Turquoise, the pan-European MTF, today announces the launch of Turquoise Block Discovery, a new service enhancing its existing Midpoint Dark Book. The service is designed to bring together large block orders in a truly neutral, passive environment. Developed in close partnership with buy and sell-side market participants, it will be supported from launch by seven major brokers including: Barclays, Instinet, ITG, JP Morgan, Morgan Stanley, Neonet and Societe Generale. Bank of America Merrill Lynch, Citi, Deutsche Bank, UBS and others are expected to join shortly.
Robert Barnes, CEO Turquoise said:
"Turquoise Block Discovery™ is an innovation, enhancing the increasingly popular Turquoise Uncross which has seen volumes grow more than 200 per cent over the last year. We've worked closely with the whole community, responding concretely to buyside demand for improved block trading functionality, well ahead of MiFID II implementation."
As well as brokers, the buy side community has also given its support to Turquoise Block Discovery™. This includes a spectrum of long only buys side asset managers with the stated interest in improving the efficiency of European market structure and the ability to trade larger block size. Firms include Allianz Global Investors Europe, AXA Investment Managers, Baring Asset Management, Cedar Rock Capital, Deka Investment Frankfurt, Newton Investment Management, T Rowe Price, Troy Asset Management and Union Investment Frankfurt.
Adam Toms, CEO, Instinet Europe. "The demands of our clients for us to seek out liquidity, combined with an evolving European regulatory landscape which is moving towards the use of larger block trades, make continued development in this area essential. Instinet is an award winning aggregator of liquidity and sees this new Turquoise Block Discovery™ service as an innovative and timely addition to the market. It provides us with the ability to place a conditional order to a venue offering increased chances of finding a larger block of dark liquidity, while simultaneously being able to continue to search other liquidity pools."
Brian Pomraning, Head of European Equities Execution Services at J.P. Morgan
"J.P. Morgan's connectivity to this new service will give our institutional clients further access to block liquidity and complements our strategy of offering conditional order-types in JPM-X. This partnership reflects our commitment to achieving the highest possible quality of execution for our clients."
Mark Goodman, Head of Quantitative Electronic Services (QES), Europe, Societe Generale
"We are delighted to offer our clients access to Turquoise Block Discovery™, particularly as one of the early adopters able to leverage the full Block Indicator functionality. A key concern of our clients has been to source block liquidity, and we believe that as an exchange-owned, neutral platform, Turquoise has a significant chance of delivering this."
Nej D'jelal, Head of Equities Electronic Trading Product, EMEA, Barclays
"We are pleased to offer Turquoise Block Discovery™ as part of our commitment to provide more liquidity seeking options to our clients."
How Turquoise Block Discovery™ works:
The new service significantly improves users' ability, within the Turquoise Midpoint Dark Book, to trade larger block orders by matching Block Indications. On identifying potential matches, the service requires participants to send firm qualifying block orders to Turquoise Uncross™, maximising available liquidity for customers of both services. Robust reputational scoring and surveillance will monitor the conversion of Block Indications into firm orders to optimise the use of the service.
Turquoise Uncross™ is a series of randomised uncross events, which take place between 5-45 seconds (the frequency depending on the liquidity of the security). Those executing trades in Turquoise Uncross™ are able to minimise interaction with aggressive, low-latency trading strategies as only resting, passive orders are made available to match. The service's ability to match larger block orders successfully has been confirmed as best in class by independent venue performance analytics firm, LiquidMetrix.
Turquoise Block Discovery™ mechanism explained:
For further information:
Turquoise is the pan-European equities multilateral trading facility majority owned by London Stock Exchange Group in partnership with the user community. Turquoise provides members with a single connection to trade shares, depository receipts and exchange traded funds of 18 European countries with an efficient trading and interoperable post-trade model that delivers economies of scale. Members include banks, brokers, specialist trading firms and retail intermediaries.
About London Stock Exchange Group:
London Stock Exchange Group (LSE.L) is a diversified international exchange Group that sits at the heart of the world's financial community. The Group can trace its history back to 1801.
The Group operates a broad range of international equity, bond and derivatives markets, including London Stock Exchange; Borsa Italiana; MTS, Europe's leading fixed income market; and the pan-European equities platform, Turquoise. Through its markets, the Group offers international business, and investors, unrivalled access to Europe's capital markets.
Post trade and risk management services are a significant and growing part of the Group's business operations. LSEG operates CC&G, the Rome headquartered CCP and Monte Titoli, the significant European settlement business, selected as a first wave T2S participant. The Group is also a majority owner of leading multi-asset global CCP, LCH.Clearnet.
The Group offers its customers an extensive range of real-time and reference data products, including Sedol, UnaVista, Proquote and RNS. FTSE calculates thousands of unique indices that measure and benchmark markets and asset classes in more than 80 countries around the world.
London Stock Exchange Group is also a leading developer of high performance trading platforms and capital markets software. In addition to the Group's own markets, over 40 other organisations and exchanges around the world use the Group's MillenniumIT trading, surveillance and post trade technology.
Further information on London Stock Exchange Group can be found at www.LSEG.com