The London Stock Exchange Group’s multilateral trading facility (MTF), Turquoise, has signed a cooperation agreement with M-DAQ to deliver multi-asset market efficiencies.
Subject to regulatory approval, the collaboration will provide investors with the ability to execute cross-currency securities transactions and settle in their currency of choice via their brokers.
Turquoise is a MTF regulated by the UK’s Financial Conduct Authority, which accepts members from overseas jurisdictions including Singapore, Hong Kong and Dubai. As an MTF, it also offers global investors access to order books to trade nearly 4300 securities of 20 countries in a single interface.
With M-DAQ headquartered in Singapore, the two firms claim that the combined workflow will enhance the foreign investment paradigm across continents.
“We are well positioned to work alongside Turquoise to bring the global equities market a solution that would allow cross-border investors to access foreign assets with more ease and confidence.”
As part of the cooperation, M-DAQ will contribute its Trading the Right Chart (TRC) product, which will complement the capabilities of Turquoise by removing the need for multilateral relationships.
In addition, FX operational risk faced by brokers will be reduced, delivering increased efficiencies to equity capital markets as well as better outcomes for end investors.
“By leveraging our wealth of experience, we can offer customers the ability to efficiently execute small FX transactions fitting the securities order shapes and using our tried and tested technology capabilities,” said Richard Koh, founder and chief executive of M-DAQ Global.
“We are well positioned to work alongside Turquoise to bring the global equities market a solution that would allow cross-border investors to access foreign assets with more ease and confidence.”
Robert Barnes, group head of securities trading, LSEG and chief executive of Turquoise Global Holdings, added: “Together, Turquoise M-DAQ will bring transparency, automation and efficiency to trading of securities that settle in an investor’s currency of choice.”
Earlier this week, LSEG announced that the Monetary Authority of Singapore (MAS) approved Turquoise Global Holdings as a Recognised Market Operator (RMO) in Singapore. The move will allow firms located in Singapore to apply for membership to Turquoise and London Stock Exchange, enabling them to access global securities through a single connection.
This follows the recent approval of Turquoise as a RMO in Hong Kong as well. The recent expansion into Asia by Turquoise looks to attract Asian investors back into European equities by improving access to its platform for investors based in the region.