Turquoise Europe

  • Turquoise Europe

Ahead of the UK’s withdrawal from the European Union (EU), Turquoise continues to make all necessary preparations to ensure adequate contingency arrangements are in place. Earlier this year, Turquoise submitted an application to the Autoriteit Financiële Markten (AFM) in The Netherlands to operate as an MTF (Turquoise Europe) should an EU location be needed.

In the event these contingency arrangements need to be exercised, all current products traded on Turquoise would be migrated to Turquoise Europe with the exception of UK, Swiss and US stocks which would remain on Turquoise’s existing MTF in the UK. Subject to all relevant regulatory approvals, this would allow Turquoise to continue to service its clients in the EU in the event of a “Hard Brexit” i.e. if the UK was to leave the EU without an adequate transition deal and/or without relevant equivalence decisions to allow cross-border services between the EU and UK to continue. In such a scenario, Turquoise Europe is expected to be operationally live in Q1 2019.

Turquoise Europe Rule Book

Turquoise has now published the Draft Rule Book for Turquoise Europe which closely mirrors the existing Turquoise Rule Book.  If members and interested parties have any questions or comments on the proposed Rule Book, these can be sent to compliance@tradeturquoise.com.  The Turquoise Europe Rule Book will be finalised subject to receipt of all relevant regulatory approvals. 

Access to Turquoise Europe

Turquoise has published the membership documentation for Turquoise Europe and invites current Turquoise members and eligible firms to apply for membership of the new MTF.  Acceptance of Turquoise Europe membership applications will be subject to applicants meeting the eligibility criteria for membership and Turquoise Europe receiving all relevant regulatory approvals to operate as an MTF. Turquoise welcomes applications for Turquoise Europe membership from UK investment firms, however, acceptance of these applications will be subject to the ability of Turquoise Europe under relevant legislation to do so and/ or the provisions of any Brexit deal.

 

In order to access Turquoise Europe, firms should complete the following steps:

    1. Submit Turquoise Europe Membership Application

The membership documentation for Turquoise Europe mirrors the existing Turquoise membership documentation and consists of the following:

  1. Turquoise Europe Membership Application Form (this includes an order form for the Turquoise Europe Member Agreement and Turquoise Europe Member Portal Agreement) 

  2. Turquoise Europe Member Agreement Terms & Conditions

  3. Turquoise Europe Member Portal Agreement Terms & Conditions

  4. Turquoise Europe Sponsored Access Application Form
  5. Turquoise Europe Sponsored Access Agreement

Completed membership documents should be signed, scanned and returned via email to membership@lseg.com or returned via hardcopy to Turquoise Membership, London Stock Exchange Group, 10 Paternoster Square, London EC4M 7LS United Kingdom.

    1. Complete on-boarding information and request Technical Enablements.

Following submission of the Turquoise Europe Membership Application Form, customer Super Users will be provided with login details for the Turquoise Europe Member Portal. Super Users can set-up and permission additional users to complete the on-boarding information for their firm in the Member Portal. Applicants will require new logical connections for trading on Turquoise Europe; new CompIDs should be requested in the Turquoise Europe Member Portal.

 

    1. Request Clearing Set-up

Turquoise Europe plans to offer the same interoperable clearing arrangements available on Turquoise today (subject to regulatory approval). Customers will need to arrange for the clearing of their trades on Turquoise Europe by contacting their CCP of choice either directly (if they are a clearing member) or through their GCM (if they are a non-clearing member) to agree their on-boarding requirements. Turquoise will liaise with the CCPs to manage customer static data and trading access.

 

    1. Technical Testing & Customer Dress Rehearsal

Customers will need to complete a mandatory conformance test in Turquoise Customer Development Service (CDS) and return the certification test report. In addition, they can arrange for optional testing with the CCP from Turquoise CDS. All customers will have to participate in one customer dress rehearsal weekend for the Turquoise Europe production environment (dates to be confirmed).

 

    1. Go Live Preparation

In preparation for potential go-live, customers will need to upload their short long code mappings in the Member Portal and, if required, complete an algorithmic market making agreement.

 

Further Information

If you have any questions, please speak with your account manager or contact the Business Development Team on +44 (0) 20 7382 7650 or via email to sales@tradeturquoise.com. For on-boarding enquiries, please contact the Membership Team on +44 (0) 20 7797 1900 or via email to membership@lseg.com.