Turquoise, the yet-to-launch pan-European equity trading platform, has selected Swedish technology provider Cinnober for its trading platform technology and appointed a CEO.
Following months of industry speculation that OMX Group, the Nordic exchange and technology provider, was set to become the technology provider, Turquoise – which is being set up by seven leading European investment banks – has instead plumped for Cinnober Financial Technology for its trading platform TRADExpress.
OMX was the likely contender due to reported reverse takeover talks between small UK stock exchange Plus Markets - which uses OMX technology – and the banks behind Turquoise. By taking over Turquoise, Plus Market would have competed directly with traditional stock exchanges, such as the London Stock Exchange, while Turquoise would have benefited from a technology platform.
But last Friday, Plus Markets announced talks of a proposed transaction with an "unannounced party" had been cancelled because the deal failed to deliver sufficient benefits to all its existing shareholders. It never disclosed with whom it had been talking.
Today Turquoise stated it had conducted an "in-depth review of a wide range of possible suppliers" before selecting Cinnober for its TRADExpress technology. The platform "best matched Turquoise requirements for a state of the art, functionally rich solution with exceptional reliability and low latency".
Turquoise also announced it has appointed Eli Lederman as its chief executive officer. Lederman is currently managing director in Morgan Stanley’s sales and trading division, where he oversees the European electronic trading business for equity and fixed income products.
In April, Turquoise said that the clearing and settlement function would be delivered by EuroCCP, a subsidiary of DTCC. The consortium said: "the combination of EuroCCP with a Cinnober platform will give Turquoise the ability to drive down the total cost of trading. The system is expected to be fully functional by the end of next year."
Jan Arpi, CEO of Cinnober, said: “The competition for this assignment has been fierce and delivery demands are very high, so I am delighted that Cinnober came out as Turquoise’s selected technology partner. Together with the similarly innovative BOAT project, this further strengthens our position as a leading independent technology provider to marketplaces.”
Lederman said: “We have in Turquoise the key ingredients for success – expertise, liquidity and great motivation. The consortium has done important work for us to build upon and with my appointment we will now streamline decision-making and move this young business forward quickly. A successful Turquoise will inject competition into Europe’s trading venues and improve market dynamics in terms of cost, technology and overall quality of execution. All market participants, including end-owners of assets, will share in the benefits.”
The consortium also revealed that two additional investment banks, BNP Paribas and Société Générale Corporate and Investment Banking have each taken a 3% stake in Turquoise, bringing the total number of members to nine.