Turquoise, the pan-European equity trading services company, has been granted additional permissions by the Financial Services Authority (FSA) allowing it to operate a liquidity aggregation and order routing service which will launch in early July 2009.
TQ Channel is the first service of its kind in Europe. Leveraging Turquoises independence and its network of market participants, TQ Channel will provide a single point of access to non-displayed liquidity from major trading firms, allowing Turquoise clients to take advantage of otherwise inaccessible liquidity in over 1,700 securities in 15 European markets.
Turquoise will route and distribute orders to connected liquidity providers to execute trades with minimal market impact and obtain improved execution prices. Its centralised infrastructure will offer a meeting point for otherwise fragmented liquidity and a place where institutional size trades will execute securely. Counterparty risk is mitigated through a fully-cleared application, with efficient, low-cost settlement achieved through the use of EuroCCPs centrally cleared facility, netting with all other Turquoise trades.
From the beginning, Turquoise has been committed to providing innovative, differentiated value to our community, says Eli Lederman, chief executive, Turquoise. We are thrilled to add TQ Channel to our company, and we look forward to the real benefits it will provide to our users.
The Turquoise MTF has been building market share across Europe based on its quality as a best execution venue with compelling economics. TQ Channel complements this by providing aggregated access to non-displayed liquidity, with anonymity and the security of a fully-cleared solution. Institutional investors will benefit from the efficiency of high cross rates for large and less liquid orders, while obtaining price improvement and minimising information leakage. The incentives for our liquidity providers will ensure a high-quality offering from inception.
Turquoise is dedicated to improving the quality and efficiency of trading, bringing down the cost of execution while also increasing its quality. The release of TQ Channel is another step towards achieving this goal.
L.D.