October 2017 - LSEG to the Buy Side

Highlights

• Record €1.68bn weekly and €6.05bn monthly value traded via Turquoise Plato Block Discovery™ 
• London Stock Exchange share of lit trading 72% in September
• Turquoise Lit Auctions™ received regulatory approval and set for Q4 2017 launch
• Franklin Templeton issues first ETFs on London Stock Exchange
• Borsa Italiana welcomes Pirelli, the biggest continental European IPO in 2017

Turquoise Plato™

• September saw the highest ever monthly value traded on Turquoise Plato Block Discovery™ at €6.05bn
  - +10% on previous record of €5.49bn in July 2017
• Record weekly value traded resulting from Turquoise Plato Block Discovery™ of €1.68bn between 11-15 September
• Following Turquoise Market Notice, Turquoise Plato Block Discovery™ periodically publishes traded volumes on the Trade Adverts section of the Bloomberg IOIA page
  - Aggregated volumes are now updated twice per day – around midday and 3pm (UK Time)
  - TPBD is used as the four-letter acronym to distinguish the venue, and volumes are reported in the Crossed column (see below)

(ABOVE) Snapshot of Bloomberg IOIA page Trade Adverts: TPBD in ‘Crossed’ column

• Graph below reflecting that Turquoise Plato Block Discovery™ had the largest number of block trades in LIS Band 5 stocks last week

(ABOVE) Data and graph from Fidessa’s Top of the Blocks: Block Trading

Report: http://fragmentation.fidessa.com/venuestats/blockvenues/ (The report includes all trades larger than the MiFID I large in scale LIS threshold on the selected venues)

• On 20 September, Turquoise announced it plans to launch frequent transparent auctions
  - Turquoise Lit Auctions™ will be pre-trade transparent & MiFID II compliant
  - Auction mechanism has already obtained regulatory approval for Q4 2017 launch

London Stock Exchange Lit Order Book

• London Stock Exchange average share of UK lit market trading for September 2017 was 72%
  - The highest monthly share since June 2009 (73%)
  - Share of UK lit trading reached 80.4% on 15 September

Borsa Italiana Lit Order Book

• Borsa Italiana's average share of Italian lit market trading for September 2017 was 81%

ETFs

• On 27 September, Franklin Templeton listed 4 ETFs on London Stock Exchange
  - This is the third new ETP issuer in 2017, with GF International (China) and Fidelity also listing products
  - 94 new ETPs admitted to trade on London Stock Exchange in 2017
• €843.1mln traded on Borsa Italiana's ETFplus market on 7 September
  - This surpassed the previous record of €762.6mln

UnaVista

• FCA approves London Stock Exchange as an Approved Reporting Mechanism (ARM), through its UnaVista platform
  - Offering transaction reporting services for its customers to help them in meeting their reporting obligations under MiFIR

Derivatives

• Total IOB derivatives volume on LSEDM in September was 388,828 lots (vs. 211,562 lots in August 17)
• Already a record year for FTSE MIB Dividend Index Futures which traded 16,000 contracts YTD
  - Societé Générale and BNP Paribas support liquidity as primary market makers
• IDEM welcomed ICAP as the first Non-Executing Broker
  - IDEM's liquid order books are supported by 24 global market makers
• CurveGlobal celebrates first anniversary
  - 1.5mln lots traded since launch in September 2016
  - 40% of this achieved in the last 3 months

Primary Markets

• On 04 October, Pirelli became the biggest continental European IPO to date in 2017
  - Pirelli raised €2.28bn, valuing the company at €6.5bn
  - This marks 30 IPOs on Borsa Italiana's markets since the beginning of the year
• 6 IPOs on London Stock Exchange markets in September
  - 3 on AIM raising £174mln and 3 on the Main market raising £223.3mln