News and resources on capital markets, exchanges, trade execution and post-trade settlement.

Turquoise settles US shares with DTCC

Source: Turquoise

Turquoise, LSEG’s (London Stock Exchange Group) global securities trading platform, has today announced an expansion of its service with a newly enlarged US segment, with US shares now settling into DTC.

This expansion will allow global investors to trade in a greater number of US stocks through one connection, alongside UK, Swiss and European securities.

Turquoise enables trading to take place during regular London trading hours, overlapping with Asian and US time zones, and making it easier for investors around the world to access a wider range of securities at a time that suits them. The platform will also offer an expanded universe of nearly 4,300 international securities, including 223 US blue chips, US ETFs and ADRs. Trading fees for US securities are being waived for members through the end of 2021.

The new offering improves access for investors in Asia and other geographies around the globe. Brokers will be able to send client orders in US equities from 15:00 in key Asia time zones* for matching on Turquoise with fungible settlement in DTC via electronic STP.

Trades can take place between 08:00 and 16:30 UK time providing greater overlap with Asian and US trading hours. The securities are available on the Turquoise Lit Order Book™ (TRQX). Market, Limit, Iceberg and Hidden order types are supported. Traded US securities are cleared via LCH Limited’s EquityClear, with fungible settlement into Depository Trust Company ‘DTC’ (the US Central Securities Depository ‘CSD’), which means investors can trade and manage their positions in one location.

Dr Robert Barnes, Group Head of Securities Trading & CEO Turquoise Global Holdings, said:
“The expansion of Turquoise’s global platform is a significant step for investors. The tool will give investors a greater access to a wide range of global securities of the main UK, Swiss, European and US markets. It will allow them to trade based on more information, at a greater speed and at a reduced cost than they have been able to before. The expansion also means the global investor community can trade on securities from nearly anywhere in the world at a time that suits them.

“Using Turquoise an investor in Asia can trade a US stock like Apple from 6 ½ hours ahead of the US market open.”

Access to the new trading functionality is available to existing members of Turquoise by requesting access to US Market on their existing dashboard and is available from 5 October 2021. Non-members wishing to use this service can become a direct member of Turquoise with clearing and settlement arrangements in place, or go through brokers with access to Turquoise. To support the trading of US securities, Turquoise expects liquidity providers to join the service in the coming months.

Securities of countries other than US that trade on Turquoise’s new expanded service also benefit from straight through processing to their respective settlement depository. For example, Swiss blue chips that trade on Turquoise will settle in SIX SIS, the national Central Securities Depository (CSD) of the Swiss financial market. International Order Book GDRs like Reliance Group of India and Samsung Securities of South Korea settle directly into Euroclear Bank. Turquoise offers investors the efficiency through a single connection access to a full value chain to trade a wide range of securities that seamlessly settle into the right destination among 21 country and international central securities depositories.

Comments: (0)