• London Stock Exchange Derivatives Market goes live
• New product, FTSE UK Large Cap Super Liquid index futures tradable from 7 October
• UK, IOB and Norwegian derivatives now trading on a Regulated Market of an RIE
London Stock Exchange plc has today completed its acquisition of Turquoise Derivatives, the derivatives business of Turquoise Global Holdings Limited (“Turquoise”). The platform has been renamed London Stock Exchange Derivatives Market.
The market now operates as part of a Regulated Market of a Recognised Investment Exchange (RIE), allowing customers to improve the efficiency of their clearing and margin arrangements in light of the requirements under the European Market Infrastructure Regulation (EMIR).
From 7 October 2013 a new contract, FTSE UK Large Cap Super Liquid index (FTSE UK SLQ) futures will be available to trade on the platform. The index, which is designed and managed by FTSE Group, selects the most liquid stocks from within each industry in the FTSE UK large cap index. A number of market makers, including BNP Paribas and Timber Hill Europe, have committed to supporting the new product. Other institutions including Barclays, Goldman Sachs and Nomura have confirmed they will provide client access to the product. The new contract is eligible for cross-margining with FTSE 100 index futures offered on the same trading venue. The new derivatives market will continue to offer trading in a range of UK, Russian and Norwegian equity derivatives.
Nicolas Bertrand, Head of Equity and Derivatives Markets at London Stock Exchange Group, said:
“This marks an important step in growing a strong, diverse derivatives business in the UK. The Super Liquid futures will provide our derivatives customers with an innovative, alternative way to manage risk on the UK equity market.
“From a Group perspective, this builds on the successful progress of our Italian market, IDEM, which has seen the roll out of a number of new products in recent months, including durum wheat futures, and single stock dividend futures.”
Sudir Raju, Managing Director at FTSE Group, said:
“The FTSE UK Large Cap SLQ index reflects the performance of leading UK stocks, with a focus on liquidity and ease of replication. It represents a further expansion in the type and range of innovative and transparent products FTSE is helping trading participants to access.”