October 2017 - LSEG to the Buy Side

Highlights

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
Conferences & Events

Small Cap and STAR Conference
09-10 October, London Stock Exchange

FIX Trading Roundtable
11 October, Frankfurt

AIM Conference
19 October, London Stock Exchange

CEO & CIO Lunch at the Exchange
20 October, London Stock Exchange

The Trade Awards
25 October, London

PWC Conference on Asset Management
09 November, Geneva

FIX Trading Conference
14 November, Paris

LAAG Working Group
23 November, Nairobi

Did you know that... FTSE Russell announced the results of the FTSE Annual Country Classification Review for 2017 in September. Poland, currently an Advanced Emerging market, is to be reclassified as a Developed market, while Kuwait, currently unclassified, to be included as a Secondary Emerging market. Saudi Arabia is close to upgrade and will be assessed again in March 2018, while China A-Shares to remain on the Watch List.