Turquoise, a pan-European multilateral trading facility set up by nine leading investment banks, has chosen agency broker NeoNet to provide its inbound market data. The MTF will use NeoNet’s XG market data software to obtain real-time data from equity trading venues across Europe.
Yann L’Huillier, chief technology officer of Turquoise, told theTRADEnews that the MTF looked at two main criteria when choosing a market data partner. It wanted a provider that could match the speed of other offerings, but that was also small enough to be flexible and make quick changes. L’Huillier contends that larger vendors, while flexible, can take time to make adjustments.
“With the constantly changing and evolving environment under MiFID, which has only been in place for six months, we wanted to make sure that we formed a connection with a firm that was not too big, so that if we need a change made fast, it would be able to accommodate us,” L’Huillier says.
Another advantage of NeoNet’s offering was the location of its data centres. “NeoNet has four data centres in Europe, and has given us a good level of service for all major participants,” says L’Huillier.
Having fast, accurate data feeds is important to Turquoise’s strategy, L’Huillier explains. Firstly, the MTF will offer pegged orders, which are repriced based on new data. “The faster we get those market data, the faster we can reprice an order,” says L’Huillier.
Turquoise will also be executing orders at the mid-point. “To determine what that best market is we need to collect the data as fast as possible,” says L’Huillier. “If there is
a 10, 15 or 20 millisecond delay then we may not give our customers the right mid-point.”
Now the market data provider has been announced, all Turquoise’s technology is now in place. The next step is to ensure everything works as it should. “We are testing the functionalities of our engine, which is a given, but the crucial part is to test the performance and the reliability of our platform,” says L’Huillier. “We are going to do that with NeoNet, Cinnober, BT Radianz and all our partners.”