Which exchange does a sale of an overseas stock execute on?

If I buy a share of LULU, which exchange does the sale execute on?

It’s not important, just mildly interested to know where the stock executes. What is the difference between these stocks (or stock codes)? If the answer is “Look to you it’s all the same thing don’t worry about it”, good stuff. :+1:

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Great question! Replying to follow the answer

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Just change the topic control from normal to watching at the bottom of the page

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I expect I am not alone in this community in that I have no clue about stuff like that. I have to trust freetrade and what I see on the app. I do of course, otherwise I wouldn’t be trading here. But I am thirsty for knowledge so I’m curious to know the answers. Thanks for asking.

Can you state the ISIN listed in the contract note?

Hi @xnox it was US5500211090

That is Lululemon athletica Inc stock, a Canadian company with primary listing on Nasdaq (quoted in USD) and secondary listings on LSE (quoted in USD, cleared in Germany, see country of share register) and Boerse Berlin (quoted in EUR). So the contract note appears to be legit, and it’s the same Lululemon stock. This is normal. I did transfer my Intel Ordinary stock from an American broker to a UK one to then later sell it on LSE.

A single ISIN can be listed on many venues and clear in many places, despite being quoted in different currencies. As long as the underlying ISIN (share class) is identical / interchangeable.

In addition to primary, and secondary exchanges one can also execute trades off-market, and privately. Depending on exchange rules, such trades may still be required to be reported.

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Very useful info thanks!

OK this gets a little complicated but ultimately nothing to worry about or even to think twice about.

Firstly, are you sure the ISIN starts with DE? It should be US, I’m unsure why that wouldn’t be US if you’re buying Lululemon.

As for the venue, this is expected. LSE-MTF is the London Stock Exchange’s window to other exchanges, the MTF stands for Multilateral Trading Facility and allows brokers/market makers to access other exchanges using their ‘home’ exchange. For anybody that cares, the system is designed for FX, CDS and bond trading.

Its probable (but I can’t be sure) that Freetrade uses a UK based market-maker that uses the MTF to execute on overseas trades. Again, to reiterate, this is totally normal practice and nothing to worry about at all its just a unique quirk of how the global financial system works.

To answer your question, the trade would execute on LSE (via LSE-MTF) but the shares are traded on NYSE.

Your question around ISIN has me stumped though - would you mind pasting the ISIN from your contract note?

@ytsruh ^ which now makes me think that yahoo finance is wrongly telling me that that’s Berlin.

Anyway.

Sorry, didn’t see that. Yes looks like it was listed on NYSE then.

Its an interesting system quirk that you brought up though and good for people to be aware of this.