Electronic trading platform Turquoise has confirmed it will seek “strategic investors” to boost its coffers ahead of the expiry of a liquidity deal backed by nine investment banks, according to reports.
The Financial Times said the move for new funding comes two months after Turquoise was launched as an alternative to Europe’s established trading systems.
Founded with support from banks including BNP Paribas, Credit Suisse, Morgan Stanley, Goldman Sachs and UBS, the platform had a market making agreement that guaranteed it a certain level of liquidity. However, that agreement expires in March.
Turquoise chief executive Eli Lederman confirmed to the publication that it is in talks with “potential strategic investors”. He said the move would help ensure the “continued development” of the platform.
In addition, Turquoise is launching an equity incentive scheme that will allow its existing members to earn equity based on their trading levels.
Since its launch, Turquoise claims to have carved out a 5% market share in the 13 European equities markets in which it operates.
D.C.