Plato Partnership and Turquoise to Conclude Commercial Partnership
Plato Partnership, the not-for-profit member association at the forefront of driving innovation in the equities marketplace, and Turquoise, a pan-European trading platform majority owned by LSEG (London Stock Exchange Group), in partnership with the user community, have announced that their commercial partnership will conclude in 2025. This decision marks the end of eight years of collaboration that has played a central role in advancing block trading and enhancing market efficiency across Europe.
While their commercial partnership has ended, Plato Partnership and Turquoise are committed to continuing their cooperation in the interests of the marketplace. Both organisations are dedicated to fostering a more efficient, transparent, and inclusive trading environment, ensuring ongoing benefits for all market participants.
Mike Bellaro, CEO of Plato Partnership said: "Plato Partnership and Turquoise have worked together to drive innovation and positive change within the equities marketplace. Though our commercial partnership has come to an end, the collaboration has achieved positive change in block trading and market efficiency. Plato remains committed to advancing these goals and will continue to work with Turquoise in the interests of the equity marketplace. We look forward to building on the strong foundation we have established and pursuing new opportunities for growth and development through our ongoing initiatives, including reducing market data costs, ECM electronic workflow and market outage standards."
Simon Steward, Buy-Side Chair of Plato Partnership said: "As a Buy-Side participant, I have seen firsthand the progress made through our partnership with Turquoise. Together, they have made great progress in block trading, enhancing liquidity and trading opportunities for the Buy-Side community. While our commercial partnership has concluded, the spirit of collaboration remains. Plato will continue to champion initiatives that meet the evolving needs of buy-side participants, ensuring that our market remains dynamic and efficient. Our ongoing projects, such as addressing high market data costs and exploring innovative US trading mechanisms in Europe, will continue to drive our mission forward."
Salvador Rodriguez, Sell-Side Chair of Plato Partnership said: "The advancements made over the course of the Turquoise-Plato relationship have been valuable to the Sell-Side community, particularly in setting standards for market transparency and efficiency. The end of the commercial partnership marks a new phase, but it does not diminish the importance of our achievements. Plato is dedicated to continuing its work and exploring new key initiatives, such as optimising primary exchange trading hours and improving the fragmented clearing environment. Our ongoing efforts will ensure that we keep delivering practical solutions that enhance the trading landscape for the Sell-Side community and beyond."
Adam Wood, CEO, Turquoise Global, LSE plc said: “We thank Plato for a successful partnership that has helped bring efficiencies to the European equities market. Turquoise will continue to engage closely with the buy-side and sell-side to develop best practice guidance and deliver increased efficiencies in anonymous European equity block trading.”
In seven years and ten months of collaboration, the Turquoise Plato partnership has achieved many significant milestones, including:
September 2016 – Turquoise Plato cooperation agreement first signed
November 2017 – Turquoise Plato Block Discovery™ wins The TRADE’s Leaders in Trading award for Outstanding Block Trading venue
December 2017 – Turquoise Plato® launches Turquoise Plato Lit Auctions™
September 2018 – Turquoise features by invitation in the Parliamentary Review highlighting best practice
October 2020 – Turquoise Plato® launches Turquoise Plato Trade at Last™
September 2021 – Turquoise hits €1 trillion in equities traded milestone
November 2021 – Turquoise wins Outstanding Equities Trading Venue overall at The TRADE Leaders in Trading Awards
April 2023 – Turquoise launches Retail Max™
Plato Partnership continues to focus on 14 key initiatives selected by Plato’s Advisory Committee. Each project is designed to tackle specific issues, providing practical solutions that benefit all stakeholders in the trading ecosystem.
ECM Global Electronic Workflow: Plato Partnership is spearheading the development of a global electronic buy-side ECM workflow. This initiative aims to enable seamless primary book-building without disrupting sell-side processes. Through rigorous validation with market participants, we propose a model where Primary Portal acts as the access point for buy-side electronic ECM workflow. This model will integrate with Buy-side E-OMS and primary sell-side bookbuilding platforms like S&P, Dealogic, and Capital Markets Gateway, establishing a comprehensive end-to-end electronic process.
Addressing High Market Data Costs: High market data costs pose significant challenges to market participants. Plato Partnership is conducting consultant research to analyse these impacts and the associated costs of trading. Our goal is to develop a framework of recommendations for discussions with policymakers, aiming to mitigate these costs and support more efficient trading environments.
Market Outages Standards: In collaboration with major primary exchanges in Europe and the UK, as well as the FCA, Plato Partnership is working to define optimal outage process standards. This initiative focuses on establishing common standards to be adopted in the event of market outages, ensuring a more robust and reliable trading infrastructure.
Brazil Equities Block Trading Venue: Plato Partnership is excited to announce the development of a Brazil equities dark block trading venue through our SL Tools initiative. This venue will enhance trading opportunities and liquidity in the Brazilian market, furthering our commitment to global market innovation.
Standardised Buy-side E-OMS Connectivity Charges: To address the variability in Buy-side E-OMS provider connectivity charges to the sell-side, Plato Partnership is engaging with E-OMS providers and policymakers. Our aim is to create a standardised framework that will simplify and reduce costs, promoting a more streamlined and efficient trading process.
Improving the EU/UK Fragmented Clearing Environment: Plato Partnership is conducting academic empirical research to recommend improvements in the European equities clearing environment. By addressing fragmentation and reducing clearing costs, we aim to provide policymakers with actionable insights to enhance the efficiency of the clearing process.
Innovative US Trading Mechanisms in Europe: Recognising the potential of innovative US trading mechanisms, Plato Partnership is exploring partnerships with US vendors to bring these solutions to Europe. Our initiative seeks to optimise trading in European equities markets, leveraging proven strategies to drive market advancements.
Optimal Primary Exchange Trading Hours: Through academic empirical research and global case studies, Plato Partnership is investigating the impacts of changing trading hours on liquidity. Our discussions with major primary exchanges in Europe and the UK, along with market participants, aim to determine and implement optimal primary exchange trading hours.
High Closing Auction Tariffs and Liquidity: Plato Partnership is assessing the impacts of high closing auction tariffs on liquidity and order routing decisions. By analysing these effects, we intend to present our findings to exchanges and policymakers to advocate for changes that will enhance market efficiency and liquidity.
Improving Block Trading Opportunities: With fill rates on European dark trading venues currently very low, Plato Partnership is identifying ways to improve block trading opportunities. Our ongoing academic empirical research, "Examining Latent Liquidity and Execution Quality on Equity Trading Block Venues," uses dark order and trade data to pinpoint improvements for liquidity interactions.
Plato Thought Leadership: Plato Partnership is dedicated to producing regular thought leadership pieces on pertinent industry issues and trends. These pieces, written by individuals from member firms, are followed up with online panel discussions, fostering a collaborative environment for knowledge sharing and industry insights.
UK Trading Certification: Similar to our Germany initiative, Plato Partnership offers a 3-day trading certification program for UK buy-side participants. This program, conducted in collaboration with local universities and industry associations, provides in-depth training and knowledge sharing, strengthening the competencies of market participants.
T+1 Settlement Cycles: Rebecca Healey's research on the implications of the US's move to a T+1 settlement lifecycle for equities is a pivotal project for Plato Partnership. We are actively engaging with and influencing EU and UK policymakers to address these changes, ensuring that market participants are well-prepared for this significant transition.