SETSqx (Stock Exchange Electronic Trading Service - quotes and crosses) is the LSE's hybrid platform for less liquid securities, combining periodic auctions with continuous market maker quotes.
Auction Schedule
| Auction | Time | Call Period |
|---|---|---|
| Opening | 08:00 | 5 minutes + random 30s close |
| Intraday | 11:00, 15:00 | 5 minutes + random 30s close |
| Closing | 16:30 | 5 minutes + random 30s close |
Between auctions, registered market makers provide firm two-way prices with strict spread obligations.
Typical SETSqx Securities
| Category | Examples |
|---|---|
| AIM stocks | Most Alternative Investment Market listings |
| Small Main Market | Below SETS liquidity thresholds |
| Investment trusts | Closed-end funds |
| Specialist securities | Warrants, preference shares |
How It Works
The hybrid model suits less liquid stocks:
- During auctions: Orders accumulate and execute at single uncrossing price
- Between auctions: Market makers quote firm prices within regulated spreads
- Large trades: Can be negotiated off-book and reported
This combination provides both price discovery (auctions) and continuous liquidity (market makers) for securities that don't justify full order book trading.