing market share, according to figures released yesterday.
But Gavin Casey, the Exchange's chief executive, believes the introduction of Sets has been a success. "It's gone very well ... the feedback we've been getting is very good," he said.
In the month following launch on 20 October, Sets' share of all FTSE trades averaged 36 per cent. But, in recent weeks, Sets has been losing ground. In the three months since launch, Sets' market share averaged just 32 per cent
Sets, although regarded as a technical success, has been subject to criticism from commentators, smaller stockbrokers, and private investors.
The new system has led to illiquidity at the beginning and the end of the day, meaning investors trading at these times risk receiving unfavourable prices for their shares. The illiquidity has also caused "rogue" or unrepresentative closing prices.
Sets has also been criticised for facilitating market abuse. Last year, two JP Morgan traders succeeded in manipulating the FTSE 100, earning their employer a record pounds 350,000 fine.
"There are things we need to work on", admitted Mr Casey yesterday.
The Exchange chief said shorter opening hours were one option, with the Exchange possibly closing at 4.10pm, the same time as LIFFE, the futures and options exchange. Other options include introducing a "closing auction". This could help stamp out rogue closing prices, but would not solve the problem of early morning illiquidity.
Mr Casey confirmed the Exchange was still planning to extend the new order book to cover FTSE 250 stocks. But other, smaller, stocks would not go on to Sets.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments