Retail Service Provider (RSP) Network
The Formal Definition
The dominant electronic quotation and execution infrastructure used in the United Kingdom equity market, where retail brokers poll competing market makers via private electronic links to secure guaranteed quote prices before executing trades.
RSP Best Price = min_{Registered Market Maker i} [ Quoted RSP Ask_i ] ∪ max_{Registered Market Maker i} [ Quoted RSP Bid_i ]
Cole Barrett's Reality Check
The Unvarnished Bottom Line"If you buy shares in London, your order probably never touches the London Stock Exchange's central electronic book. Instead, your broker runs your trade through the UK RSP network. They ping five or six market makers for a private quote, pick the best one, and fill your order in seconds. It provides steady, guaranteed execution, but it cuts your order off from lit exchange liquidity."
Interactive Simulator: Test the Math
Real-World Example: Scenario Breakdown
Examining the real numbers for: An investor purchasing £20,000 worth of FTSE 250 mid-cap shares through a UK retail investment platform
| Execution Metric | Multi-Quote RSP Network User | Single-Dealer Captive Desk User |
|---|---|---|
| Fee / Rate | £5.95 flat ticket fee | £9.95 legacy bank fee |
| Spread / Buffer | Broker pinged 8 competing market makers on the RSP network for instant quotes | Broker routed through a single captive dealer desk without multi-quote competition |
| Execution / Status | Secured an electronic quote 4 pence inside the London Stock Exchange's displayed public spread | Filled at the wider headline spread price, receiving zero competitive quotes |
| Total Cost / Result | Competitive execution pricing via the UK RSP network | Suffered wider execution spreads due to lack of dealer competition |
How Brokers Weaponize This Term
When using a UK-based brokerage, verify how many market makers participate in their RSP polling loop. Leading UK brokers poll at least 15 to 20 market makers for each quote to ensure true competitive pricing.
Broker Evaluation Matrix
Cole Approves
AJ Bell: Provides institutional access across the UK RSP network with multiple competing market makers, combined with direct LSE order book access for active traders.
Read Audit →Cole Flags / Avoids
Tied Regional UK Banks: Routes retail stock orders through single in-house dealing desks with minimal RSP price competition.
View Trap Details →Frequently Asked Questions
How does the RSP network differ from the LSE SETS order book?
SETS is the London Stock Exchange’s public, lit central limit order book. The RSP network is an off-exchange retail quote system where market makers compete to give retail brokers guaranteed prices on smaller order sizes.
What happens if an order is too large for the RSP network?
If an order size exceeds the market maker's Maximum Guaranteed Size (MGS), the trade drops out of the RSP network and must be worked manually on the lit SETS order book.