January 2018- From LSEG to the Buyside

Highlights

Turquoise Plato™ and DVCs 

  • We expect the effective date for ESMA Double Volume Caps (DVCs) to be implemented on Friday 12 January 2018
    - Turquoise will reject orders that are sub Large in Scale (LIS) for the capped-out stocks from the implementation date
  • Turquoise will continue to accept orders in all securities equal or greater than Large In Scale under the LIS waiver into the Turquoise Plato™ order book and Turquoise Plato Block Discovery™
  • To facilitate trading at the midpoint for sub LIS orders on securities that are capped out, Turquoise has launched Turquoise Lit Auctions™
    - Mechanism does not require the Reference Price Waiver to operate
    - Allows investors to trade at the midpoint of the Primary Market’s Best Bid and Offer
    Turquoise Lit Auctions™ MIC is TRQA

  • Since adding FTSE AIM 50 stocks to Turquoise on 16 October, €380mln value traded
    - 61% by value traded at midpoint via Turquoise Plato, saving half the bid offer spread
    - ASOS.L is the most traded AIM instrument, by both value and number of trades

Mid Point Pegged Orders

  • Resting hidden LIS orders are pegged to SETS midpoint, eliminating market data risk of latency arbitrage
    - User defined MES
    - Automatically parking
    - Ability for resting orders to interact with both lit and dark contra liquidity

MiFID II

  • London Stock Exchange has published an analysis of the ESMA Transitional Transparency Calculations (TTC) for equities (please feel free to contact hstein@lseg.com for a copy)

London Stock Exchange and Borsa Italiana Share of Lit Trading

  • London Stock Exchange share of UK lit market trading for December 2017 was 74.3%
    - Up from 66.6% in December 2016

  • Borsa Italiana share of Italian lit market trading for December 2017 was 79.5%
    -Down from 84.3% in December 2016 

Derivatives

  • CurveGlobal recognised as "Best New Exchange" at the 2017 FOW Awards
    - Open interest has doubled in the last six months reaching a record-breaking 167,368 contracts
  • 3.66bn IOB lots traded on LSEDM in 2017, up 220% on 2016 volumes (1.14bn lots traded in 2016)

Primary Markets

  • London Stock Exchange and Borsa Italiana most active primary markets in Europe in 2017
  • 106 IPOs raise £15bn in London in 2017, compares to 65 in 2016
    - +63% by number of IPOs, +164% by value of IPOs year-on-year
    - London's IPOs became even more international - nine out of largest ten by value were international
    - 20 listings from North America, compared to 3 in 2016
    - London had a strong year for fund and REIT IPOs in 2017, with more listings than any other market in the world, and 3 times as much money raised as in 2016

  • 39 new companies listed on Borsa Italiana in 2017, the highest number since 2000, raising €5.4bn

(ABOVE) Borsa Italiana's IPOs of 2017. Click to watch the video 

ETFs

  • December 2017 was the busiest month in 2017 for ETP listings in London, with 37 new listings
    - London Stock Exchange welcomed new issuer Leverage Shares who listed 25 single stock ETNs
    - 133 ETFs and 44 ETCs/ETNs have been listed on London Stock Exchange in 2017

  • 147 new instruments listed on ETFplus in 2017

Conferences & Events

Italian Equity Roadshow

15-16 January, London

Trader Forum

17-18 January, Miami

LSE & Turquoise Edinburgh Roadshow

15 February, Edinburgh

Did you know that...

The FTSE Italia Brands Index went live on 18 December 2017. The new index is comprised of the initial 22 constituents in the FTSE Italia All-Share® Index that were included in the Italian Listed Brands showcase,  defined by Borsa Italiana in October 2017.