The London Stock Exchange Group’s (LSEG) Turquoise has developed a pre-trade transparent and MiFID II compliant auction mechanism for its lit order book.
Turquoise Lit Auctions acts as a matching mechanism to provide indicative pricing and quantity to the market.
They will be triggered when Turquoise receives matching orders from its members, who then have a 50-millisecond window to submit further orders to the auction before a randomised uncrossing period begins.
LSEG said it has already gained regulatory approval to launch the Turquoise Lit Auctions in the fourth quarter of this year, just prior to the implementation deadline for MiFID II.
Robert Barnes, CEO at Turquoise, commented: “As firms seek MiFID II compliance, Turquoise Lit Auctions is another example of an easy to implement solution offering quality execution in a regulated market environment.”
Turquoise also offers a non-displayed service that provides periodic and randomised auction-like uncrossing’s via Turquoise Plato Uncross.