London Stock Exchange plans pan-European derivatives platform

The London Stock Exchange Group (LSEG) yesterday revealed its plans to build a pan-European platform for derivatives trading, to take on its rivals including the recently announced combination of European stock exchange majors NYSE Euronext and Deutsche Borse.

The long-awaited plan came just a fortnight after the LSEG and Canada's TMX Group Inc, operator of the Toronto Stock Exchange announced a planned merger to create the world's largest bourse in terms of number of listings and second largest in terms of value of traded companies. (See: LSE, TSX merger to create world's largest bourse)

The European derivatives platform shall be executed through a newly created business 'Turquoise Derivatives' that would combine with the group's existing derivatives market 'EDX London' (EDX) and would use TMX Group's market leading derivatives trading technology, SOLA, already being used by EDX, LSEG said in a statement. 

Turquoise CEO David Lester said: ''The European derivatives market is currently characterised by high execution costs and a lack of choice. I am certain that Turquoise Derivatives, combined with the proven operating and clearing model already enjoyed by EDX customers, will be the start of the process that turns the sector on its head.''

The new derivatives trading platform would utilise EDX's existing, proven technology and clearing infrastructure, offering customers immediate access and economies of scale through their existing connections. 

It will use the ultra-low latency SOLA technology from TMX Group that is being successfully used in LSEG's IDEM and EDX derivatives markets, and would continue to build up EDX's successful emerging markets business.