The London Stock exchange has recently launched its brand new derivatives markets after its long awaited summer takeover of the Turquoise derivatives.

During the third quarter, the LSE which at that time owned a 51 % stake in Turquoise, swapped its derivatives into its regulated markets as part of its Recognised Investment Exchange (RIE). The platform was later renamed as the London Stock Exchange Derivatives Market.

The venturing was an indicator that a step was initiated to fend off the expected increase by allowing clients to go through LSE’s RIE for a much better use. Derivatives trades on the current platform paved a faster rate than trades cleared by Turquoise Derivatives which were actually an MTF. Under European Market Infrastructure Regulation (EMIR), derivatives executed on regulated markets may now be possible to clear in two days instead of five.

From the recent week, the LSE says that a new contract futures will be made available to trade on the platform. The index, which is designed and managed by FTSE Group, opt for the most liquid stocks from within each industry in the FTSE UK large cap index.

Market makers including BNP Paribas as well as Timber Hill Europe, have committed in supporting the new product. Other well renowned and reputable institutions have confirmed their participation in providing a convenient platform based on providing better access to their products.

The new contract is now designed for cross margining with the FTSE 100 index futures provided on the similar trading volume. The new derivatives market will maintain in their services in the range of the UK, Norwegian and Russian derivatives.

At London Stock Exchange Group, the preliminary step in expanding a strong, diverse derivatives business in the UK will provide for additional innovations and alternatives in better managing risks on the UK equity market. However, from a group perspective, this builds on the successful progress in the previous months which include durum wheat futures as well as single stock dividend futures.

Finally, the FTSE UK Large Cap SLQ index mirrors the performance of the primary leading UK stocks, with a focus on liquidity and ease in terms of duplication. It further represents an additional expansion in the type and diverse range of innovative and transparent products FTSE is assisting in trading participants to a much convenient way of accessing trade.

Last Updated: January 22nd, 2021