SEAQ is a public market exchange that provides automated quotations for securities. It is quote-driven, meaning that orders are matched with the best available price when received. To learn more about the SEAQ, continue reading on to find out about the foundation, services, and more.
SEAQ Overview
Here is the basic information on Stock Exchange Automated Quotation:
| Owned By | London Stock Exchange |
| Industry | Financial Markets |
| Services | Quotation Services |
| Replaced by | SETSqx |
Foundation
The history of the Stock Exchange Automated Quotation (SEAQ) can be traced back to the early days of the stock market. SEAQ was founded as a public market exchange. The automated quotation system on the stock exchange is a critical piece of the infrastructure that helps drive the market. It provides a mechanism for buyers and sellers to find each other and trade, and it is an essential part of the overall functioning of the exchange.
The automated quotation system is owned and operated by the London Stock Exchange. It is one of the world’s largest and most well-known exchanges and plays a key role in global financial markets. On the SEAQ market of the London Stock Exchange, only stocks from the Alternative Investment Market (AIM) with limited liquidity are traded.
Services of a Quote-Driven Market
The stock exchange automated quotation system is based on a quote-driven market model. This means that prices are set by buyers and sellers rather than by the exchange itself. This allows for a more flexible and efficient market, as prices can be adjusted to meet the needs of participants.
Market makers or dealers who act as liquidity providers in a quote-driven environment handle stock buy and sell orders. In this structure, only quotations for stocks that dealers are prepared to trade are displayed. Transaction completion is assured because traders must match dealer quotes with bids and asks before executing an order.
There is a lot of competition in many OTC markets, such as the bond market, the forex market, and certain equity exchanges. The NASDAQ and London SEAQ are examples of stock exchanges using a quote-driven structure.
SEAQ Regulation
The AIM market is not a European Regulated Market (EURM). It is classified as MTF (Multilateral trading facility). Due to this, the SEAQ is allowed to continue although it is not MiFID compliant. LSE developed the SETSqy system, which replaced the SEAQ system in October 2007. More on this below.
Replacement
The stock market quotation market was once the go-to place for investors buying and selling stocks. However, this is no longer the case with the advent of automated quotation systems.
Automated quotation systems, such as those offered by the London Stock Exchange, provide a more efficient and cost-effective way for investors to trade stocks. These systems allow investors to trade stocks directly with each other rather than through a third party. This saves time and money but also allows for more price transparency and liquidity in the market.
The LSE's automated quotation system, known as “SETSqx” replaced the SEAQ and is one of the world’s most advanced and well-used systems. It offers a wide range of features and services that allow investors to trade stocks quickly and easily.
The LSE's automated quotation system has revolutionized the stock market, making it easier and more efficient for investors to trade stocks. As a result, the stock market has become a more liquid and competitive marketplace, which benefits all investors.
