London Stock Exchange Reveals Strong Growth for Block Trading Products

Every FTSE 100 stock would be prevented from being traded in dark pool venues should current trading patterns persist in

London Stock Exchange today announced positive metrics over its hidden Midpoint Pegged orders, designed to facilitate large-in-scale dark trading, as well as strong volumes on its Turquoise Plato Block Discovery™ platform.

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Hidden Midpoint Pegged orders allow participants to enter orders above the large-in-scale threshold at the mid-price without displaying either price or volume to other participants. These orders can interact with both displayed orders and other hidden orders on the order book, which allows participants to maximise matching opportunities and interacting with both lit and dark liquidity.

In the post-MiFID II environment, which will significantly alter the use of dark pool and off-order book trading, participants using the new functions will benefit from a new central destination for trading large blocks of shares in a dark environment.

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According to the LSE’s statement, the exchange realises the importance of providing customers with choices in the post MIFID II trading environment as every stock in the FTSE 100 would be prevented from being traded in dark pool venues or off-order book should current trading patterns persist in 2017.

Meanwhile, London Stock Exchange also announced that there has been over €8.5 billion traded on Turquoise Plato Block Discovery™ since launch in October 2014. The exchange also reported a higher average trade size at €312,099, which is over 30 times more than the industry dark pool average.

Brian Schwieger, Global Head of Equities Products at London Stock Exchange, commented: “2017 will be the year that the industry moves into top gear preparing for MiFID II and we expect even greater focus given to the problem of working through the double volume caps. We have worked with our customers to launch and develop a suite of innovative new trading services whose adoption is already playing a significant role in the evolution of equities trading that we expect will gather momentum next year.”

 

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