[ T H O U G H T
L E A D E R S H I P ]
For midpoint & blocks,
add Turquoise
Investors benefit using Turquoise Lit and Turquoise Plato innovations.
W
hen 900 electronic trading
experts of FIX Trading
Community gathered from 22
countries at the 2016 EMEA Trad-
ing Conference in London, they
were asked their opinion about
the European trading landscape in
2018 post MiFID II.
More than half the audience,
51%, said they expected in 2018
“More electronic Block Trading”.
With the next question, it was
our privilege to see distinguished
practitioners clearly express their
independent opinion that Tur-
quoise was their preferred venue
for order book innovation.
Fast forward to end of Novem-
ber 2018, and customers using
Turquoise Plato Block Discovery™
have traded more than ¤150 billion
– more than any other provider as
a fully automated service without
the fading associated with manual
firm up models. The insight is
that Electronic Block Trading at
midpoint works and Turquoise is
fully adopted by the global investor
community, ready to scale beyond
UK and European markets.
The puzzle facing exchanges
worldwide is that electronic order
books shrink trade size. A large
order matching against small
46 // TheTrade // Winter 2018
orders leads to small trades – and
published data shows that Euro-
pean exchange order books have
shrunk and converged to an aver-
age of around ¤10,000 per trade.
Why does this matter? Because
institutional investors such as asset
managers, pension funds and in-
surance companies handling large
trades – ultimately on behalf of end
investors – will suffer stronger neg-
ative market impact and signalling
risk in such an environment.
Working together for years with
buyside and sell-side Turquoise
designed and refined a multilateral
model where the average trade
size of electronic block trading on
Turquoise midpoint order book has
grown for blue chips to more than
¤1m per trade via Turquoise Plato
Block Discovery™. This is 100x
larger than the average trade size
of ¤0.01m per trade.
Behaviour continues to evolve
positively with buy-side dealers
sending larger fully electronic
orders into Turquoise Plato Block
Discovery™ for industry leading
high rates of automatic firm up into
the uniquely designed Turquoise
Plato Uncross™ – the high-quality
execution destination featuring
low price reversion after a trade.
By 2016, investors could find a
single electronic block execution
per stock per day on the scale of
single digit millions of Euros per
trade.
Today in 2018, investors using
Turquoise Plato Block Discovery™
are more likely to match multiple
big trades per stock in one day,
now this service has grown with a
significant user base and become
the leading electronic block and
quality midpoint trading venue in