Turquoise is an equities
trading platform
In finance, an electronic trading platform also known as an online trading platform, is a computer software program that can be used to place orders for financial products over a network with a financial intermediary. Various financial products c ...
(
multilateral trading facility
A multilateral trading facility (MTF) is a European Union regulatory term for a self-regulated financial trading venue. These are alternatives to the traditional stock exchanges where a market is made in securities, typically using electronic s ...
or MTF), created by nine major
investment banks
Investment banking pertains to certain activities of a financial services company or a corporate division that consist in advisory-based financial transactions on behalf of individuals, corporations, and governments. Traditionally associated with ...
in 2008. The aim was to provide dealing services at a 50% discount to traditional
exchanges.
It is a hybrid system that allows trading both on and off traditional exchanges. The system was advertised as a "pan-European platform based in
London
London is the capital and largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary down to the North Sea, and has been a majo ...
".
History
It was set up by a consortium of banks made up of
BNP Paribas
BNP Paribas is a French international banking group, founded in 2000 from the merger between Banque Nationale de Paris (BNP, "National Bank of Paris") and Paribas, formerly known as the Banque de Paris et des Pays-Bas. The full name of the grou ...
,
Citi
Citigroup Inc. or Citi (stylized as citi) is an American multinational investment bank and financial services corporation headquartered in New York City. The company was formed by the merger of banking giant #Citicorp, Citicorp and financial ...
,
Credit Suisse
Credit Suisse Group AG is a global investment bank and financial services firm founded and based in Switzerland. Headquartered in Zürich, it maintains offices in all major financial centers around the world and is one of the nine global " ...
,
Deutsche Bank
Deutsche Bank AG (), sometimes referred to simply as Deutsche, is a German multinational investment bank and financial services company headquartered in Frankfurt, Germany, and dual-listed on the Frankfurt Stock Exchange and the New York Sto ...
,
Goldman Sachs
Goldman Sachs () is an American multinational investment bank and financial services company. Founded in 1869, Goldman Sachs is headquartered at 200 West Street in Lower Manhattan, with regional headquarters in London, Warsaw, Bangalore, H ...
,
Merrill Lynch
Merrill (officially Merrill Lynch, Pierce, Fenner & Smith Incorporated), previously branded Merrill Lynch, is an American investment management and wealth management division of Bank of America. Along with BofA Securities, the investment bank ...
,
Morgan Stanley
Morgan Stanley is an American multinational investment management and financial services company headquartered at 1585 Broadway in Midtown Manhattan, New York City. With offices in more than 41 countries and more than 75,000 employees, the fir ...
,
Société Générale
Société Générale S.A. (), colloquially known in English as SocGen (), is a French-based multinational financial services company founded in 1864, registered in downtown Paris and headquartered nearby in La Défense.
Société Générale ...
and
UBS
UBS Group AG is a multinational Investment banking, investment bank and financial services company founded and based in Switzerland. Co-headquartered in the cities of Zürich and Basel, it maintains a presence in all major financial centres ...
. The group selected ''EuroCCP'' to provide clearing and settlement services. The group selected
Sweden
Sweden, formally the Kingdom of Sweden,The United Nations Group of Experts on Geographical Names states that the country's formal name is the Kingdom of SwedenUNGEGN World Geographical Names, Sweden./ref> is a Nordic country located on ...
's
Cinnober as its trading platform. Turquoise developed a real-time
market surveillance
Market surveillance for products ensures that products on the market conform to applicable laws and regulations. This helps to foster trust among consumers buying products or financial services and protects consumers and professionals from harm fr ...
system "to capture breaches of trading rules and root out market irregularities". The system is based on the
Software AG
Founded in 1969, Software AG is an enterprise software company with over 10,000 enterprise customers in over 70 countries. The company is the second largest software vendor in Germany, and the seventh largest in Europe. Software AG is traded on t ...
Apama
Apama ( grc, Ἀπάμα, Apáma), sometimes known as Apama I or Apame I, was a Sogdian noblewoman and the wife of the first ruler of the Seleucid Empire, Seleucus I Nicator. They married at Susa in 324 BC. According to Arrian, Apama was the da ...
complex event processing Event processing is a method of tracking and analyzing (processing) streams of information (data) about things that happen (events), and deriving a conclusion from them. Complex event processing, or CEP, consists of a set of concepts and techniques ...
platform.
Turquoise was successfully launched in August 2008. Turquoise uses QuantHouse as low latency market data feed for its platform.
In December 2009, the
London Stock Exchange Group
London Stock Exchange Group plc (LSEG) is a United Kingdom-based stock exchange and financial information company headquartered in the City of London, England. It owns the London Stock Exchange (on which it is also listed), Refinitiv, LSEG Te ...
agreed to take a 60% stake in trading platform Turquoise, which had a 7% share of the market. Turquoise was merged with the LSE's trading facility Baikal Global.
On October 4, 2010, Turquoise migrated to
MillenniumIT platform. The next day internal technical problems discovered overnight forced the exchange to postpone the system's opening until 9:15am. The system was out of service for two hours on November, 2010. The London Stock Exchange said "preliminary investigations indicate that this human error may have occurred in suspicious circumstances".
Turquoise has expanded to include the trading of Option and Future Derivatives with its new Electronic
Sola Trading
Sola is a municipality and a Seaside resort in Rogaland county, Norway. It is located in the traditional district of Jæren. The administrative centre of the municipality is the village of Solakrossen. Other villages include Tananger, Håland ...
derivatives platform launched in June 2011, started with the addition of FTSE Index 100 Futures contracts and has expanded to have FTSE 100 Options contracts in September 2011. This fast-growing, high-speed exchange has been recognized as the award winner of the "Best New Derivatives Trading Platform/Service" by the Financial News Awards for Excellence in Trading and Technology, Europe 2011. Since September 2013, Turquoise Derivatives business was acquired by London Stock Exchange plc.
In October 2014, Turquoise launched block discovery service to enable participants trading large orders by matching block indications. The service won 'Most innovative trading service' at Trading&Technology awards 2015.
In May 2016, Turquoise announced plans to extend dark pool to Czech, Poland, Hungary.
In April 2021, Turquoise announced it volumes surged in the first three months following Brexit.
In September 2021, Turquoise announced it crossed the €1 trillion milestone in equities trading since its partnership with Plato. It also expanded access to US share trading during UK market hours via a new business unit and announced it had become the first trading venue to connect to OpenFin so that its data feed could be delivered to FlexTrade.
In August 2022, Turquoise partnered with financial services firm M-DAQ to provide market participants with the ability to trade cross-currency securities and settle in their currency of choice.
In September 2022, Turquoise announced the reintroduction of trading tariffs in an effort to boost its lit markets business. They were removed in 2018 because market participants said they harmed
best execution
Best execution refers to the duty of an investment services firm (such as a stock broker) executing orders on behalf of customers to ensure the best execution possible for their customers' orders. Some of the factors the broker must consider when ...
.
See also
*
Chi-X Europe
BATS Chi-X Europe is a London-based, order-driven pan-European equity exchange that has been a subsidiary of BATS Global Markets since 2011. It is a low latency, low cost alternative to exchange traded equities and exchange-traded funds (ETFs) ...
*
Euronext
Euronext N.V. (short for European New Exchange Technology) is a pan-European bourse that offers various trading and post-trade services.
Traded assets include regulated equities, exchange-traded funds (ETF), warrants and certificates, bonds, de ...
*
NYSE Euronext
NYSE Euronext, Inc. was a transatlantic multinational financial services corporation that operated multiple securities exchanges, including the New York Stock Exchange, Euronext and NYSE Arca (formerly known as ArcaEx). NYSE merged with Archip ...
*
London International Financial Futures and Options Exchange
The London International Financial Futures and Options Exchange (LIFFE, pronounced 'life') was a futures exchange based in London. In 2014, following a series of takeovers, LIFFE became part of Intercontinental Exchange, and was renamed ICE F ...
Notes
External links
*
{{Authority control
London Stock Exchange Group
Electronic trading platforms
Financial markets
Stock exchanges in the United Kingdom