for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up
Financials

Turquoise plans to extend dark pool to Czech, Poland, Hungary

* Over 90 pct of trading in the markets is traditional

* Dark pool trading attractive to fund managers

LONDON, May 13 (Reuters) - Turquoise, the pan-European multilateral trading facility majority-owned by the London Stock Exchange Group, plans to extend dark pool trading to Polish, Hungarian and Czech stocks, its chief executive said.

Stocks from the three emerging European countries are already available for trading on the “lit” part of the business, in which prices and trade sizes are displayed.

More than 90 percent of equity trading in these markets is carried out on traditional exchanges in Warsaw, Budapest and Prague, according to Thomson Reuters data.

Dark pools are trading venues that allow investors to buy and sell shares anonymously, with prices displayed only after a transaction has taken place.

Since they do not provide trading information, such as trade sizes and prices, to the public prior to trades taking place, they are attractive to fund managers who often need to conceal trading intentions on large orders.

“We are looking to introduce the ability to do mid-point dark trading for the emerging country securities,” said Robert Barnes, chief executive of Turquoise, said in an interview, referring to the firm’s dark order book.

Barnes did not specify the launch date.

Rival Liquidnet offers dark pool trading for eastern and central European-listed securities.

Trading across the major European dark pools totalled 79.2 billion euros ($90.33 billion) in the month of March, according to LiquidMetrix, or roughly 6 percent of overall trading across all venues that month.

“There is a big opportunity in Europe to increase the overall turnover of equity trading. We are adding intra-day liquidity without taking the assets away from a particular country and without challenging the listing attractiveness of the primary market,” said Barnes. ($1 = 0.6920 pounds) ($1 = 0.8768 euros) (Reporting by Atul Prakash; editing by Andrew Roche)

for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up