Turquoise Derivatives today announces that FTSE 100 Index Futures will be available to trade from the first week in June, subject to FSA approval.
In preparation for the launch, existing members, Turquoise customers, Independent Software Vendors and General Clearing Members are already testing the upgraded SOLA platform to ensure readiness for go-live. The SOLA platform is co-located next to the Turquoise and LSE cash equity markets.
Turquoise Derivatives will be the first derivatives market in Europe to employ a "maker/taker" tariff model, offering a 5p per contract rebate for passive flow and a 20p per contract fee for aggressive flow. This compares with a standard 25p per contract charge on alternative platforms. Turquoise will be the first to cap charges for OTC block trades in index futures products and to reduce per-contract clearing costs which will also be one third lower than competitors' charges.
Adrian Farnham, CEO of Turquoise said: "Participants are crying out for a genuinely competitive derivatives market in Europe, and Turquoise Derivatives is proud to be leading the charge in making that a reality. Brokers see this as a real opportunity to provide access to end-investors. We will build a competitive and open framework that will challenge the existing approach of other markets, bringing new trading opportunities and improved efficiencies to our customers.
"With key market makers, proprietary trading firms and banks confirmed and ready to support our launch, an innovative and competitive pricing model, further new products in the pipeline and a real opportunity ahead of us, we look forward to attracting a broad pan-European customer base to Turquoise Derivatives."
The introduction of trading in FTSE Futures is the first step in Turquoise Derivatives and London Stock Exchange Group plc (LSEG) plans to broaden its existing derivatives presence. LSEG has already successfully grown its Italian derivatives market, IDEM; has firmly established a presence in Russian stock options through IOB derivatives; and supports the development of the Norwegian derivatives marketss through its partnership with Oslo Bors.
The integration of EDX into Turquoise, to create Turquoise Derivatives, will complete at the beginning of May. This will provide Turquoise with a derivatives platform upon which to develop a pan-European offering whilst continuing to add further emerging markets products.
Turquoise Derivatives will use the model established by EDX, whereby CC&G provides clearing services and clearing technology and LCH.Clearnet provides central counterparty services. Subject to the granting of appropriate consents, under this arrangement Turquoise is aiming to offer fungibility and/or margin offset with products traded on other markets that are likewise pro-competition.