Transcript PowerPoint template - SwedSec Licensiering AB

Swedish Securities
Dealers Association
New European Market Places Seminar
8th October 2008
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Turquoise
Live trading
Weekly traded value
Weeks 18/08/2008 to 03/10/2008
7
Total Value of Trades (EUR Billions)
6
5
4
3
2
1
0
18/08/2008
25/08/2008
01/09/2008
08/09/2008
15/09/2008
22/09/2008
29/09/2008
Week Commencing
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Market share
Total
5.00%
4.50%
4.00%
3.50%
3.00%
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
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Turquoise
Getting to launch
Our people
From a project to a company
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Our partners
Specialist providers
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Trading members
Public members
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Technology
Proactive engagement with vendors
ISV
MDV
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Network
9
Turquoise
Our offering
Turquoise
Overview
FSA Regulated
MTF
Dedicated Client
Relationship Manager
Live in
13 Markets
Technical Account
Manager
Integrated Visible
and Dark Trading
Market
Operations
Clearing via
EuroCCP
Surveillance
Technology
•Tested
•Low Latency
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Trading on Turquoise
Tariff schedule
Trading Fee
Market wide volume
bps
(daily executions)
Gross
executions
Passive
-0.15
0 – 400,000
€
0.0600
Aggressive
0.35
400,001 – 800,000
€
0.0525
Dark
0.50
Over 800,000
€
0.0250
Settlement
Net sides
Order Management
FREE
Membership
FREE
Market Data
FREE
€
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0.90
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Technology
High capability
• Observed Latency 1.8 - 2.1 ms average
• 30 million inbound messages per day
• 209,248 trades on 16th September
• 2,000 messages per second observed peaks
• Twin sites with ‘synchronous’ hot standby
• Choice of connectivity – FIX or native API
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Trading functionality
Sophisticated order controls
• Integrated platform
– Allows dark orders to maintain exposure to order book trading volume
– Enables smaller orders to trade at improved prices when hitting a dark order inside
the spread
• Dark orders
– Orders exceeding MiFID Large in Scale placed as dark orders are not displayed
within Turquoise market data
– Dark orders trade against both other dark orders and visible orders
• Minimum Acceptable Quantity (MAQ)
– Ensures that information on your order is only given up when a significant trading
opportunity arises
– MAQ calculation performed against a combination of orders
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Trading functionality
Sophisticated order controls
• Matching criteria
– Turquoise matching logic is Price, Visibility, Time
– Visible orders execute before dark, iceberg balance and discretion orders at the
same price point
• Pegging
– Orders can track the best bid or offer from either Turquoise or a combination of
European markets
– Dark orders can peg inside the BBO in 1/10th tick increments
• Price discretion
– Discretion applied to limit orders ensures first reaction to rapid market changes
– Execution secured before information on the incoming order is made public
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Trading functionality
www.tradeturquoise.com
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Summary
• Averaging over €1 billion of matched trades
• Peak at €2.2 billion – October 7
• Averaging over 4% of FTSE, CAC and AEX, over 3% overall
• Best of breed technology
• Diverse member network
• Choice of ISV’s, MDV’s and Network providers
• 13 markets live, 1,300+ securities
• Integrated Visible and Dark trading
• Competitive Maker-Taker pricing model
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