London Stock Exchange Group and Global Investment Banks to partner in pan-european trading venture

London Stock Exchange Group And Global Investment Banks To Partner In Pan-European Trading Venture - Acquisition Of Turquoise And Merger With Baikal


London Stock Exchange Group plc (LSEG) and Turquoise Trading Limited (Turquoise) today announced their agreement to create a new pan-European trading venture through a merger of the businesses of Turquoise and Baikal Global Limited (Baikal).

The new venture, an FSA regulated Multilateral Trading Facility (MTF), will expand LSEG services across Europe in both lit and dark trading, and liquidity aggregation, with the express objective of driving European trading volume growth and promoting venue choice. It will benefit from synergies with LSEG infrastructure and the planned migration to MillenniumIT trading technology.

Continuing to trade under the Turquoise name, the merged entity will be 60 per cent owned by LSEG and 40 per cent owned by the existing Turquoise shareholders, who are global investment banking clients of LSEG. LSEG intends to broaden equity participation in the new venture by selling up to a further nine per cent of the issued share capital to other interested parties. LSEG will retain a majority shareholding in the new venture.

As a neutral venue, Turquoise will be open to all market participants active in Europe and will be designed to inspire the confidence of the region's regulators. Exchange operated, the new venture will build upon Turquoise's existing pan-European lit order book and successful dark pool, as well as drawing upon Baikal's innovative product pipeline.

Commenting on the agreement, Xavier Rolet, CEO of LSEG and Chairman-designate of the new venture, said:

"We are very pleased to be joining forces with a number of our major clients in a partnership which we believe will offer an attractive range of innovative and competitively priced products and services across Europe.

"The European marketplace for trading securities has scope to become more efficient and to grow significantly in the coming years. Turquoise's existing pan-European footprint is a strong proposition and together with the introduction of new trading technology and a neutral structure, we believe it is now well positioned to be an agent of change and to capture a healthy slice of the market's growth potential."