CHAPTER 3 Flashcards
Multilateral Trading Facility (MTF)
system or service that brings together multiple parties interested in buying the same thing especially those without an official market
Organised Trading Facility (OTF)
not a regulated market or MTF
Bonds and derivatives only
allows more transparency
Recognised Investment Exchange (RIE)
Based In UK and recognized by FCA
Recognised Oversea Investment Exchange (ROIE)
Based outside UK but recognized by FCA e.g. NASDAQ
Designated Investment Exchange (DIE)
Overseas exchange that does not conduct regulated activity in the UK and is not a regulated market
Order Driven System
NO MARKET MAKERS
exchange has a matching system
stays anonymous
Liquid products
Quote Driven System
Market makers produce 2 way prices for each product
approach market maker to trade
buyer and seller are known to each other
Illiquid products
Hybrid Systems
offer both order and quote
fulfilled through a queue but market makers exist to guarantee trade execution
4 LSE trading Systems
SETS (hybrid)
SETSqx (hybrid)
SEAQ (quote driven)
Order book for Retail Bonds (hybrid)
Other Optional LSE Systems
Regulatory news Service (RNS)
Corporate Events Diary
SEDOL Masterfile
European Regulatory Trade Reporting
Participant Services
In House Development
Data Exchange Specifications
Data dictionaries
Data Security Standards
Service Level Standards
Testing Facilities
Packages
Many Member firms do not build their own trading system so they implement packages to allow front to back solution for firms
helps for all activities to be on the same system
better for smaller companies
Funds Platforms
used by wealth managers and intermediaries and investors to manage portfolio
supports a wide range of instruments
provides onestop shop
Clearing Houses
