New LSEG derivatives market launches with FTSE Super Liquid index futures

  • London Stock Exchange Derivatives Market goes live
  • New product, FTSE UK Large Cap Super Liquid index futures tradable from 7 October
  • UK, IOB and Norwegian derivatives now trading on a Regulated Market of an RIE

 

London Stock Exchange plc has today completed its acquisition of Turquoise Derivatives, the derivatives business of Turquoise Global Holdings Limited (“Turquoise”). The platform has been renamed London Stock Exchange Derivatives Market.

The market now operates as part of a Regulated Market of a Recognised Investment Exchange (RIE), allowing customers to improve the efficiency of their clearing and margin arrangements in light of the requirements under the European Market Infrastructure Regulation (EMIR).

From 7 October 2013 a new contract, FTSE UK Large Cap Super Liquid index (FTSE UK SLQ) futures will be available to trade on the platform. The index, which is designed and managed by FTSE Group, selects the most liquid stocks from within each industry in the FTSE UK large cap index. A number of market makers, including BNP Paribas and Timber Hill Europe, have committed to supporting the new product. Other institutions including Barclays, Goldman Sachs and Nomura have confirmed they will provide client access to the product. The new contract is eligible for cross-margining with FTSE 100 index futures offered on the same trading venue. The new derivatives market will continue to offer trading in a range of UK, Russian and Norwegian equity derivatives.

Nicolas Bertrand, Head of Equity and Derivatives Markets at London Stock Exchange Group, said:

“This marks an important step in growing a strong, diverse derivatives business in the UK. The Super Liquid futures will provide our derivatives customers with an innovative, alternative way to manage risk on the UK equity market.

“From a Group perspective, this builds on the successful progress of our Italian market, IDEM, which has seen the roll out of a number of new products in recent months, including durum wheat futures, and single stock dividend futures.”

Sudir Raju, Managing Director at FTSE Group, said:

“The FTSE UK Large Cap SLQ index reflects the performance of leading UK stocks, with a focus on liquidity and ease of replication. It represents a further expansion in the type and range of innovative and transparent products FTSE is helping trading participants to access.”

 

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For further information, please contact:

  

Media

Jonny Blostone/ Lucie Holloway

+44    (0)20 7797 1222

 newsroom@lseg.com  

 

Notes to editors:


The 35 constituents of the FTSE UK Large Cap Super Liquid index as of 30 September are:

Barclays

Rio Tinto

British Sky Broadcasting Group

BAE Systems

Royal Dutch Shell B

National Grid

BP

Tesco

WPP

British American Tobacco

Unilever

Centrica

Aviva

Wolseley

BHP Billiton

Diageo

Royal Dutch Shell A

SABMiller

Lloyds Banking Group

Glencore Xstrata

ARM Holdings

Morrison (WM)   Supermarkets

Experian

Anglo American

Pearson

Rolls-Royce Holdings

GlaxoSmithKline

Prudential

Vodafone Group

Compass Group

Reed Elsevier

HSBC Holdings

CRH

Royal Bank Of Scotland Group

Standard Chartered

 


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 MTF, 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 part of the Group’s business operations. LSEG operates CC&G, the Rome headquartered CCP and Monte Titoli, the 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, as well as access to over 200,000 international equity, bond and alternative asset class indices, through LSEG’s FTSE business, one of the world’s leading index providers.

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 30 other organisations and exchanges around the world use the Group’s MillenniumIT trading, surveillance and post trade technology.

Headquartered in London, United Kingdom with significant operations in Italy, France, North America and Sri Lanka, the Group employs approximately 2,800 people.

Further information on London Stock Exchange Group can be found at: www.lseg.com