The London Stock Exchange (LSE) has hit record trading volumes after the introduction of its upgraded IT platform, according to financial results released today.
According to its results, average daily trading volumes on SETS, the exchange's electronic order book trading service for securities, rose to 551,000, a 75% increase over the same period last year. This exceeds the target average of 480,000 LSE had been hoping to achieve to the end of the year.
The introduction of TradElect, the new electronic trading platform that was rolled out in June, facilitated this boost in trading volume, according to LSE. The platform has enhanced capacity and improved transaction speeds, enabling high trading volumes even at times of peak demand, said the exchange.
A cut in trading tariffs of about 10%, along with adjustments to the volume discount scheme that began in April, has also spurred this increased trading activity on SETS.
The total value of securities trading is up 47% on last year to £918bn. The average value of a SETS bargain is down from £19,100 to £15,900.
"The SETS electronic order book achieved enormous volume growth over the summer, as increased market volatility during the period added to strong growth already being facilitated by the new TradElect platform," said LSE chief executive Clara Furse.
The exchange has also had an increase in users of its Information Services function. The Information Services division markets and sells London market data and specialist securities information to member firms, information vendors, companies and investors. Its services include Proquote – London's fourth largest market data vendor that provides global and UK centric financial market data.
The number of terminals receiving real-time LSE data has increased by 18,000 to 125,000 compared with the same period last year. The number of terminals outside the UK has continued to increase.
The number of Proquote screens rose to 3,800 screens, up 600 on the same time last year and including 1,400 international screens.