Murray Roos, Group Head of Capital Markets at London Stock Exchange Group reflects on what has been a big year for Turquoise Plato®
We are delighted with the record performance of Turquoise Plato.
It reminds us that we exist to solve our clients’ needs and is further evidence why partnering with customers is the responsible route to driving growth and innovation across our business.
What is clear from our relationship with Plato is that, together as a community of investors, intermediaries, and exchange, we share values and a vision for an open access marketplace that delivers collaboration, innovation, execution.
This relentless focus on the efficiency and quality of what we deliver to our respective clients challenges us to build things, to find better ways to do things, and to improve systems that ultimately benefit end investors for the greater good.
The last few months taught us we can deal with the unexpected. And we can be sure that in the months and years ahead there will continue to be a lot of change. On behalf of our team, I thank you for your trust.
We look forward to continuing our journey together to serve the industry and our respective clients, to improve ways of working and to innovate in this evolving market landscape in the spirit of cooperation to promote liquidity and new business.
Dr Robert Barnes, CEO Turquoise, Capital Markets, London Stock Exchange Group
Thank you to our Customers and the distinguished Community of Plato Partnership,
2020 is the year electronic block trading at midpoint became mainstream via Turquoise and London’s capital markets remained open during the extreme conditions of H1 and again Q4, particularly November. The insight is that innovations designed in partnership with customers, such as Turquoise Plato® execution channels and particularly Turquoise Plato Block Discovery™ performed well during volatile and difficult trading conditions helping customers efficiently to get their business done. And with the launch of Turquoise Europe on 30 November 2020, we look forward to a smooth transition into 2021 and the opportunity to grow new business together.
2020 is the year electronic block trading at midpoint became mainstream via Turquoise with Turquoise Plato Block Discovery™ for 1st time representing more than half (57.6% Nov2020 YTD) of all value matched in Turquoise Plato® order book.
- Figure 1. shows from 2013 to 2020 Nov YTD, left y-axis the aggregate value processed by Turquoise Plato dark pool since 2013 is more than €1.2 trillion, a statistically relevant data set; and right y-axis shows annual value Turquoise Plato Block Discovery divided by Turquoise Plato dark pool total for that year; the insight is that 2020 is the first time electronic block trading at midpoint inside bid offer touch has gone mainstream.
- Table 1. Turquoise Plato initiatives by 2020 November YTD already has set new annual value traded records
|Turquoise Plato Block Discovery™Value Traded||Turquoise Plato®Value Traded||Turquoise Plato Block Discovery™value traded as a % of total value traded in Turquoise Plato®order book|
|2019 Nov ytd||€ 94,182,758,294||€ 197,471,988,120|
|2019 full year||€ 102,943,070,027||€ 212,758,342,609||48.4%|
|2020 Nov ytd||€ 129,509,714,140||€ 224,674,252,900||57.6%|
|2020 is new annual record||2020 is new annual record|
|2020 Nov ytd vs 2019 full year||26%||6%|
CASE STUDY – Innovation in Partnership
Turquoise Plato Block Discovery®
From 2006 idea to
- 2013 deployment of initial functionality and subsequent refinement based on feedback from community of buyside and sellside, to
- 2016 cooperation agreement with Plato Partnership, not-for-profit company of buy and sell-side collaborating to bring creative solutions and efficiencies to today’s complex equity market place, to
- 2020 achievement of electronic trading at midpoint on order book inside the best bid and offer touch price becoming mainstream.
2006: Turquoise included the objective for some form of ‘smart anonymous block auctioning’ to that of ‘competitive panEuropean multilateral trading via single lit order book.’
2008: September, Turquoise consortium of 9 banks launched with first lit order book trades at height of global financial crisis and Lehman bankruptcy.
2010: LSEG acquires 51% Turquoise and extends 49% shareholdings to 12 global banks. Turquoise offerings included a single point of entry to securities of multiple countries and a midpoint dark pool.
2013: Nov/December, Turquoise brands Turquoise Uncross™ its differentiated randomised midpoint and deploys initial Turquoise Block Discovery™ midpoint electronic block trading functionality
2013: Independent venue performance analytics firm LiquidMetrix confirms trades via Turquoise Uncross feature consistently low price reversion after the trade evidencing consistently high quality of execution.
2014: February (London) BDS working group of buyside approaches Turquoise as trusted partner; September (Berlin), International Trader Forum panel of buy side dealers calls for electronic block trading and highlights Turquoise as a partner to trust.
2014: Turquoise, with support of customers, announces formal launch, featured also by Financial Times, on 20 October 2014, and first customer trades match in October.
2014: October monthly value traded = €12.7m, November first full month of trading = €35.4m.
2015: July, Plato selects Turquoise as its Preferred Partner following an extensive selection process from starting list of 20 firms because of a proven track record of innovation and customer engagement.
2015: Turquoise CEO addresses IOSCO Board & Financial Stakeholders by invitation of IOSCO Chairman and Secretary General on innovations in midpoint and electronic block trading.
2015: Turquoise wins Financial News Award for Excellence in Trading and Technology : Most Innovative Trading Product / Service.
2016: September, Plato enters a cooperation agreement with Turquoise that formally brings together, for the first time, buy-side, sell-side and a trading venue to deliver increased efficiencies in anonymous European equity block trading.
2016: Turquoise rebrands dark pool and all dark services in partnership with Plato as Turquoise Plato.
2016: The Partnership of Turquoise + Plato www.bestexecution.net/announcement-turquoise-plato/
2017: Turquoise wins The TRADE’s Leaders in Trading Award for Outstanding Block Trading Venue.
2017: December, Turquoise launches Turquoise Plato Lit Auctions™
2017: Turquoise Plato® becomes #1 dark pool for UK securities value traded, complementing London Stock Exchange as international listing destination of choice with closing auction record of reference for index constituents in calculations.
2018: The Parliamentary Review features Turquoise Global Holdings investment firm authorised to operate Turquoise® as Finance example “Highlighting best practice”.
2018: Turquoise is #1 Midpoint & Electronic Block dark pool trading venue, source: Rosenblatt Securities 2018 year in review.
2019: Turquoise is #1 Midpoint & Electronic Block dark pool trading venue, source: Rosenblatt Securities 2019 year in review.
2020: 2020 is the year electronic block trading at midpoint became mainstream via Turquoise with Turquoise Plato Block Discovery™ for 1st time representing more than half (57.6% Nov2020 YTD) of all value matched in Turquoise Plato® order book.
2020: Turquoise is #1 Midpoint & Electronic Block dark pool trading venue, source: Rosenblatt Securities 2019 monthly ‘Let there be Light – European edition’ reports to November YTD.
2020: largest single order book trade €24.9m recorded October, record month of March = €14,569.9m. Compare with €12.7m in month of Oct 2014, Nov 2014 first full month of trading = €35.4m. Nov 2020 = 14,120.9m.
2020: Turquoise Plato® innovations have deployed smoothly into production and achieved consecutive year on year records of customer value traded since launch:
- Figure 2. Turquoise Plato Lit Auctions™ annual values traded
- Figure 3. Turquoise Plato Block Discovery™ annual values traded
- Figure 4. Turquoise Plato® annual values traded
- Table 2. below: 2020 achievement of electronic trading at midpoint on order book inside the best bid and offer touch price becoming mainstream.
Turquoise Plato works well on all days, including large market down days (28 Feb & Mar 2020) and large market up days (9 & 10 Nov 2020).
- Table 3. Turquoise Plato Block Discovery™ new records in 2020
• Record Monthly Values
Mar 2020 = €19.33 billions
Feb 2020 = €14.57 billions
Nov 2020 = €14.12 billions
• Record Weekly Values
09 Mar – 13 Mar 2020 = € 5.35 billions
09 Nov – 13 Nov 2020 = € 4.83 billions
24 Feb – 28 Feb 2020 = € 4.54 billions
• Record Daily Values
09 Nov 2020 = €1421.1 millions
10 Nov 2020 = €1306.0 million
09 Mar 2020 = €1226.8 millions
• Record Single Trade
on order book at mid-price of PBBO
02 Oct 2020 = €24.9 millions
19 Feb 2020 = €23.1 millions
18 Mar 2020 = €22.6 millions
- Figure 5. Turquoise Plato Block Discovery™ monthly values traded and select records
- Figure 6. Turquoise Plato dark pool that includes values traded via Turquoise Plato Block Discovery™ consolidated its position as #1 of 21 midpoint and electronic trading dark pools across UK and Europe according to figures collected by independent Rosenblatt Securities, example March 2020 was record month of activity:
- Table 4. Furthermore, Turquoise Plato Lit Auctions™ our pre-trade transparent frequent batch auction service in 2020 achieves its third annual Turquoise record in a row since launch in December 2017
|Turquoise Plato Lit Auctions™Value Traded|
|2019 Nov ytd||€ 8,643,253,880|
|2019 full year||€ 9,378,560,358|
|2020 Nov ytd||€ 11,261,900,364|
|2020 is new annual record|
|2020 Nov ytd vs 2019 full year||20%|
2021 starts a new chapter for Turquoise, Hard Brexit.
Turquoise Global Holdings Limited, authorised by UK Financial Conduct Authority launches:
Turquoise Global Holdings Europe B.V. (“TGHE”) authorised by Autoriteit Financiële Markten (AFM)
to operate a multilateral trading facility (MTF) in the Netherlands – 30 November 2020,
ready for 4 January 2021 EU STO.
Turquoise Europe will offer same functionality as Turquoise today, including our newest Turquoise Plato Trade At Last™ successfully launched on 19 Oct 2020.
- Turquoise will continue to offer its full stock universe, including UK names – and, when Swiss UK equivalence active in 2021, re-admission of Swiss securities.
- Turquoise Europe will offer European securities including shares, ETFs/ETPs, and European Rights Issuers (and not UK and not Swiss securities).
- Our customers are telling us they prefer to avoid splitting liquidity per stock ISIN and thus plan to send orders in European securities onto European venues like Turquoise Europe after end of transition and from first trading day, 4 Jan 2021.
Turquoise Europe 30 November to 11 December 2020
the insight is that Week 1 an encouraging start, smooth launch after 3 year project.
a. Members successfully entered orders in and matched thousands of trades
b. Orders received and trades matched via all of our order books: TQEX TQEM TQEA
c. Trades acknowledged by all 3 interoperating CCPs: EuroCCP, LCH Ltd, SIX x-clear.