Statement just published here and reported by our friends at Livesquawk
London Stock Exchange today announces that it will be introducing a new intraday auction for all SETS equities, the largest and most liquid shares traded on its markets. During the two minute auction, which will take place at 12.00 every day, continuous trading of shares will be paused on London Stock Exchange.
Brian Schwieger, Head of Equities, London Stock Exchange said:
This is a very significant change to the trading day, following a detailed consultation with market participants. The introduction of the intraday auction is in direct response to demand from buy-side participants for neutral, infrastructure-led solutions for trading in large blocks. The auction will allow participants to place orders in a truly confidential, yet price-forming environment via a well understood mechanism.
The 12.00 timing is based on market feedback, matching the current intraday auction in Germany. We are aware that institutional investors hope it will encourage European markets to follow suit, creating over time a significant and harmonised pan-European focus for liquidity at midday across the continent.
The intraday auction will go live in late 2015, giving market participants opportunity to update and reconfigure their own systems. As with the current opening and closing auction, there will be no additional fee or extra direct cost imposed on customers in order to take part in the auction. The auction will apply to all SETS equity securities.
The ForeLive info service just keeps on giving.
Right, back to the more important matters in hand!
