Stock Exchange Automated Quotation System (S.E.A.Q.)

The Stock Exchange Automated Quotation System (S.E.A.Q.) is an electronic trading system used on the London Stock Exchange to facilitate the trading of securities not listed on the main order book.
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Updated: Jun 6, 2024

3 key takeaways

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  • S.E.A.Q. is an electronic system for trading securities not listed on the main market of the London Stock Exchange.
  • It provides real-time quotes and trade reporting, enhancing transparency and liquidity.
  • S.E.A.Q. supports smaller, less liquid stocks by offering a platform for their trading.

What is the Stock Exchange Automated Quotation System (S.E.A.Q.)?

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The Stock Exchange Automated Quotation System, commonly known as S.E.A.Q., is an electronic system developed by the London Stock Exchange (LSE) to facilitate the trading of securities.

Introduced in the 1980s, S.E.A.Q. was one of the earliest systems to provide real-time price quotations and trade reporting electronically. It was designed to improve the efficiency and transparency of the securities market, particularly for smaller and less liquid stocks that are not traded on the main order book.

Functionality of S.E.A.Q.

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S.E.A.Q. serves as a platform where market makers provide bid and ask prices for securities, ensuring that investors have access to up-to-date pricing information. The system allows for continuous trading throughout the trading day, providing real-time data on prices and volumes.

This helps in enhancing liquidity and enabling efficient price discovery for securities that may not have as much trading activity as those listed on the main market.

Importance of S.E.A.Q.

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The introduction of S.E.A.Q. was a significant development for the London Stock Exchange, providing several key benefits:

  • Enhanced transparency: By offering real-time quotes and trade reporting, S.E.A.Q. increased the transparency of the trading process. Investors could see the current market prices and make more informed decisions.
  • Increased liquidity: S.E.A.Q. helped to improve the liquidity of smaller and less frequently traded securities by providing a platform where these securities could be actively traded.
  • Support for smaller companies: The system provided an important venue for smaller companies to have their securities traded, which might not meet the requirements for listing on the main market.

Evolution and impact

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Since its introduction, S.E.A.Q. has undergone several changes and updates to keep pace with advancements in technology and the evolving needs of the market. The system has played a crucial role in the modernization of the London Stock Exchange, paving the way for further innovations in electronic trading and market infrastructure.

S.E.A.Q.’s impact extends beyond just providing a trading platform. It has contributed to the overall efficiency and competitiveness of the London Stock Exchange by ensuring that a wider range of securities can be traded transparently and efficiently.

This has made the LSE a more attractive venue for both issuers and investors, fostering a more inclusive and dynamic market environment.

The Stock Exchange Automated Quotation System (S.E.A.Q.) is a pivotal component of the London Stock Exchange, designed to enhance the trading of smaller and less liquid securities.

By providing real-time quotes and improving market transparency, S.E.A.Q. has significantly contributed to the efficiency and accessibility of the LSE, supporting a broader range of market participants and promoting a more vibrant trading ecosystem.



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Arti
AI Financial Assistant
Arti is a specialized AI Financial Assistant at Invezz, created to support the editorial team. He leverages both AI and the Invezz.com knowledge base, understands over 100,000... read more.