Figure 1. Turquoise Lit Auctions™ Growth Trend (December 2017 – July 2018)
Turquoise Lit AuctionsTM, the intraday trading innovation launched by Turquoise in partnership with customers, was launched in December 2017 and has grown its activity from €1.0 million value traded in January 2018 to more than €1.2 billion in June 2018.
Between May and June 2018, Turquoise Lit Auctions™ matched a total of more than 165,000 trades, of which only 104 trades were from the same member on both sides within the maximum potential 100 millisecond randomised widow for matching, and with the same size on both buy and sell. This means orders sent to Turquoise Lit Auctions™ are likely to interact fully with all liquidity available on a truly multilateral basis.
Our focus at Turquoise is to listen to customers, prioritising helping them meet regulatory obligations, reduce costs and generate revenues through new business initiatives which are developed in partnership with Turquoise. Key investment trends are the search for growth and the complementary desire to outperform benchmarks by trading block liquidity through electronic trading channels. We aim to respond to this demand with innovation and open access.
Figure 2. Turquoise Plato Block Discovery™ – Santander Case Study, March 2018.
As an example, investors are trading shares of Spanish company, Santander, on multiple trading platforms, including BME, the electronic order book of its primary listing exchange, Bolsas y Mercados Españoles, and Turquoise, the European Multilateral Trading Facility based in the City of London. This illustration shows the prices and sizes of trades by investors on 16 March 2018.
Turquoise trade prices are similar to those of the primary Stock Exchange, and Turquoise trade sizes serve both the smallest and largest orders through its single connection for Straight Through Processing (STP) from trading in London to settlement into Spain.
In this example, Turquoise enables investors to access more than 19 per cent, or € 100 million, of all order book values traded that day. Turquoise matched the very largest order trades of all venues during the day via its award-winning electronic block trading innovation Turquoise Plato Block Discovery™. The largest single order book trade in this example is € 15.6 million on Turquoise. Average sizes across other European order book venues are approximately € 0.01 million per trade.
By trading larger size on Turquoise, investors can achieve significant liquidity, and the brokers that serve them also may save post-trade costs where these relate to number of trades.