LSE Takes Control Of Rival Trading Platform Turquoise

The LSE is taking over Turquoise, the loss-making trading platform set up by the world’s leading investment banks.

It will merge Turquoise with its own Baikal operation, to create "a new pan-European trading venture,” the London Stock Exchange said.

Turquoise was set up four years ago by investment banks who were unimpressed with the cost of trading on the LSE, according to a report in UK daily, The Guardian.

The deal, which will see the London Stock Exchange take a 60% stake in Turquoise as part of the agreement, will give the LSE control of Turquoise's dark pool trading platform.

The LSE will retain and extend the Turquoise brand, which, with the backing of its investment bank owners -- Merrill Lynch, Goldman Sachs, Deutsche Bank, Citigroup, Credit Suisse, Morgan Stanley and UBS -- has built a strong profile despite the platform lagging other competitors that have emerged in recent years to erode the dominant bourse's market share, the UK’s Telegraph newspaper reported.

Xavier Rolet, CEO of the LSE, said in a statement that the partnership will yield "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,” he said.

“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.

The LSE plans to "broaden equity participation" by selling some shares to third parties, but will not surrender majority control.

Melanie Rodier has worked as a print and broadcast journalist for over 10 years, covering business and finance, general news, and film trade news. Prior to joining Wall Street & Technology in April 2007, Melanie lived in Paris, where she worked for the International Herald ... View Full Bio