London Stock Exchange
London Stock Exchange
Stock Exchange London, England, United Kingdom
Coordinates Founded Owner Key people Currency No. of listings MarketCap Volume
1801 London Stock Exchange Group Christopher S. Gibson-Smith, (Chairman) Xavier Rolet, (CEO) GBX 2,966 (Dec 2010) US$3.6 trillion (Dec 2010) US$1.7 trillion (Dec 2009) FTSE 100 Index
FTSE 250 Index FTSE 350 Index FTSE SmallCap Index
6 The Exchange during the First World War o 1.8 The Big Bang and the Modern Market 2 Activities o 2.1 Coffee House o 1.com
The London Stock Exchange is a stock exchange located in the City of London. England.2 Royal Exchange o 1.5 The Exchange before the World Wars o 1.6 trillion. within the United Kingdom. As of December 2010.7 The Exchange during the Second World War o 1.FTSE All-Share Index Website londonstockexchange.2 Secondary Markets 3 Information Services 4 Post Trade 5 Technology o 5.1 Primary Markets o 2. The Exchange is part of the London Stock Exchange Group. the Exchange had a market capitalization of US$3. The Exchange was founded in 1801 and its current premises are situated in Paternoster Square close to St Paul's Cathedral in the City of London.1 Technology Issues
.4 Foreign and Regional Exchanges o 1. making it the fourth-largest stock exchange in the world by this measurement (and the largest in Europe).\
1 History o 1.3 First Rule Book o 1.
2. the royal court also raised some monies.
6 M&A Activity o 6. They had to operate from other establishments in the vicinity. these were known as "by inch of candle" auctions. stockbrokers were not allowed in the Royal Exchange due to their rude manners. notably Jonathan's Coffee-House. with new companies joining to raise capital. which had teething problems in the
.2. Public auctions during this period were conducted for the duration that a length of tallow candle could burn. At that coffee house.1 Opening Hours o 10.2.2 TMX bid 10 Others o 10. as a stock exchange. This was the birth of a regulated stock market. coal and paper in 1698. a broker named John Casting started listing the prices of a few commodities.
After Gresham's Royal Exchange building was destroyed in the Great Fire of London.2 MTS o 6. Originally.1 Nasdaq Bids o 9. it was rebuilt and re-established in 1669. It was opened by Elizabeth I in 1571. This list and activity was later moved to Garraway’s coffee house. These are the earliest evidence of organised trading in marketable securities in London. This was a move away from coffee houses and a step towards the modern model of stock exchange. exchange rates and certain key provisions such as salt.2 Occupy London 10.3 Turquoise 7 EDX 8 MIT 9 Others o 9. The Royal Exchange not only housed brokers but also merchants and merchandise. As stocks grew.3 Main Figures 11 See also 12 References 13 Further reading 14 External links
The Royal Exchange had been founded by Thomas Gresham on the model of the Antwerp Bourse.1 Borsa Italiana o 6. this was not a daily list and was only published a few days of the week. During the 17th century.1 IRA Bombing 10.2 Miscellaneous 10.
which later became the foundation of the first codified rule book of the Exchange. In spite of continuous criticism from newspapers and the public. Even though the document was not a complex one. This invariably led to several problems of its own. Parliament brought out an act in 1697 that levied heavy penalties. a plan for a new and bigger building was in development. In order to regulate these. formed a club and opened a new and more formal "Stock Exchange" in Sweeting’s Alley. In 1773. After the Seven Years War (1756–1763). which was later increased as the size of the trade grew. the transformation was not welcomed by all parties. In February 1812. On the first day of trading. the solution came in the form of annual fees and turning the Exchange into a Stock Subscription room. which was also just as much as on board level. It was finished on 30 December when “The Stock Exchange” was incised on the houses’ orthodox entrance. topics as settlement and default were. The site for the new Exchange was set to Capel Court. on several occasions there was a clear set of regulations or fundamental laws missing for the Capel Court trading. either by their own virtues or through expulsion and had started dealing in the streets of London. the General Purpose Committee confirmed a set of recommendations. Jonathan.
. the government used the Exchange's organised market (and would most likely not have managed without) to raise the enormous amount of money in the wars against Napoleon. Parliament naturally tried to regulate this and disband the rogue traders from the Change streets. trade at Jonathan's Coffee house was once again booming. quite comprehensive. It was this that eventually gave rise to the expression of a Stock Exchange. Companies became weary of "bubbles" when companies rose quickly and fell. in fact. through which traders could enter the stock room and trade securities.shape of unlicensed brokers.
First Rule Book
In the Exchange's first operating years. This was not met well and ultimately. It also set a fixed number of brokers (at 100). both financial and physical to those brokering without a licence. the Exchange was progressively becoming an accepted part of the financial life in the City. together with 150 other brokers. it was suggested that users of the stock room pay an increased fee. With its new governmental commandments and increasing trading volume in place. In spite of the disorder. as trading also occurred in the Rotunda of the Bank of England. William Hammond laid the first foundation stone for the new building on 18 May. one of which was that the traders had started leaving the Royal Exchange. so they persuaded Parliament to pass a clause preventing "unchartered" companies from forming. It was. not an exclusive location for trading. This now had a set entrance fee. non-members had to be expelled by a Constable. The street in which they were now dealing was known as 'Change or Exchange Alley' which was suitably placed close to the Bank of England. Fraud was also rife during these times and in order to deter such dealings. Although the new Subscription room created in 1801 now was the first regulated exchange in London. however.
foreign lending to countries such as Brazil. Just as London enjoyed its international growth forthcoming. namely Liverpool and Manchester. almost a thousand members quit the
. Some stocks soared by some 10. prices surged due to a rising fear that both borrowed money was to be called back and foreign banks would demand their loans or raise interest. in 1836. These new technologies lead to a true revolution in the work of the Exchange. as transactions were to be in cash only. The everincreasing of overseas business meant eventually the dealing in foreign securities had to be allowed within all of the Exchange's premises. introducing again street business as well as on the “challenge system”. Notably. Two other cities were particularly showing great business development. a week. Due to the limitations and challenges on trading brought by the war. Thomas Allason was appointed as the main architect. 20 and 30 pct. ticker-tape and the telegraph had been invented. Consequently. By the mid 1800’s. both the Manchester and Liverpool Stock Exchanges were opened. the Foreign Market at the Exchange allowed for merchants and traders to participate as well and The Royal Exchange hosted all transactions where foreign parties were involved. These where also times when stockbroking was considered a real business profession and such attracted many entrepreneurs. Despite being linked to all major cities domestically in the 1840s. both the City and the Stock Exchange were hit hard by the outbreak of the First World War in 1914. was hurried through by the Committee and Parliament. respectively. also followed by a second one two years later. This was a huge improvement of both surroundings and space. The decision of closing the Exchange for improved breathing space and extension of the August Bank Holiday to prohibit a run on banks. Managers at the Exchange were initially unconvinced of the telephone’s benefits and it was not installed before 1878. both participating members and brokers were taking up so much space that the Exchange was now uncomfortably crowded and continual expansion plans were taking place. and in 1835 the “Spanish panic” hit the markets. The Stock Exchange ended up being closed from the end of July until the New Year. with twice the floor space available. with booms came busts.
The Exchange during the First World War
Being the financial centre of the world. and in March 1854 the new brick building inspired from the Great Exhibition stood ready. the telephone. Peru and Chile were a growing market. east and northwards. The managers eventually gave in and the telephone soon became one of the most vital stockbroking tools.Foreign and Regional Exchanges
After the war and facing a booming world economy. At first. the domestic Great Britain also benefited from the economic boom. Nevertheless. it was then decided the Exchange needed an entire new establishment. Much of the concerns pertained to whether business would be attracted or diverted away with the new equipment.
The Exchange before the World Wars
By June 1853. The Exchange was set to open again on the 4th of January 1915 under tedious restrictions. Being already extended west.
and middle floors let out to affiliate companies. Eventually. never took place. the post-war mood on the trading floor was generally cowed. with its 23. customer and user base. in March the London Stock Exchange was to (formally) amalgamate with the 11 British and Irish regional exchanges. The Exchange’s floor was hit by a clutch of incendiaries. was given to Robert Fell. experiences from the First World War made officials at the Exchange draw up plans on how to handle a new war situation. and the finalized building was now a new City landmark. Firstly. This turned out to be one of the most useful indices of all and tracked the movements of the 100 leading companies listed on the Exchange.18. 1973 marked the year of changes for the Stock Exchange. This however. and one suggestion was a move to Denham.
. This pushed the officials to find a more suitable space for its new accommodation. Trading on the floor was now drastically low and most was done over the phone to reduce the possibility of injuries. A report from the Monopolies Commission recommended the admittance of both women and foreign-born members on the floor. The work on the new Stock Exchange Tower began in 1967. the declaration of war was signed. the stock market enjoyed some remarkable years in the late 1950s and business was indeed booming. This also marked the first time the trading name became 'The London Stock Exchange'. in 1945 due to damage from a V2 rocket. As the war escalated into its second year. the concerns for air raids were greater than ever. when the governing Council of the Exchange was replaced with a Board of Directors drawn from the Exchange’s executive. When peace time finally returned in November 1918.Exchange between 1914 . with the motto “Dictum Meum Pactum”. the Exchange closed its doors “until further notice” and two days later.
The Exchange during the Second World War
In 1937. My Word is My Bond. on the 7th of September.
The Big Bang and the Modern Market
After some turbulent times. Unlike from the prior war. two trading prohibitions were to be abolished. One of the main concerns were airraids and the subsequent bombing of the Exchange's perimeters.000 sq ft trading floor. This expansion led to the creation of a new position of Chief Executive Officer. FTSE 100 Index (Footsie 100) was launched by the Financial Times and Stock Exchange partnership in February 1984. which fortunately was extinguished quickly. where trading continued in the house’s basement. And secondly. Governmental changes also continued in 1991. who after extensive search. Queen Elizabeth II opened the building on 8 November 1972. In 1923 the Exchange received its own Coat of Arms. on the night of 29 December 1940 one of the greatest fires in London’s history took place. the Exchange opened its doors again six days later. The Exchange’s new 321 feet high house had 26 storeys with Council and Administration at the top. The Exchange was in fact only closed for only one more day during wartime. On the first day of September 1939.
Issuer services help companies from around the world to join the London equity market in order to gain access to capital. In 2004 the Exchange opened a Hong Kong Office and has attracted more than 200 companies from the Asia-Pacific region. The LSE allows company to raise money. The Group operates out of the Stock Exchange's headquarters in Paternoster Square. bringing greater speed and efficiency to the market. Thus. For the biggest companies exists the Premium Listed Main Market. On the year of the new millennium. thus following the firms throughout the whole IPO process. The Exchange also acquired Proquote Limited. In 2007 The London Stock Exchange merged with Borsa Italiana. increase their profile and obtain a market valuation through a variety of routes. The London Stock Exchange runs several markets for listing. The phrase Big Bang was coined to describe measures including abolition of fixed commission charges and of the distinction between stockjobbers and stockbrokers on the London Stock Exchange. depositary receipts and debt. Following this. International companies can list a number of products in London including shares.The biggest happening of the 1980s was the sudden deregulation of the financial markets in the UK in 1986. a new generation supplier of real-time market data and trading systems. in 2004. giving an opportunity for different sized companies to list. a new international equity derivatives business. This operates a Super Equivalence method where conditions of both the UK Listing Authority as well as London Stock Exchange’s own criteria have to be met. was created in 2003 in partnership with OM Group. the AIM. to allow growing companies to expand to international markets. The largest IPO (Initial Publical Offering) on the Exchange was completed in May 2011 by Glencore
. Two years later the Electronic Trading Service (SETS) was launched. offering different and cost-effective ways to raise capital. The LSE also transferred its role as UK Listing Authority to the Financial Services Authority (FSA. which deregulated many of the Stock Exchange's activities as it enabled an increased use of computerized systems that allowed dealing rooms to take precedence over face to face trading. as well as change from an open-outcry to electronic. The old Stock Exchange Tower became largely redundant with the advent of the Big Bang. the House moved to a brand new headquarters in Paternoster Square. the CREST settlement service was also launched. screen-based trading. creating the London Stock Exchange Group (LSEG). the Exchange's shareholders voted to become a public limited company: London Stock Exchange plc. 2000. In 1995 The Exchange launched the Alternative Investment Market.UKLA) EDX London. close to St Paul's Cathedral.
International plc.Structured Products . 108 Eurobonds and over 350 Medium Term Notes. Over the past 10 years over £366 billion has been raised through new and further issues by Main Market companies.Both broadening the shareholder base and creating a market for the company’s share . it operates the Depository Receipt (DR) scheme as a way of listing and raising capital. Amongst the benefits of joining one of the Exchanges markets are: . For international companies that fall outside of the EU.Retail Bonds .Ordinary Shares . Specialist Fund Market Is the London Stock Exchange dedicated market.Exchange Traded Funds . governance models and security.Global Depositary Receipts (GDRs) There are two main markets on which companies trade on the LSE:
The home to some of the most well-established.Bonds .
Alternative Investment Market (“AIM”)
. The FTSE 100 Index (“footsie”) is the main share index of the 100 most highly capitalised UK companies listed on the Main Market. The company raised $10bn at admission.Placing an objective market value on the company’s business There are also two specialised markets: Professional Securities Market This market facilitates the raising of capital through the issue of specialist debt securities or depositary receipts (DRs) to professional investors. It is suitable only for institutional. Over 1.Providing access to capital for growth and raise finance for further development .Exchange Traded Commodities . The Specialist Fund Market is an EU Regulated Market and thus securities admitted to the market are eligible for most investor mandates providing a pool of liquidity for issuers admitted to the market
The securities available for trading on the London Stock Exchange are: .Covered Warrants . professional and highly knowledgeable investors. making it one of the largest IPO ever. The market operates under the status as a Recognised Investment Exchange. designed to accept more sophisticated fund vehicles. largest and recognized companies in the world. and by July 2011 it had 32 DRs. In terms of smaller SME’s the Stock Exchange operates the Alternative Investment Market (AIM).300 companies from 60 different countries enjoy the balanced and globally-respected standards of regulation and corporate governance that the London Stock Exchange offers.
The trading of derivatives products is also available on the Turquoise platform (ex EDX London). Russian futures and options on the most liquid IOB Depositary Receipts. Exchange Trading Products as well as other liquid AIM.European Quoting Service: the European Quoting Service is a service that enables clients to meet their pre-trade pan-European transparency obligations.SEAQ SEAQ is the London Stock Exchange’s non-electronically executable quotation service that allows market makers to quote prices in AIM securities and the Fixed Interest market. Asia and the Middle East via depositary receipts (DRs). trading indexed securities (FTSE100. FTSE250. It is based on an electronic order book similar to SETS. Futures and options on the FTSE RIOB index as well as futures on the FTSE 100. . for example. . There are also several electronic platforms on which the different products trade. . Futures and options on the most liquid European stock underlyings as well as on European benchmark indices are expected to be launched in Q4 2011 and Q1 2012 subject to FSA approval. This platform combines a periodic electronic auction book four times a day with standalone non-electronic quote driven market making. The available products are Norwegian Futures and options on Norwegian single stocks and indices.SETSqx (Stock Exchange electronic Trading Services – quotes and crosses) SETSqx is a trading platform for securities less liquid than those traded on SETS.A pan-European trade reporting service that enables clients to meet their post-trade reporting obligations whether trading on or off Exchange.
International Trading Service
. . Irish and London Standard listed securities) .
. FTSE Small Cap Index constituents.The London Stock Exchange’s international market for smaller growing companies. in Central and Eastern Europe. The AIM falls within the classification of a Multilateral Trading Facility (MTF) as defined under the MiFID directive in 2004.SETS (Stock Exchange electronic Trading Service) SETS is the London Stock Exchange’s flagship electronic order book. Exchange Traded Funds.IOB: The International Order Book offers easy and cost efficient access for traders looking to invest in fast growing economies. venture capital backed as well as more established companies join AIM seeking access to growth capital. A wide range of businesses including early stage. and such is a flexible market with a simpler admission process for companies wanting to be publicly listed.
net total of £10.
. This is by increasing the availability of publication on offer.MTS BondVision (Dealer to Client electronic market) . even for non-bank smaller firms seeking to raise capital.MTS Indices. validation and reconciliations. 2009 saw highest ever inflow into bond funds. Shareholding firms also include large international banks such as J. MTS provides access to both cash and repo markets as well as fixed income market data and fixed income indices. detailing the risks and benefits involved in Retail Bonds.MTS Cash . simplicity of transaction charging and standardisation of market structure.MTS (Mercato Telematico di Stato) MTS is a fixed income trading electronic platform. this inflow driven almost entirely by retail investors (90% of total). The key aim of ORB is to increase distribution for bonds by opening up these markets to private investors who may have previously felt excluded from this market.P. Feeds are also available through providers such as Bloomberg and Thomson Reuters.
The LSE supply its participants with real time prices and trading data creating the transparency and liquidity through several services. such as Places for People who were able to raise capital of £140 Million. This portrays the advantage using ORB can have. ORB acts as an electronic secondary market for retail investors. Some of the products and references provided by the London Stock Exchange are:
Unavista – LSE’s business solution for Post-Trade Services. New entrants into ORB have been able to raise sufficient funds. corporate bonds. It offers customers a global hosted platform for integrating matching. such as taxation. the Order book for Retail Bonds (ORB) offers continuous two-way pricing for trading in UK gilts and retail-size corporate bonds onexchange. The drive in Retail Bonds is being driven by cost-effectiveness. Currently there are five dedicated market makers committed to quoting two-way prices in a range of retail bonds throughout the trading day. New market models means private investors will be able to see prices on-screen and trade in bonds in a similar way as they currently do for shares. ORB offers an open and transparent market model for trading in retail-size. covered bonds and repo. ORB Launched on 1 February 2010.
The largest products offered are:
. This creates a greater efficiency of electronic on-book execution and option to use straight-through-processing to settlement system.7bn. It is majority owned by the London Stock Exchange Group. Data Solutions and Reconciliations.MTS Repo MTS Credit (for euro-denominated non government bonds) .MTS Data . Morgan. with corporate bonds being the best-selling sector. trading European government bonds. Deutsche Bank or BNP Paribas. quasi-government bonds.
CC&G is the Groups Central Counterparty (CCP) and covers multiple asset classes throughout the Italian equity. For Microsoft. MT operates both on-exchange and OTC trades with over 400 banks and brokers. was taken out of service following a 2-hour outage of the Turquoise venue on 2 November.
RNS – Regulatory News Service is both a regulatory and financial communications channel for companies to communicate with the professional investor. a Sri Lankan IT company bought by the LSE in 2009. The system. Millennium's product base include Smart Order Routers (SOR). Euronext as well as the London Metal Exchange. custody and asset services provider of the Group. Monte Titoli (MT) is the pre-settlement. In October 2010. had smashed the world record for trade speed.
The trades conducted on the LSE are cleared on LCH. according to LSE officials. Microsoft used the LSE software as an example of the supposed superiority of Windows over Linux in the "Get the Facts" campaign. surveillance. settlement. with 126 microsecond trading times being recorded on the Turquoise dark pool trading venue and would go live on 1 November. The London Stock Exchange Group acquired MillenniumIT (MIT) in October 2009. the London Stock Exchange Group as a whole offers clearing and settlement services for trades through CC&G (Cassa di Compensazione e Garanzia) and Monte Titoli. CC&G also clears Turquoise derivatives. caused by human error that "may have occurred in suspicious circumstances. the London Stock Exchange announced that the new Linux based trading system. was developed by Microsoft and Accenture. Proquote – the London Stock Exchange’s data provider and information display system.
The old trading platform was based on Microsoft's .
The LSE's current trading platform is its own Linux-based edition created by Millennium IT. claiming that the LSE system provided "five nines" reliability.NET Framework. which is mutually owned by some banks. Borsa Italiana. derivatives and bond markets. Through the Exchange's Italian arm. clearing and CSD Products. It offers both Pre and Post trade Execution Monitoring and Analysis tools. The incident was.000 announcements are processed by RNS each year. named Millennium Exchange. LSE was a good combination of a highly visible exchange and yet a relatively modest IT problem."
.Clearnet. and has since then enjoyed both its expertise and performance enhancements it has brought with it. Around 175. After suffering extended downtime and unreliability  the LSE announced in 2009 that it was planning to switch to Linux in 2010. which was developed by MillenniumIT.
up five per cent (H1 FY 2010 8.2 million). once a monopoly. On an organic basis and at constant currency all segments except Capital Markets delivered increased revenues Operating expenses1 down eight per cent at £165. with an 11 per cent increase in adjusted earnings per share Significant progress achieved in delivering Group strategy to transform business.0 million). The LSE stated it was hoping the software would be ready for use again early in 2011.2 pence (H1 FY 2010: 29.4 million) Basic EPS up 25 per cent at 23. customers experiencing world beating average latency and performance.2 million (H1 FY 2010: £79.2 million) Adjusted operating profit1 up 15 per cent at £154.8 million) Profit before tax up 26 per cent at £100. including roll out of new high performance trading system and a range of product initiatives including plans for trading equity derivatives on Turquoise in the second quarter of 2011 Financial Headlines: Total income up one percent at £318.8 pence per share. other cash equity markets to follow.0 pence) Interim dividend of 8. adjusted net debt down £85 million in the period to £442 million 1 before amortisation of purchased intangibles and exceptional items All comparisons are against the same corresponding period in the previous year unless stated otherwise
Operational Headlines: Roll out of Group's new MillenniumIT technology platform .5 pence) and adjusted basic EPS up eleven per cent at 32. In February 2011.9 million (H1 FY2010: £301.2 million (H1 FY 2010: £180. LSE chief executive Xavier Rolet insisted that the exchange.8 million (H1 FY 2010: £134.
.4 pence per share) Strong net cash inflow from operating activities of £144 million. the London Stock Exchange finished the switch to Linux.4 million (H1 FY 2010: £314.2 pence (H1 FY 2010: 18. Revenue of £297. would deliver record speed and stable trading in order to fight back against the fast erosion of its dominant marketshare by specialist electronic rivals. down one per cent.
London Stock Exchange Group interim results for the six months ended 30 September 2010
Good financial performance reflecting diversified Group business.Plans were to introduce Millennium Exchange also on the main share trading platform in December.Turquoise live.
Technology Services and our Information Services businesses also delivered increased revenues in the period.
Technology Services performed well. average daily equity trades in Italy down five per cent over the same period last year. "We continue to make real strides in transforming the Group and in particular this half we began to roll out our new.
Number of new issues more than doubled on Group's primary markets. Chief Executive said:
"This was a good first half performance. super-fast MillenniumIT trading platform. Xavier Rolet. particularly Reference Data. MTS. and early feedback from customers has
. Expansion of the UnaVista trade matching and confirmation service well received. Share of order book trading stabilised in UK cash equities market during the period and average daily UK equity value traded up seven per cent vs H1 last year though yield declined as expected following successful pricing promotions. Trading volumes on Group's fixed income (cash) markets up 21 per cent and derivatives trading volumes on IDEM up 19 per cent .
Commenting on performance of the Group over the period.
Post Trade Services' total income up nine per cent. new client connections and a number of new third party software contract wins for MillenniumIT . This is now live on our pan-European MTF.average daily value traded over €200 million in second quarter during which time it was the number one European dark pool MTF. including 19 international companies. "We have seen a significant pick up in IPO activity across our markets. Post Trade. Proquote and FTSE. Significant growth in non-display trading on Turquoise . with the uplift in earnings reflecting contributions from our increasingly diversified international exchange business. with launch of new data centre developments. CCP services extended to cash collateral management previously performed by the Bank of Italy . and a continued flow of IPOs in recent weeks indicates an encouraging pipeline. Strong demand for information products. Real time data professional user figures stable at London Stock Exchange and Borsa Italiana. Turquoise. driven by increased clearing volumes and stronger treasury income from the central counterparty business. with a more than doubling of the number of new issues in H1. with £18 billion capital raised.
On 2 November we announced that the Turquoise platform was the subject of a two hour outage. with clients able to use existing networks and trading connections to Turquoise. "Pursuing growth opportunities. continued delivery on cost reductions. with clients of our Italian derivatives operation now benefitting from the performance improvements this brings. high performance MillenniumIT trading system has been completed with its introduction at Turquoise. subject to regulatory approvals. the Group's existing derivatives trading platforms and clearing links to LCH. We plan to launch trading of pan-European equity derivatives. our Italian equity derivatives business. with a number of product developments and new launches during the period. the first successful stage of the programme to roll out the new."
Leveraging Group Assets
Actions to develop the Group have continued.been overwhelmingly positive. Connections and membership will be straightforward. and as already highlighted. There is still much for us to do and. Plans for roll out of the new system continue and we are working with customers on a date for migration of the UK main market. A further four migrations will take place over approximately the next 18 months. This new service will combine the advantages of the Turquoise MTF model with the London Stock Exchange infrastructure. Importantly. The next step will be moving the main UK cash equities market over to the Millennium Exchange platform in early 2011. likely to be early calendar 2011. We remain on track to deliver at least £10 million per annum of further cost savings from FY 2012. enhancing our competitiveness. although market conditions are likely to remain mixed. through the Turquoise MTF platform. linking price formation in equity derivatives and underlying equities in a unique low latency environment. The service is expected to commence in the second quarter of 2011. consistent with our strategy to improve operational efficiencies and leverage the Group's assets. This was an isolated incident and although a thorough investigation is ongoing it is clear that it was unconnected to the functioning of the trading platform itself. after which the legacy equities trading system will be retired and replacements for other Group systems can be implemented using MillenniumIT technology. "We have made good progress in developing our equity derivatives offering. Migration to the SOLA derivatives platform has also recently taken place at IDEM. starting with FTSE futures. Significant project work is taking place to extend derivatives trading. driving efficiencies and customer service will remain pivotal to the Group's strategy in the period ahead. recently migrating IDEM. we nonetheless expect to make further progress in the second half of the year. onto a significantly enhanced technology platform. and today we can also confirm that we will be launching equity derivatives trading on Turquoise in the second quarter 2011.
. This is a critical achievement and represents a fast development and testing process in less than a year since acquiring MillenniumIT.
within real time data the launch of a new post-trade price and trading information service.p.
enhancement of the server co-location service by creating space for nontrading clients and also offering a low latency order routing service to colocation clients. the Confirmation Portal and the Swaps Portal.
.5 million The acquisition of a further 67 per cent of shares in MTS France SA for a consideration broadly equal to the cash acquired. An expansion of the range of ETFs and ETNs which are tradable on our markets The acquisition of Pro Mac S. providing access to all major European and US execution venues . extension of the UnaVista service with the launch of two new services. a market dedicated to Italian small and mid-cap companies. for a net cash consideration of £0. including new pricing incentives for equities trading and lower cost real time data.A. providing users further choice with a new separate data feed at low cost and facilitating greater transparency of such data and ease of consolidation by market data distributors.A number of other initiatives have also been announced or launched:
Improved services for the retail market. enabling MTS to enhance economies of scale in its European operations. both of which help brokers and their clients automate manual trade processes to reduce post trade costs and risk. in Italy. and a greater number of bonds on the retail order book.