Trading frequency on SETSqx

Hi folks!

I’m trying to understand how SETSqx works and how it works with t212.

I’ve read that this exchange performs auctions a few times per day, but checking a few other platforms I can see that there are trades throughout the day.

I’m a bit confused about how this works and if other providers (or would it be market makers?) allow to trade shares in that exchange throughout the day.

Thank you!

Hey, @BlueMark :wave:

SETSqx orders are executed via Direct Market Access which our intermediary uses as a primary routing option. Due to this, the execution of orders can only occur during the open auctions of the day at 8 AM, 9 AM, 11 AM, 2 PM and 4:35 PM if there is sufficient liquidity at the time. You can read more about the SETSqx on LSE’s official page here.

Thanks for your answer @Momchil.G (and I might be daft here, so please bear with me!).

Does this mean that due to the connection t212 has with the intermediary, that trading only happens during the open auctions? But if I could have a different access to the exchange (or market makers) I could trade outside those hours?

I’m trying to understand how is that trades happen outside the open auctions as LSE reports trades happening all through the day.

And a very important question for me: if I have a buy order at X price, will that order be executed only during the auction? Even if the market might move drastically past it between auctions? I have the impression that it might be executed during the auction, but I want to be sure :smile:

You’ll get the market price if you use a market order - so whatever the price is at execution.

If you have a set price in mind use a limit order.

Hi @Scrooge_McCodf ! Thanks for your reply. My question is more about timing of the transactions.

There have been a few markets that had a lot of volatily in the last few days, and having to wait for an auction to do a transaction can be the difference between a very good profit and a mild one.

Don’t trade those stocks on here then.

Hi @BlueMark

I have other accounts (eg for SIPP and other types of trading). I trade several companies on SETSsq. I haven’t had the need to get into the detailed mechanics of how the trades and exchange works but understand the auctions. With other brokers I can get immediate quotes and trades. At times a market order can, however, just sit on T212 without execution even beyond auctions.

I am a big fan of T212 and think it’s a great platform with fantastic customer service. However, nothing in life in perfect and that includes to T212. A pet grumble is the lack of bid offer prices and a lesser grumble (lesser for me) is the execution of SETSsq trades and not being able to get a quote and trade. Essentially on T212 I just use limit orders and that certainly applies for anything illiquid or that goes through an auction.

In terms of volatility what are you referring to? I ask this because if you are referring to the price on T212 then ignore it especially for a SETSsq stock its pretty meaningless. If I use one of my other accounts I can always get a quote and its well inside the T212 price but I’ll pay commission and fees. The price on T212 for some companies moves around a lot but the real price is pretty static its just on T212 you’re seeing it oscillate between published buy and sell prices whereas in the market trades are being done with much tighter spreads.

For me its a bit annoying but T212 have finite resources. I am really (really really) pleased they introduced extended hours trading for US stock it is fantastic. I am really looking forward to them having Options. Thus on the list of priorities getting a better solution for SETSsq is somewhere down the priority list. Basically until they do I do big trades in my other accounts and just have sitting limit orders on T212 to hopefully buy/sell small quantities at decent prices.

All of that said, it does vary between different stock. Two companies can both be on SETSsq but trading one is significantly better than the other (on T212) thus I suspect liquidity is a big factor. As I said, elsewhere I can get immediate quotes and trades even for the more illiquid stock so I do wonder (=don’t know) whether part of the problem is that trades on these illiquid companies are being done outside of the auctions (ie me getting an immediate quote and trade) which means that the auctions are even more illiquid resulting in T212 not executing due to lack of liquidity in the auction. I would be very interested in detailed comment from someone who actually knows the mechanics of these markets


@Scrooge_McCodf I’m not complaining, if you read my post again you’ll see that I’m trying to understand how trading with the SETSqx exchange works.

For example, that trades through t212 on SETSqx are executed on auction times only, is that common to all platforms available to small investors? And only big investors, with relationships with market makers can trade outside of the auction times?

And stragegy that I could apply is to open a spreadbet trade (which is executed immediately) and as a way to hedge the time it takes to open the position via t212. This is more expensive, but can work well if I expect the price to increase quite rapidly.

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@Momchil.G personally I would find it helpful if the company info displayed what exchange a stock is on. At the moment the info just says “UK” for companies listed on SETSsq so I don’t know whether my order is going to end up sitting there until executed in an auction or not. For me it would be useful to know on the company info page that a company is on SETSsq (or similar exchanges)

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Thanks a lot for your reply @WakeMeUp !

That’s interesting to know, that in other platforms you can trade without a delay on markets available on SETSqx. About volatility, I meant the real underlying price. As you, I use a different platform to get real time prices (and a few other nice tools).

I really like t212, so this is not a criticism. I want like to understand the pro/cons of the platform so I use it for the things it does best, and don’t find myself in a tight spot :wink: .

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It would be interesting to know whether it is a cost or development issue - ie does the facility to place trades immediately in the market cost more (on a wholesale basis) and thus mean its not viable for a platform with no commission fees or is it a development issue (ie would take additional time to develop the trading platform) or is it simply impossible via IBKR (T212’s intermediary). Obviously if its a costs issue or impossible then we’re unlikely to ever get it but if it’s a development priority issue then I’d prefer extended hours (which we have), Options and some other trading enhancements but I’d definitely put this above cosmetic enhancements to the platform (ie providing some extra info or a report…)

Not having bid/offer prices and not knowing the spread does make it virtually impossible to trade SETSsq shares on T212 other than just placing limit orders and leaving them to hopefully execute sometime

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