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Your Guide to Trading on London Stock Exchange Group Contents

Your guide to trading on Exchange Group Contents

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“With a single connection to Our diverse range of offerings 04 London Group, can access securities trading services 05 from over 100 countries London Stock Exchange Main 06 including developed as well London Stock Exchange AIM 09

as emerging markets.” London Stock Exchange International 10

Shanghai-London Stock Connect 12

Turquoise 14

Borsa Italiana 15

Exchange Traded Products 16

Fixed income 17

Closed-ended funds 18 By making this communication, none of London Stock Exchange Group plc and/or its group undertakings (which shall be construed in accordance with section 1161 of the Act 2006) (together, “LSEG”) intend to invite or induce you to engage in any activity for the purposes of the UK regulatory FTSE Russell 20 regime (other than, where relevant, in respect of the London Stock Exchange plc’s exempt activities of operating UK-regulated investment exchanges and providing services in the UK).

This publication does not constitute an offer to buy or sell, or a solicitation of an offer to sell, any securities, or the solicitation of a proxy, by any person in any jurisdiction in which such an offer or solicitation is not authorised, or in which the person making such an offer or solicitation is not qualified to do so, or to any person to whom it is unlawful to make such an offer or solicitation.

Information in this publication may or may not have been prepared by the LSEG, but is made without any responsibility on its part. All information in this publication is provided ‘as is’ and LSEG does not make any representations and disclaims to the extent permitted by law all express, implied and statutory warranties of any kind in relation to this publication, including warranties as to accuracy, timeliness, completeness, performance or fitness for a particular purpose.

No action should be taken or omitted to be taken in reliance upon information in this publication. LSEG does not accept any liability for the results of any action taken or omitted on the basis of the information in this communication. The information in this publication is not offered as advice on any particular matter and must not be treated as a substitute for specific advice. In particular, information in this publication does not constitute legal, tax, regulatory, professional, financial or investment advice. Advice from a suitably qualified professional should always be sought in relation to any particular matter or circumstances.

AIM, London Stock Exchange, the London Stock Exchange device are registered trademarks of London Stock Exchange plc. Other logos, organisations and names referred to may be the trademarks of their respective owners. No part of these trademarks, or any other trademark owned by LSEG can be used, reproduced or transmitted in any form without express written consent by the owner of the trademark. Your guide to trading on London Stock Exchange Group 03 Our diverse range London Stock Exchange of offerings trading services

London Stock Exchange Group (LSEG) operates – SETS is London Stock Exchange’s flagship electronic order book, trading a broad range of international equity, ETP, DID YOU KNOW? FTSE 100, FTSE 250 and FTSE Small Cap index constituents as well as liquid AIM, and derivatives markets, including London Stock Irish and London Standard Listed securities. are available at 7.50am, Exchange; Borsa Italiana; and Turquoise, a 12.00pm and 4.30pm. pan-European equities trading venue. Through – SETSqx is designed for securities less liquid than those traded on SETS and its platforms, LSEG offers market participants, 70%+ of revenues of London combines continuous quote-driven market with five electronic auctions including retail investors, institutions and SMEs Stock Exchange (8.00am, 9.00am, 11.00am, 2.00pm and 4.35pm). access to Europe’s capital markets. London largest 100 companies – International Order Book (IOB) is dedicated for trading GDRs using the same Stock Exchange Trading Services are designed to are derived from underlying technology as SETS. Almost all securities are traded in USD. maximise liquidity for all participants and include outside the UK Auctions are available at 7.50am, 12.00pm and 4.30pm. fully electronic order-driven services for liquid UK and international Global Depositary Receipts, and quote-driven services for less liquid TRADING ON SETS 16:30 Closing and closing price crossing securities. With a single connection to London session (CPX) A , modified regular trading session Stock Exchange Group, investors can access that follows the closing auction, where executions can securities from over 100 countries including 07:50 Opening auction call only be executed at the closing auction price. developed as well as emerging markets.

07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 Trading venues

08:00 SETS opens for trading 12:00 Intra-day auction A two-minute call period followed by a random 30-second uncrossing

Key terms Global Depositary Receipts (GDRs) Negotiable certificates issued by depositary Securities available Auction which represent ownership of a given A period where no automatic execution takes number of a company’s shares which can be place in order to concentrate available liquidity. listed and traded independently from the During an auction call period, orders can be underlying shares. These instruments are Equities including Depositary Receipts ETPs Closed-ended funds Bonds Derivatives entered, modified or deleted. Following the typically used by companies from emerging auction call period an auction uncrossing takes markets. These securities are generally traded place. The auction uncrossing generates the in USD on the exchange’s electronic trading auction uncrossing price. service, the International Order Book (IOB).

Your guide to trading on London Stock Exchange Group 04 Your guide to trading on London Stock Exchange Group 05 European trading hours sit between London Stock Exchange US and Asia trading hours Main Market

London Stock Exchange’s Main Market is BST* 8.00am market closes UK MARKET OPENS the world’s most international market for the admission and trading of equity, debt and other securities. Its location at the heart of the world’s leading makes it the ideal home BST 9.00am HK market closes to over 2,000 companies, including many of the world’s largest, most successful and most dynamic companies. It has the deepest pool of capital in Europe. Underpinned by London’s balanced and globally- respected standards of regulation and corporate DID YOU KNOW? governance, the Main Market represents a badge of quality for every company admitted to and traded on it, and an aspiration for many 2,000+ companies worldwide. listed companies

TOP FIVE MOST TRADED IN 2018 BST 2.30pm US market opens

Issuer name TIDM 5 of the top 10 IPOs BP PLC BP by market cap in 2018 were international HSBC HOLDINGS PLC HSBA BST 4.30pm UK MARKET CLOSES Banks, Mining and PLC BATS Oil & Gas producers are the three most traded PLC RIO sectors on Main Market PLC RDSA in 2018

Home to FTSE 100, FTSE 250, FTSE 350 and FTSE All- * British Summer Time

Your guide to trading on London Stock Exchange Group 06 Your guide to trading on London Stock Exchange Group 07 London Stock Exchange AIM

AIM is the world’s leading international growth market. Since its launch in 1995, over 3,800 DID YOU KNOW? companies from across the globe have chosen to join AIM. Powering the companies of tomorrow, AIM continues to help a wide range of , including early-stage, venture-capital-backed 900+ quoted companies and more established companies, raise the capital they need for expansion.

TOP 10 TRADED NAMES ON AIM IN 2018 $ 180bn+ Total money raised Company name ICB sector since launch in 1995

ASOS plc General Retailers Consumer Services, Technology and Beverages Fevertree Drinks plc Financials were the Burford Capital Limited three most traded industries in 2018 IQE plc Technology Hardware & Equipment AIM is the largest growth market in Europe Boohoo Group plc General Retailers AIM securities have Abcam plc Pharmaceuticals & Biotechnology significant tax advantages as they Blue Prism Group plc Software & attract no stamp duty Computer Services

Victoria plc Household Goods & Home Construction

Keywords Studios plc Support Services

Hurricane Energy plc Oil & Gas

Your guide to trading on London Stock Exchange Group 09 London Stock Exchange International Order Book

International Order Book is a London Stock Exchange dedicated service to trade Global DID YOU KNOW? Depositary Receipts (GDRs). GDRs are securities issued by depositary banks, which represent ownership of a given number of a company’s shares. Traded in USD, it offers cost-efficient, 140+ issuers from secure and transparent access to invest in some 30+ countries of the world’s fastest-growing markets. The -London Stock Connect GDRs will Most traded Asian DR be traded on the newly dedicated Shanghai in 2018 Segment of the International Order Book.

DID YOU KNOW? Top three traded Russian GDRs in 2018 Sberbank of Russia PJSC PJSC

Top three traded South Korean GDRs in 2018 Electronics LG Electronics

Top three traded Indian GDRs in 2018 State of India Countries with GDR on LSEG

Your guide to trading on London Stock Exchange Group 10 Shanghai-London Trading Stock Stock Connect Connect GDRs

The UK and China are working in partnership Traded on Underlying securities Cleared and settled at to create the Shanghai-London Stock Connect. DID YOU KNOW? It will allow global investors to benefit from GDR LSE A Shares already listed LCH, Euroclear Bank China’s growth through London, while UK-listed The Shanghai-London (Global Depository Receipt) and traded on LSE companies will be able to access Chinese Stock Connect represents CDR SSE Premium shares already ChinaClear investors directly. It will allow listed companies a number of firsts: (Chinese Depository Receipt) listed and traded on LSE to be traded by more investors, and provide time any foreign them with more investment choice. FIRST companies will be able to list in Mainland China New dedicated Shanghai segment Trading and in USD on International Order Book to trade on T+2 – no pre-funding and no FIRST time SSE-listed Stock Connect GDRs. pre-delivery requirements. companies will be able to raise capital abroad through instruments All trading participants with fungible with their access to International Order Book 9.00am–4.30pm domestic shares (two trading will be able to access liquidity pools, one price) Shanghai Segment. Shanghai Segment trading hours FIRST time international investors will be able to access China A-shares 16:30 Closing auction and closing from outside Greater price crossing session (CPX) A short, modified regular trading China (and through 09:00 Shanghai session that follows the closing international trading and 08:00 IOB opens Segment GDRs auction, where executions can only be settlement practices) for trading begin trading executed at the closing auction price.

FIRST time Chinese investors will be able 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 to access international stocks from China without being subject to domestic 07:50 Opening 08:50 Opening 12:00 Intra-day auction capital controls. auction call auction call for A two-minute call period followed Shanghai Segment by a random 30-second uncrossing

Your guide to trading on London Stock Exchange Group 12 Your guide to trading on London Stock Exchange Group 13 Turquoise Borsa Italiana

Turquoise is a pan-European trading platform majority owned by London Stock Exchange DID YOU KNOW? DID YOU KNOW? Group, in partnership with 12 investment banks. It offers a broad universe of 4,500 stocks with one connection to 19 major European and emerging $ tn markets, as well as US stocks, IOB Depositary 8 + 241 traded since launch companies Receipts, ETFs and European Rights Issues. listed on MTA Turquoise Plato™ entered 2019 as the fastest growing 1 connection and largest European as recognised 115 companies quoted 19 countries by Rosenblatt Securities on AIM Italia 4,500+ Turquoise was featured in securities The Parliamentary Review 2016 and 2018 and 24 recognised as the winner Italian listed luxury of The TRADE’s Leaders brands are included in in Trading 2017 Award the FTSE Italia Brands for Block Trading Venue index, which promotes the best Italian brands Turquoise won the by creativity, excellence, Financial News 2015 intuition, innovation Award for Excellence in and global appeal Trading and Technology for Most Innovative Borsa Italiana has been part of London Stock Top three most traded Trading Product/Service. Exchange Group since 2007. Companies can luxury brands in 2018: choose to join Borsa Italiana’s Main Market (MTA) Ferrari, Moncler and or the Italian Growth Market, AIM Italia. MTA is Pirelli & C dedicated to mid and large-size companies that meet the highest international standards. AIM Italia is a dedicated growth market for SMEs looking to raise capital.

Your guide to trading on London Stock Exchange Group 14 Your guide to trading on London Stock Exchange Group 15 Exchange Traded Products

ETPs fall broadly into two categories: ETFs London Stock Exchange cements its and other ETPs which include Exchange Traded DID YOU KNOW? as a leading global venue for international debt (ETCs) and Exchange Traded Noted fundraising, with 13,000 listed debt instruments (ETNs). An ETF is an open-ended collective in 43 from over 1,170 issuers. Our investment scheme that is traded on one or markets are home to debt securities issued by more exchanges. The aim of an ETF is to track 85% household FTSE 100 names such as National Grid, increase in order-book the performance of a specific index, which can , Bank, British Telecom, British turnover over the last be country- or region-specific and/or based on Petroleum and amongst others. six years a variety of classes such as fixed income, DID YOU KNOW? London Stock Exchange platforms offer many money markets and many more. Like a fund, an different options for private investors wanting ETF gives access to a portfolio of shares, bonds to access sources of retail-focused fixed income or other asset classes, and like shares, ETFs are 1,600+ 478 capital – the Order Book for Retail Bonds (ORB) bought and sold on exchange. Consequently, ETPs on our market fixed income ETFs is an electronic, order-driven trading service ETFs combine the diversification of an investment from over 30 issuers for over 160 UK government, supranational fund with the tradability of a share. With ETFs, retail investors and corporate bonds. Since 2010, it has offered can now gain access to retail investors efficient access to an on-screen 47 TOP FIVE TRADED ETPS listed debt funds on broad-ranging exposures in London-listed debt our market worth over for the same cost as an instruments. Our Order Book for Fixed Income Issuer name TIDM $17 billion, including institutional . securities (OFIS) also has the functionality to investment across direct ISHARES CORE FTSE100 UCITS ETF ISF ETFs often have lower display prices for retail bonds, allowing for a lending, real estate and GBP (DIST) management fees than wide variety of bond structures to be accessible infrastructure debt active funds and attract to retail investors. A common characteristic of all VANGUARD S&P 500 UCITS ETF VUSD no stamp duty. retail bonds listed on ORB and OFIS is that they have trading denominations of under £1,000. ISHRS CORE S&P 500 UCITS ETF CSPX The majority of retail dedicated issuances have USD (ACC) 110+ been in £100 denominations with a minimum London is the premier £2,000 investment. And retail investors also ISHRS CORE MSCI WORLD ETF IWDA Renminbi trading hub have access to a wide variety of alternative fixed USD (ACC) outside Greater China income products including Fixed Income ETFs with 110+ RMB bonds, ISHARES PHYSICAL GOLD ETC IGLN and closed-ended funds. including the first ever offshore Chinese Sovereign RMB bond

Your guide to trading on London Stock Exchange Group 16 Your guide to trading on London Stock Exchange Group 17 Closed-ended funds London investment funds sector breakdown

London Stock Exchange’s market Diverse investment has over 450 listed funds worth over $220 billion. London-listed funds offer exposure to a range of mandates across investment strategies across geographies, equities asset classes and and debt, and a range of alternative asset strategies including infrastructure, real estate, geographies , royalties and renewable energy. Source: London Stock Investment funds have listed on our markets for Exchange, Numis Investment over 150 years, and cover over 80 sub-sectors. Companies Research These can be accessed by investors, including retail investors on the Premium Segment of the Main Market, and by institutional, professional, DID YOU KNOW? 450 professionally-advised and knowledgeable investors on our Specialist Fund Segment. From investment accessing UK and European fintech to solar $ 220bn funds in the US and Australia, you can access the most total market 31% international and diverse closed-ended funds value of funds UK market through London Stock Exchange. Key highlights 200+ fund managers have 12% – Fund managers that list funds in London Debt existing listed funds include Baillie Gifford, JP Morgan Asset in London Management, Aberdeen Standard , Janus Henderson, Fidelity and BlackRock. – Innovative asset classes such as music royalties, 10% 10% 8% 8% 7% energy efficiency and energy storage were 300% Global Property Asia Pacific Sector Private Equity welcomed to London’s funds market in 2018. listed green fund sector Specialist has grown over 300% – We celebrated the largest fund launch ever in the last five years in Smithson in 2018, raising over $1 billion which invests in 5% 3% 3% 2% 1% global small-medium companies. Emerging Infrastructure Hedge Funds Europe North America Markets

Your guide to trading on London Stock Exchange Group 18 Your guide to trading on London Stock Exchange Group 19 FTSE Russell

FTSE Russell is a leading global provider of benchmarks, analytics and data solutions with DID YOU KNOW? multi-asset capabilities. FTSE Russell’s expertise and products are used extensively by institutional China A Shares are and retail investors globally. Approximately $16 included in FTSE’s global trillion is currently benchmarked to FTSE Russell equity benchmarks. indexes. For over 30 years, leading asset owners, FTSE Russell was the asset managers, ETF providers, and investment first international index banks have chosen FTSE Russell indexes to provider of mainland benchmark their investment performance China benchmarks and create investment funds, ETFs, structured 20 years ago. products and index-based derivatives. FTSE Russell indexes also provide clients with tools for asset allocation, investment strategy analysis and risk management.

Your guide to trading on London Stock Exchange Group 20 London Stock Exchange 10 London EC4M 7LS Telephone +44 (0)20 7797 1000 [email protected] www.lseg.com @LSEGplc london-stock-exchange-group

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