Service
Announcement
001/16082016
Millennium Exchange – New Functional
Release 9.1
The purpose of this announcement is to inform customers of upcoming functional
enhancements to Millennium Exchange. The functional release will be available in the
Customer Development Service (CDS) environment early September 2016. Further notices will
be issued in due course to confirm the dress rehearsal and go-live dates.
1.0 New Functionality
Functional enhancements include:
Introduction of Request for Quote (RFQ) Functionality
The launch of new Request for Quote (RFQ) functionality for Exchange Traded Funds (ETFs)
and Exchange Traded Products (ETPs) will offer on Exchange benefits and cleared execution
for larger size trades, allowing greater flexibility and protection for both institutional customers
and responding market makers. The RFQ platform will run alongside and compliment the
existing order book structure providing a mechanism whereby traders can privately negotiate
and execute large trades with market makers outside of the normal order book
Key features
•All trading participants connected to the order book will be able to access the RFQ platform
•Registered market makers will be able to respond to quotes
•RFQ sessions will be private between the requestor and market maker
•The requestor will be able to choose if they are to remain anonymous or named
•To maintain order book liquidity, a minimum trade size will be set at 4x EMS and move to 1m
Euro MIFID II LIS size post MiFID II ensuring the trading facility is compliant with MIFID II LIS
•The service will offer automated trade reporting and clearing
Please note that RFQ is subject to FCA approval.
1
Service
Announcement
001/16082016
Millennium Exchange – New Functional
Release 9.1
•In the anonymous model, all Registered Market Makers will receive the quote request and be
able to respond to quotes
•In the named model, only selected Registered Market Makers will receive the quote request
and be able to respond to quotes
Additional information is available in the RFQ Service & Technical Description document
available at http://www.lseg.com/rfq.
Introduction of pre trade risk controls (PTRCs)
•To help facilitate market adoption of LSE of on Exchange cleared bilateral type trade
functionality, such as RFQ, pre trade risk controls will be available via a GUI for GCMs and
CCPs to manage if required.
•Risk controls consist of real-time gateway level validations. Alerts will be sent when configured
thresholds are breached. Users can also monitor risk exposure in real time via a web portal. A
kill switch is also available.
•The web portal will be used to configure users and is independent of any Sponsored Access
controls. A file upload facility will also be available to GCMs and CCPs for setting PTR limits.
Member firms can request a read only version of the web portal.
•Limits will be available at Global Level (User ID) and Instrument Group Level (User ID –
Instrument Group). Maximum order values for each order type and restricted instrument lists
can also be set.
Sponsored Access Enhancements
•Ability to update restricted instrument list via Sponsor Access Portal
2.0 Technical Specifications
Updated Technical Specifications can be found on the London Stock Exchange website under
the “Next Technical Specifications (Release 9.1)” section at the below location:
http://www.londonstockexchange.com/products-and-services/technical-library/millenniumexchange-technical-specifications/millennium-exchange-technical-specifications.htm
Service
Announcement
001/16082016
Millennium Exchange – New Functional
Release 9.1
3.0 Certification Requirements
Certification will be mandatory for those making changes to their software to support the new
functionality. Certification guidelines can be found in MIT502 – Guide to Certification. This
document can be found on the London Stock Exchange Group website at the following location:
http://www.londonstockexchange.com/products-and-services/technical-library/millenniumexchange-technical-specifications/millennium-exchange-technical-specifications.htm
Members should contact their Technical Account Manager or the Technical Account
Management team to schedule their certification test.
4.0 Further Information
If you have any queries about this announcement please contact your Technical Account
Manager directly or the Technical Account Management team on +44 (0) 20 7797 3939 or
[email protected].
Relates to
Additional Information
Exchange(s)
If you have any queries about this announcement please
contact your Technical Account Manager on:
020 7797 3939 or [email protected].
—
London Stock Exchange
Environment(s)
—
CDS
Type
—
Technical Update
An archive of previously issued service announcements is
available in the technical library section of the Exchange's
Internet site http://www.londonstockexchange.com/techlib
Customers are reminded that London Stock
Exchange may broadcast test data from its
Production environment at the weekends which
should be discarded and not processed.
Product(s)
—
Millennium Exchange
Customers are reminded that London Stock
Exchange may extend or re-enter the Post Close
session for instruments or segments in order to
perform necessary end of day activities