LEHMAN BROTHERS DEBUTS ALGORITHMIC TRADING IN INDIA AND LIQUIDITY CROSS IN HONG KONG

Posted August 6, 2008

HONG KONG – Global investment bank Lehman Brothers has begun offering algorithmic trading for shares traded on the National Stock Exchange (NSE) in India through its LMX Trading Strategies equity trading platform.

“This is a very exciting step for our firm and it illustrates our strong commitment to building a market-leading platform across the Asia-Pacific region,” says John Adair, Head of Equity Liquid Market Sales, Asia-Pacific at Lehman Brothers.

Lehman Brothers executed the first algorithmic order on August 4 through the new direct market access (DMA) trading offered by the NSE. “Recent regulatory changes have for the first time made this product possible in India,” says Pankaj Vaish, Head of Capital Markets, India, Lehman Brothers. “We can now bring Lehman Brothers' best-in-class electronic brokerage offering to one of the fastest-growing markets in the world.”

Lehman offers cash and volatility trading, prime brokerage services, equity research and the electronic trading platform in India’s equity market. The LMX Trading Strategies platform manages risk validations and controls to ensure full compliance with new regulations introduced for DMA trading in April.

In addition, Lehman Brothers has added shares traded on the Hong Kong Stock Exchange to its Liquidity Cross (LX) global proprietary crossing service. The LX platform matches buy and sell orders anonymously from across Lehman’s equity trading channels, executing trades at a price that is half of the bid-offer spread. The LX platform also offers access to dark liquidity pools of shares traded on the Hong Kong exchange.