Because the users of the ESI BB are such rich and successful investors, they cannot possibly justify spending the 6p that ESI charges Investors for access to news stories etc. Therefore once someone has read a news story they think will be of interest to others, they often copy bits of the news message into a message they then post on the public (i.e. free) BB. Clearly this is a neighbourly gesture, (unless you are ESI), but you need to remember that the text shown as coming from the news story may have been amended by the person posting it. If you want the news from the horse's mouth, spend the 6p.
(thanks to DavidT)
5.2 An overview of the 'real' Market Eye
A lot of threads recently seem to indicate that people out there don't really know about Market Eye other than the free information given on their Web page. As such, here's a more detailed description of Market Eye and the services they offer.
Market Eye is a trade name of London Stock Exchange live information marketed under subscription by ICV. The Market Eye Web Page and associated BB can be used for free to get useful info. including the ability to download 5 years closing prices. Make sure you are set up to auto-configure to MS Excel (IE4) and it automatically loads it into a comma delineated database/spreadsheet (date, price) that you can save as something like "BBG prices 5yrs saved 300498" or whatever.
You can also print useful single screendumps by equity of current data plus last year's average daily closing price chart. HINT: If you use a laser printer, then configure your browser to "ignore background colours" before you print, otherwise you get price on white thread printed on solid black background, and you'll waste a lot of toner
You can also register for Market Eye's subscription web service (the "Premier" service) which you get free of charge if you are a Market Eye live data user. Otherwise subscription to the "Premier" Service is £20 per month, plus V.A.T., with other charges depending upon the services you require (e.g. real-time data at an extra £5.40 per month). This compares reasonably with ESI's "Silver" service for price, but I'm not sure how well they compare in usage. Anthony reckons on no better web-based news source than ESI. Markey Eye appears not to go back so far and is not so detailed.
The REAL Market Eye system consists of a Market Eye Terminal or Market Eye data card for your P.C. These systems supply LIVE feeds of all London Stock Exchange prices, reported deals, selected edited news etc. straight to your screen, and is a glorified Teletext service so NO phone/internet charges. You can run it all day for the cost of electricity (you've already got a TV licence, haven't you?).
The Market Eye Terminal costs around £1.8k annual RENTAL excluding V.A.T, and at present there's a bargain available (may not last much longer). The Terminal System is also available for OUTRIGHT purchase (£445.00), then you pay for maintenance & data annually. This system is vintage 80's - Microvitec (disappeared from market in last few weeks - anyone know why?), and is the old original 1MB colour standard - same as teletext. This is a bargain at that price, becaise you get live daily data free (no phone bill) and can then top up with news, etc. from the Premier site and/or ESI in the evening at cheap phone rate. This is Anthony's own setup, though he bought the kit new at much higher cost back in 1990.
The current product is for a PC integrated card version of the Terminal, along with chartist software. This again feeds live via your "free" TV aerial, or you can download data from teletext or the internet - various options and costs are available. e.g. daily closing prices cost roughly 50% of live continuous feed; you can also get real time LIFFE Futures and Options and SEAQ for additional cost. The PC Card costs £395.00p + V.A.T., with extra costs for the software licence, Stock Exchange data, etc. Reckon on approx £1350.00p annual cost for actually getting the goods. Minimum contract term 12 months, then I think approx 3 months notice of termination required.
By using Market Eye you get instant live feed down the TV aerial (saving 5K on your phone bills???) of each reportable trade, prices + set limits. So if any of your hundred's of hot ESI BB tips moves 1p, you get an audible bleep, and you could then use ESI when you see an announcement to research news etc. You get announcements immediately in edited form on Market Eye, or could get it in full 20 mins later on ESI (Bronze). Plus you get the Market Eye Premier web site access giving more detailed screen dumps, and instant charts etc, etc. The main point is that when an A comes up, ESI should have the full text available 20mins later for 6p (with Bronze subscription). To get any better than that you need a professional dealing information service & kit, and commensurate costs.
If you are into real time dealing, I suggest you go for a stand-alone Market Eye Terminal for real time prices whilst still available, then use your PC for your share analysis software/holdings database/ESI Bronze service and news access (only incur online phone charges when you need it). As a MarketEye user, you get their Premier service FREE, so when you want to use that you only incur phone call charges whilst accessing.
For serious "amateur" traders using this BB, compare phone usage and depending upon ESI's service and response for real time info. with "free" 24hr live information from a Market Eye stand-alone Terminal feed (free once you pay the annual subscription)
ROUGHLY, IF YOU SPEND MORE THAN 1.63 HOURS AVERAGE PER DAY ONLINE TO GET MARKET INFO, THEN A 'REAL' MARKET EYE SYSTEM MIGHT BE OF INTEREST TO YOU.
To contact Market Eye direct, you can try their snailmail address:
Market Eye Administrator Datastream/ICV Skandia House 23 College Hill Cannon Street LONDON EC4R 2RA
(Sales: Telephone 0171 398 1000)
(thanks to anthonyjb)
5.3 What do those pesky Trade Type letters on Market Eye mean?
On the Market-Eye site, trade prices can also be accompanied by letters that give details about the trade. These letters are as follows:
Information taken from Market Eye site (http://www.marketeye.co.uk)
| Letter(s) | Meaning |
| AI | Automated Input Facility - If reporting that a member firm has disabled its automated input facility in response to a request from the Exchange. |
| AT | Automatic Trade - An automatic trade generated by the system through automatic execution. This trade type should not be input by participants into the system. |
| B | Broker to Broker - If reporting a transaction between two member firms where neither firm is registered as a market maker in the security in question and neither is a designated fund manager. This indicator shall also be applied by broker when buying or selling domestic equity market securities through a broker which is not a member firm. |
| C | Bargain Condition |
| CT | Contra Trade - If reporting a contra trade in a previously automatically executed trade through the order book. |
| D | Delayed Trade |
| K | Block Trade - If reporting a transaction using the block trade facility. |
| L | Late Trade |
| LC | Late Trade Correction - If reporting a correction submitted more than three days after the trade date or where deferred publication is permitted at any time after the trade report was submitted to the Exchange reporting system. |
| M | Market Maker to Market Maker including through IDB - If reporting a transaction between two market makers registered in the security in question including those executed through an inter dealer broker or a public display system. |
| N | Non Protected Portfolio - If reporting a non-protected portfolio transaction or a fully disclosed portfolio transaction. |
| NM | Not to Mark - If reporting a transaction where the Exchange has granted permission for non-publication. |
| NR | Non Risk (SEATS Based Segments only) - If reporting a non-risk transaction. |
| O | Ordinary Trade (system will delay if over 6 x normal market size) - If reporting a transaction that is not covered by any of the trade types listed below. |
| P | Protected Portfolio - If reporting a protected portfolio transaction or, if reporting a trade resulting from a worked principal agreement for a portfolio transaction. |
| PA | If reporting a protected transaction at the time that protection is applied. |
| PN | Worked Principal Portfolio Notification - When reporting a transaction that was effected at a price based on a volume weighted average price over a given period. |
| R | Riskless Principal Transaction at Different Price - If reporting a riskless principal transaction with two non-members, where the two transactions are executed at different prices or on different terms (this requires two separate trade reports). |
| RO | Result of Option - If reporting a transaction which resulted from the exercise of an option. |
| RT | Risk Trade (SEATS Based Segments only) - If reporting a risk transaction. |
| SW | Stock Swap - If reporting transactions comprised in a stock swap or stock switch (one report is required for each line of stock swapped or switched). |
| T | If reporting a single protected transaction. |
| TS | If using a test security to test trade reporting. |
| V | Converted Price |
| VWAP | Volume Weighted Average Price - This is the average price of a share for the day so far. For each trade you multiply Vol X Price then divide by the total number of shares traded for the day. |
| WN | Worked Principal Notification - If notifying the Exchange that a member firm has entered into a worked principal agreement for a single security. |
| WT | Worked Principal Trade - If reporting the trade resulting from a worked principal agreement for a single security. |
| X | Cross at the Same Price - Where the transaction was effected as an agency cross or a riskless principal transaction at the same price on the same terms (this requires one trade report). Note: The Exchange may amend these values at any time following five working days' prior written notice. |
5.4 And what about those ones near the EPIC code on the Equity pages?
Fairly simple this one, as there's only three...
| Letter | Meaning |
| X | Ex-dividend (could be xd, or XD) |
| R | Regulatory announcement |
| A | Company announcement |
5.5 How do you know whether trades have been buys or sells?
No, there's no internet site or otherwise that lists the types of Trades (although that would be nice....). However using the values shown on the Market-Eye site it is usually possible to work out whether a trade was a buy or sell.
It lists the price at which the last trade was done. Usually this will be the same as the bid/offer price so it is obvious what has happened. e.g. if the last trade was at 705p and the shareprice is quoted as 695/705 then the last trade was almost certainly a 'buy'. If the trade is between the bid and offer prices a bit more guess-work is required. (No prizes for guessing that Shield is the example price here!).
(thanks to Stewart)
5.6 Investment Trusts - what's with these different types of shares?
Investment Trusts may be boring to some, but some ITs are at such a discount to NAV at the moment that they're a reasonable long-term investment, and should probably make up part of a balanced portfolio. People get confused by the different types of shares available in each IT however. These are the three types sold:
Zero Dividend Preference Shares provide a guaranteed growth. They are not entitled to any of the Trusts Income, but are paid out first when the Trust is wound up. As such they are considered very low risk, and hence could be the choice to make for a childs inheritance, etc. Historically they have returned slightly above Gilts.
Ordinary Shares receive all the Trusts Income (dividends) and if things go well in the markets they can provide substantial growth also (due to capital growth of the underlying shares). They have a hurdle rate to meet however, and remember that the Zeros must be paid out first.
Units are a blend between the two; 1 Ord share and 1 Zero. Sort of like eating a 2 scoop ice cream cone with one flavour you like and one you don't !!!
(thanks to FSE)
5.7 How come the bid/offer spread can be so big with low price shares?
This is a fairly straightforward discussion: there are of course many nuances that can be added to what is said below, but this is a fair summary of the basics. The discussion below does not cover SETS stocks.
A wide spread is usually caused by there being only one or two market makers in a small company. If there is one MM, he has no competition and can really quote what he likes, within reason. If there is one MM, the Normal Market Size (NMS) will usually be very small. If there are 2 MMs, neither market maker will want to stick his neck out unless he is particularly keen on the stock (in which case he will bid up, narrowing the apparent spread by making a higher bid and offer price than the other market maker) or he is particularly negative about the stock (in which case he will have a lower bid and offer price than the other MM). So the MMs will often have the same prices and thus there is no narrowing of the spread.
More liquid stocks - those with larger market caps - will usually be traded by more MMs, and will usually have narrower apparent spreads, mainly because there is more frequent trade in them and thus more competition between MMs (and thus the MMs' margin is smaller) and also because there is more likely to be differing opinions on the stock, so there will usually be one or two MMs bidding up.
Of course, more liquid stocks can occasionally have wide spreads, usually in special situations where news has been announced or is expected, and no-one is entirely sure of the impact on the stock. Also, poor market conditions (e.g. in a rapidly falling market) usually encourage MMs to reduce their bids and fall in line with each other.
(thanks to the much-missed TD)