[ T H O U G H T
L E A D E R S H I P ]
Turquoise Plato Block Discovery TM
more than €150bn value traded since launch to November 2018
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91.51
50.74
6.65
0.05 1.16
Dec 2013 -
Nov 2014 Dec 2014 -
Nov 2015
help customers satisfy an ever-in-
creasing demand for growth – driv-
en in part by the introduction of
Quantitative Easing and resulting
negative interest rates in continen-
tal Europe, Switzerland, Nordics
– like Japan.
Coincidently, by October 2018
almost 3,000 stocks traded on
Turquoise, compared with around
1,600 in early 2013. This increasing
number of active stocks demon-
strates that investors are seeking
growth in investment returns, not
only through blue chips but also
mid and small caps – and they are
finding liquidity in these mid and
small caps via Turquoise trading
mechanisms.
A year ago, Turquoise embarked
on a strategic initiative to enhance
the trading of dynamic mid-tier
company stocks quoted on LSEG’s
international growth market, AIM.
We made the constituents of the
FTSE AIM UK 50 index, the fifty
largest UK stocks on AIM, includ-
48 // TheTrade // Winter 2018
Dec 2015 -
Nov 2016
Dec 2016 -
Nov 2017
Dec 2017 -
Nov 2018
ing ASOS and Fever-Tree, available
to trade on Turquoise.
Investors in AIM 50 securities
now have access to the same suite
of Turquoise execution channels
that are available via Turquoise for
the biggest UK listed blue chips
and mid-caps in the FTSE 100
and FTSE 250. Investors in these
AIM stocks have added $billions
of trades via Turquoise, with the
majority of this additional value
matched at midpoint via Turquoise
Plato™.
Investors routinely use Turquoise
Plato™ midpoint and Turquoise
Plato Block Discovery™ execution
channels to save half of approx-
imately 5 basis points bid offer
spread associated with FTSE 100
blue chips. These investors can
now use the same algorithmic
workflow to achieve savings of
more than ten times this amount by
matching at midpoint of much wid-
er bid offer spreads associated with
the smaller and historically less
liquid FTSE AIM UK 50 securities.
Analysis led to further positive
insight. Since the addition of
Turquoise midpoint and electronic
block trading channels for FTSE
AIM UK 50 constituents, the pri-
mary stock exchange listing AIM
securities, London Stock Exchange,
recorded increased activity on its
order book intraday and during its
closing auction. The insight is that
via the model of adding Turquoise
midpoint order book to that of the
primary market resulted in greater
values traded in aggregate of all
execution channels.
Sharing proximity & Open Access
contributes to customer efficiency,
choice and liquidity. By scaling
the well understood workflow of
Turquoise trading channels, inves-
tors can buy and sell a wider range
of stocks symbols with minimal
implementation cost.
Our newest functionality is the
freshly branded Turquoise Plato
Lit Auctions™ offering pre-trade
transparency and multilateral li-
quidity for trades of all sizes. While
average sizes of European equities
remain around ¤10,000 per trade,
Turquoise Plato Lit Auctions™ have
recorded trades both small and
a material portion above Large-
in-Scale, including trades above
¤500,000 in size spanning stock
names of 15 countries. The largest
single trade to date with different
counterparties was more than ¤10m
via Turquoise Plato Lit Auctions™.
Quality is high with low price rever-
sion recorded after trades.
Turquoise has a proud track
record of innovation and partner-
ship efficient capital markets. As
Turquoise celebrates 10 years of
trading, thank you to our custom-
ers, we look forward to what the
next 10 years will bring as financial
markets, investor’s needs and mar-
ket structures continue to evolve.