I have had a couple of queries about the new LSE formats so here goes in laymans terms.

1)SETSmm.

To increase usage of the SETS system by those companies from the FTSE 250 not currently using the electronic order book, they will now become part of SETSmm. Basically its a hybrid system using the SETS order book system but with one market maker who will guarantee to make a book or a price. Currently on SETS although MMs are in the background there is no guarantee that they will trade.

The SETSmm screen will therefore look like the electronic order book you are used to, but with one slight difference, it will also show the individual market maker, its code and its price.

The LSE has yet to define at what level the MM must operate. In other words the Mm will not have to follow the top orders(yellow strip) but could place his price some way out. This max. distance has yet to be decided. On the screen shot below I have created a hypothetical example of how it may look.





2)Iceberg

No not a lettuce or a shipping hazard. At present if someone wants to place a large order they can do it in one go or break it up into smaller amounts(trances), these trance orders are entered electronically by the company itself. So say they have 100,000 shares to sell they might split it up into lots of 10000, as one gets filled they then electronically enter another one(Crocs Bots).

Iceberg now means they can tell the LSE directly that they want to sell 100,000 and do it in 10,000 lots, the LSE will now place the orders for them

Andy: Sadly they will not be marked, boo hoo!