Exchange's electronic trading system losing market share
Saturday 31 January 1998
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.
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Rozanne Duncan: Ukip expels councillor for 'jaw-dropping' comments made in BBC TV interview
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
Sony hack: Angelina Jolie branded 'seriously out of her mind' in further embarrassing leaked email saga
iJobs Money & Business
£43500 per annum + pension + holidays: The Jenrick Group: Night Shift Operatio...
£20000 - £25000 per annum + OTE £40,000 + Car + Pension: SThree: SThree are a ...
£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...
£20000 - £25000 per annum + OTE £35000: SThree: SThree are a global FTSE 250 b...