Turquoise confirms June trading in FTSE 100 futures

  • First new product launch for Turquoise Derivatives platform
  • FTSE 100 Futures tradable from first week in June
  • First in Europe to offer maker/taker pricing
  • Delivers on Turqouise and LSE Group's stated strategy to expand its existing derivatives presence
  • SOLA technology upgrade to complete in May, ahead of launch

Turquoise Derivatives today announces that FTSE 100 Index Futures will be available to trade from the first week in June, subject to FSA approval.

In preparation for the launch, existing members, Turquoise customers, Independent Software Vendors and General Clearing Members are already testing the upgraded SOLA platform to ensure readiness for go-live. The SOLA platform is co-located next to the Turquoise and LSE cash equity markets.

Turquoise Derivatives will be the first derivatives market in Europe to employ a "maker/taker" tariff model, offering a 5p per contract rebate for passive flow and a 20p per contract fee for aggressive flow. This compares with a standard 25p per contract charge on alternative platforms. Turquoise will be the first to cap charges for OTC block trades in index futures products and to reduce per-contract clearing costs which will also be one third lower than competitors' charges.         

Adrian Farnham, CEO of Turquoise said:

"Participants are crying out for a genuinely competitive derivatives market in Europe, and Turquoise Derivatives is proud to be leading the charge in making that a reality. Brokers see this as a real opportunity to provide access to end-investors. We will build a competitive and open framework that will challenge the existing approach of other markets, bringing new trading opportunities and improved efficiencies to our customers.

"With key market makers, proprietary trading firms and banks confirmed and ready to support our launch, an innovative and competitive pricing model, further new products in the pipeline and a real opportunity ahead of us, we look forward to attracting a broad pan-European customer base to Turquoise Derivatives."

The introduction of trading in FTSE Futures is the first step in Turquoise Derivatives and London Stock Exchange Group plc (LSEG) plans to broaden its existing derivatives presence. LSEG has already successfully grown its Italian derivatives market, IDEM; has firmly established a presence in Russian stock options through IOB derivatives; and supports the development of the Norwegian derivatives markets through its partnership with Oslo Bors.

The integration of EDX into Turquoise, to create Turquoise Derivatives, will complete at the beginning of May. This will provide Turquoise with a derivatives platform upon which to develop a pan-European offering whilst continuing to add further emerging markets products.

Turquoise Derivatives will use the model established by EDX, whereby CC&G provides clearing services and clearing technology and LCH.Clearnet provides central counterparty services. Subject to the granting of appropriate consents, under this arrangement Turquoise is aiming to offer fungibility and/or margin offset with products traded on other markets that are likewise pro-competition.  
 

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For further information, please contact:

Lauren Crawley-Moore                     Press Office +44 (0)20 7797 1222 
                                                     newsroom@londonstockexchange.com

Notes to editors:

1. Turquoise intends to use the model currently used for the EDX market place, whereby CC&G provides clearing services and clearing technology and LCH provides central counterparty services as follows:

  • CC&G clearing services and clearing technology - covering netting, position management, clearing activities, settlement price calculations, exercise and assignment processing and corporate action processing 
     
  • LCH Clearnet central counterparty services - covering initial margin calculations, fee billing, collateral placement/deposit, default and settlement services

2. Reference to products and product pipeline contained in the release will be subject to obtaining relevant trading licences.

3. Adrian Farnham's recently announced appointment as CEO of Turquoise is subject to FSA approval. 
 

About Turqouise Global Holdings Limited:

Turquoise is a market leading Multilateral Trading Facility (MTF) giving customers access to pan-European and US lit and dark equity trading in more than 2,000 global securities. Unique functionality in Turquoise's Integrated Book combines visible and non-displayed orders to deliver increased likelihood of execution and price improvement. Turquoise's Midpoint Book is an entirely non-displayed execution service, where trades execute at the midpoint of the bid-ask spread. Turquoise also operates TQ Lens, a non-displayed liquidity routing service, which offers clients access to the otherwise inaccessible internal crossing networks of their peers. Turquoise has been majority owned by the international diversified exchange business, London Stock Exchange Group, since February 2010. 

About London Stock Exchange Group:

London Stock Exchange Group (LSE.L) sits at the heart of the world's financial community. 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 Turquoise, offering pan-European and US lit and dark equity trading. Through its markets, the Group offers international business unrivalled access to Europe's capital markets.

The Group is a leading developer of high performance trading platforms and capital markets software and also offers its customers around the world an extensive range of real-time and reference data products and market-leading post-trade services. 

Headquartered in London, United Kingdom with significant operations in Italy and Sri Lanka, the Group employs around 1,500 people. Further information on London Stock Exchange Group can be found at www.londonstockexchangegroup.com.