LHV clients are the first in Estonia to be able to trade bonds instantly


LHV was the first in Estonia to introduce an automatic order transmission system for transactions on the Baltic bond markets, making bond transactions on the Tallinn, Riga, and Vilnius stock exchanges much faster than before.

The introduction of the automatic order routing (AOR) system means that an order entered by an LHV client via the LHV mobile app in the Internet Bank and on an iOS device to execute a transaction on the Tallinn, Riga, or Vilnius bond exchanges will no longer be transferred to the LHV broker, who will manually enter it into the trading system of the exchange, but will be instantly routed directly to the corresponding stock exchange. The main advantage of automatic transmission is speed – once the order is transmitted, it reaches the stock exchange in less than a second.

According to Sander Pikkel, Head of Investment Services at LHV, central bank interest rate policy has also pushed up bond yields and this, in turn, has boosted investor interest in bonds traded on the Baltic stock exchanges. ‘As LHV’s goal has always been to offer its clients the best investment experience and brokerage service as a whole, the enhancement of our trading system with automatic bond orders was a logical and inevitable step for us,’ Pikkel said. LHV is the first in Estonia and in the Baltics to bring this solution to its clients.

In the first five months of 2024, 29.9% of all trades on the Baltic bond exchanges have been executed through LHV. This also makes them leaders in the bond market. When LHV automated the transmission of Baltic stock orders in 2006, it was warmly welcomed by clients. Pikkel expects a similar positive reaction this time.

As with the transmission of orders, the reporting of transactions is also very quick in the case of AOR. All trades executed on the stock exchange are also reflected in the portfolio within less than a second of the trade being executed. Other operations, such as modifying and cancelling orders, can be carried out just as quickly on the stock exchange.

Read more about the automatic transmission of orders on the LHV website

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