Turquoise cash volumes up as derivatives market debuts

In May 2011 the London Stock Exchange Group saw cash equity trading jump year-on-year on its multilateral trading facility Turquoise, although equity volumes across the rest of the group fell in comparison with the high levels experienced in May 2010.
By None

In May 2011 the London Stock Exchange Group (LSEG) saw cash equity trading jump year-on-year on its multilateral trading facility (MTF) Turquoise, although equity volumes across the rest of the group fell in comparison with the high levels experienced in May 2010.

Average daily value traded for cash equities on Turquoise grew to £1.2 million (€1.4 billion), in May 2011 up 8% on the same month last year. The average daily number of trades was 27% higher than 12 months ago, at 309,090.

The MTF has continued to see strong volumes at the start of this month; on Friday 3 June, Turquoise claims to have traded in higher volumes than rival MTF BATS Europe for the first time across a number of European stock indices, including the CAC40, SMI, BEL20, PSI20 and ATX large cap indices and the CAC Next 20, AMX, FTSE 250 and MDAX mid-cap indices. According to its own figures, Turquoise commanded a 5.21% market share of pan-European equity trading for the day.

On its dark mid-point book last month, Turquoise traded an average daily value of £188 million (€215 million), up 24% on May 2010. The average daily number of midpoint dark trades was 29,631, an increase of over 13% year-on-year. Turquoise's total share of pan-European trading for May was 4.2%.

The US flash crash of 6 May 2010 saw the Dow Jones Industrial Average fall 1,000 points before recovering within a 20-minute period. Trading volumes for the month spiked in the ensuing volatility as many market participants exited their positions. As a result, many exchanges' May 2011 figures are expected to be lower than 12 months previously.

The average daily value traded on the LSEG's UK order book stood at £5.4 billion (€6.1 billion) last month, down 24% year-on-year, with the average daily number of trades reduced 16% to 694,247. The LSE’s share of trading in the total UK order book for May was 64% up slightly from 63.5% for April.

On the group's Italian order book, the average daily number of equity trades was 261,696, down 31% on the same month last year, whilst the average daily value traded on the order book decreased 33% year on year to £3.3 billion (€3.7 billion).

In May, a total of 27.1 million trades were carried out across the group’s electronic equity order books with a combined value of £210.4 billion (€239.6 billion), down 19% on May 2010 (£259.6 billion).

The average daily value traded on the group's MTS debt cash markets during the month was up 31% year-on-year, at £9.7 billion (€11.0 billion). On the MTS Repo market, the average term adjusted daily value traded increased by 11% year on year to £213.2 billion (€242.8 billion).

The average daily value traded on the LSEG's retail bond markets was €737 million (£647 million), down 33% on the same month last year. The average daily number of trades was down 18% at 14,436.

On the group’s derivatives platforms, the total number of contracts traded was 10,142,225 in May 2011, down 11% compared with 12 months previously, while exchange traded products was also down 13% year on year, to £11.5 billion (€13.1 billion). The total number of trades was down 15% at 401,437.

Turquoise's own derivatives market launched today, trading FTSE 100 futures contracts, with eight shareholder banks signed up to trade on the platform. The MTF plans to launch additional contracts on the platform when it secures the necessary licences.

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