‘In ten years cus­tomers have used Turquoise to match €7 tril­lion of shares ’

Yorkshire Post - Business - - FRONT PAGE - Dr Robert Barnes

Over the last 30 years, trad­ing on stock mar­kets has evolved from hu­man be­ings in­ter­act­ing on a phys­i­cal floor to to­day’s elec­tronic or­der books. One trad­ing sys­tem at the cen­tre of this tech­no­log­i­cal evo­lu­tion is Turquoise. It is the trad­ing plat­form ma­jor­ity owned by Lon­don Stock Ex­change Group in part­ner­ship with 12 global in­vest­ment banks. This month Turquoise cel­e­brates its tenth an­niver­sary of trad­ing.

Ef­fi­cient in­ter­ac­tion be­tween in­vestors and is­suers in the global cap­i­tal mar­kets has rarely been more crit­i­cal. The im­por­tance of de­liv­er­ing long-term in­vest­ment re­turns at min­i­mal cost can­not be over-stated in the con­text of cur­rent low in­ter­est rates and un­cer­tain eco­nomic growth. With a sin­gle con­nec­tion to Turquoise, users can trade more than 4,500 se­cu­ri­ties from 19 ma­jor Euro­pean and emerg­ing mar­kets.

Turquoise dis­tin­guishes it­self from Lon­don Stock Ex­change and our sis­ter ex­change Borsa Ital­iana. Each of these ex­changes op­er­ate pri­mary mar­kets, on which com­pa­nies can list se­cu­ri­ties, and sec­ondary mar­kets, on which in­vestors can trade these se­cu­ri­ties via re­spec­tive UK and Ital­ian lit or­der books. The clos­ing auc­tion re­mains the pre­serve of the pri­mary mar­kets. Turquoise solely op­er­ates a mar­ket for trad­ing a wide Euro­pean and emerg­ing mar­ket stock uni­verse on a choice of lit and dark or­der books.

While many peo­ple un­der­stand the con­cept of ‘lit’ or­der books that show the price and size of or­ders avail­able prior to a trade, an in­creas­ing number of in­vestors are learn­ing how to ac­cess the mar­ket with com­ple­men­tary trad­ing mech­a­nisms called ‘dark pools’. This is where firm or­ders are placed on a reg­u­lated or­der book but the price and size are not dis­played un­til af­ter the trade.

Turquoise’s dark pool, Turquoise Plato, pub­lishes in real time the price and size of a trade af­ter it matches, op­er­at­ing to the high­est UK and Euro­pean trans­parency reg­u­la­tory stan­dards. Turquoise Plato plays a sig­nif­i­cant and pos­i­tive role for large fi­nan­cial in­sti­tu­tions, in­clud­ing pen­sion funds, and there­fore pri­vate in­vestors, who ul­ti­mately in­vest in these funds. As in­vestors con­tin­u­ally seek bet­ter in­vest­ment re­turns, it is im­por­tant too for trad­ing plat­forms to carry on en­hanc­ing and adapt­ing their ser­vices.

Over 10 years Turquoise has con­stantly re­sponded to client needs, adding new as­set classes, stock sym­bols and geographic mar­kets, as well as col­lab­o­rat­ing with au­thor­i­ties and reg­u­la­tors world­wide to in­tro­duce new mech­a­nisms to buy and sell in larger sizes. The breadth of se­cu­ri­ties traded is stag­ger­ing. In 10 years, cus­tomers have used Turquoise to match more than €7 tril­lion of shares, with more than €5 tril­lion traded in the last five years. Al­most 3,000 stocks were ac­tively traded in Septem­ber 2018 on Turquoise ver­sus around 1,600 in the first quar­ter of 2013. This in­creas­ing number of ac­tive stocks demon­strates that in­vestors are seek­ing growth in in­vest­ment re­turns, not only through blue chips but also mid and small caps. These in­vestors are find­ing liq­uid­ity via Turquoise trad­ing mech­a­nisms de­signed in part­ner­ship and used by our com­mu­nity of do­mes­tic and in­ter­na­tional trad­ing mem­bers.

Grow­ing in­ter­est in emerg­ing mar­kets is re­flected fur­ther in the widen­ing uni­verse of Ex­change Traded Funds and Global De­pos­i­tory Re­ceipts, fi­nan­cial in­stru­ments rep­re­sent­ing shares in for­eign com­pa­nies from coun­tries such as Egypt, In­dia, South Korea and Rus­sia, avail­able to trade on Turquoise. This year, Turquoise was recog­nised by Hong Kong and Dubai reg­u­la­tors, al­low­ing lo­cal bro­kers to join our com­mu­nity of in­ter­na­tional trad­ing mem­bers.

A year ago, Turquoise em­barked on an ini­tia­tive to en­hance the trad­ing vol­umes of dy­namic mid-tier com­pany stocks quoted on LSEG’s in­ter­na­tional growth mar­ket, AIM. We made the con­stituents of the FTSE AIM UK 50 index, the fifty largest UK stocks on AIM, in­clud­ing ASOS and Fever-Tree, avail­able to trade on Turquoise.

In­vestors in AIM 50 se­cu­ri­ties now have ac­cess to the same suite of ad­di­tional Turquoise ex­e­cu­tion chan­nels that are avail­able via Turquoise for the big­gest UK listed blue chips and mid-caps in the FTSE 100 and FTSE 250.

Turquoise has a proud track record of in­no­va­tion in part­ner­ship with our cus­tomers and sup­port­ing ef­fi­cient cap­i­tal mar­kets. Whether it’s through giv­ing our cus­tomers ac­cess to high-growth com­pa­nies or fa­cil­i­tat­ing in­ward in­vest­ment flows into emerg­ing mar­kets, Turquoise has al­ways been at the van­guard of in­no­va­tion. We look for­ward to what the next 10 years will bring as the macro eco­nomic en­vi­ron­ment, fi­nan­cial mar­kets and in­vest­ment trends evolve.

For more in­for­ma­tion visit: www. trade­turquoise.com and @ trade­turquoise


ON THE RISE:Turquoise has a proud track record of in­no­va­tion in part­ner­ship with cus­tomers and sup­port­ing ef­fi­cient cap­i­tal mar­kets.

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