Turquoise, the pan-European multilateral trading facility owned by the London Stock Exchange, has introduced a pricing promotion on its integrated order book to attract more passive flow.
The promotion, which will begin on 1 June, will apply to Turquoise members that increase their passive trading activity by more than €1 billion per month versus their average for the first quarter of this year. The scheme will offer rebates according to the increase in passive value traded in a calendar month. The first €2.5 billion of passive flow over and above a member’s previous quarterly average will receive a rebate of 0.28 basis points, the next €3.5 billion will receive 0.48 bps and the next €4 billion will be rebated 0.28 bps.
New Turquoise members will also be able to qualify for the promotion if their passive flow exceeds €1 billion during any month of the promotion.
Aggressive orders on Turquoise will continue to be charged at 0.28 bps and members that do not qualify for the promotion will continue to receive a rebate of 0.2 bps for passive flow.
“We hope to increase passive liquidity from investment banks’ proprietary trading desks and high-frequency firms so we can improve spreads and continue building up market share,” a spokesperson from the LSE told theTRADEnews.com.
Turquoise traded €23.19 billion in April according to Thomson Reuters, giving it a 2.73% share of pan-European trading.