Turquoise equity volumes soar but derivatives struggle

Trading on London Stock Exchange Group’s Turquoise multilateral trading facility increased by more than two thirds over the past year, according to figures released today.

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Trading on London Stock Exchange Group’s (LSEG) Turquoise multilateral trading facility (MTF) increased by more than two thirds over the past year, according to figures released today.

In its pre-close period update, the markets operator revealed broadly strong performance in equities and clearing services, but derivatives volumes were down sharply.

Total value traded on pan-European venue Turquoise reached €285.4 billion in the five months to 31 August, up 67% from €170.7 billion in the same period of 2012.

The group’s main UK market saw traded value of £441 billion, a more modest increase of 6% compared with last year. Borsa Italiana saw the number of trades on the platform drop by 6%, though the entire equity market in Italy has shrunk since the country introduced a financial transaction tax on equities in March.

However, the group’s derivatives markets both saw a fall in trading volumes. Turquoise saw 7.4 million contracts traded in the five months to 31 August 2013, down 35% on the same period a year ago, while it’s Italian derivatives market IDEM’s contract volumes fell 29% to 12.5 million.

LSEG said the fall in derivatives trading reflected broader trends across Europe.

The group’s LCH.Clearnet activities saw strong growth.

SwapClear notional cleared value of interest rate swaps reached US$205.1 trillion, up 29% on the same five-month period in 2012, while membership of SwapClear increased by 46% to 98.

CDSClear saw a big jump in notional cleared value of credit default swaps, as did its FX clearing service ForexClear, up 450% and 143% respectively. The group put the growth down to new product offerings and organic growth of its clearing business.

Commenting on SwapClear’s development, LSEG’s group chief executive, Xavier Rolet, said: “We have seen exiting growth from SwapClear, as it continues to develop its interest rate swap clearing business in the US and elsewhere.”

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