4th Dec

More Rounded Proposition from ORB

The London Stock Exchange has announced plans to introduce a broader fixed-income trading service to complement its existing Order book for Retail Bonds (ORB) and allow electronic trading in a wider range of products

ORB was launched in February 2010 and was created to give private investors access to trading in corporate, government and supranational bonds with retail-friendly deal sizes; since its launch a wide range of companies have come to market, raising a total of £3.6 billion to date. 

Off-exchange trading facilitates those that want to transact bonds in larger size and report trades to the exchange. 

Customer Demand

The broader fixed-income capability, which will launch on January 25th 2014, will comprise a number of different segments that build on the ORB platform including the ability to trade fixed income securities in wholesale size, issue complex securities that are suitable for retail investors and also trade non-London listed securities. 

Gillian Walmsley, head of fixed income products at the London Stock Exchange, said that the move was in response to customer demand for a wider range of securities to be supported by the ORB model, adding ‘The new service will allow issuers to have their bonds supported by market makers or end of day pricing. It is aimed at retail intermediaries that want a wider range of products, but will also be open to institutions that want access to on-screen liquidity.’ 

‘The secondary market on the Orb has come into its own this year,’ said Walmsley, ‘we see the strongest liquidity in the dedicated Orb issues that have been brought to the market specifically for retail investors.’ 

A cursory look at current secondary market prices on ORB confirms that retail bonds have performed strongly, with most trading above par and capital appreciation of 5% far from uncommon.     

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