Cinnober congratulates customer success - Turquoise tops monthly dark trading

08 Jul 2010 News alert

Turquoise’s innovative trading platform, combining dark and lit order books, has continued its recent growth, leading the European dark pool race for the first time on a monthly basis in June.

“We’re of course delighted to see Turquoise pass this milestone,” said Jan Arpi, CEO of Cinnober. “The dark pool functionality was a key area that we and Turquoise focused on back in 2007 when we designed their trading system.”

According to June figures from Thomson Reuters, Turquoise’s mid-point only dark book traded €4.305 billion, squeaking by Chi-Delta’s €4.3 billion. Chi-Delta, the dark pool operated by Chi-X Europe, lost its lead for the first time in over a year in a significant shift of volumes.

The primary trigger to this shift in Turquoise’s favor was the buy-side reaction to “potential data leaks” at rival European dark pools, as reported in a May white paper from Themis Trading, a US agency broker. The Cinnober-delivered trading solution in use at Turquoise was immune, having addressed these issues from the earliest stages of development. Both Chi-X and BATS took immediate steps to amend their post-trade data feeds, which has helped them gradually recover volumes. 

“The Turquoise platform, running on Java and Linux, is meeting extreme daily demands for throughput and capacity with low latency,” Arpi continued. “And this is even more impressive when you consider that Turquoise has achieved this operational level without making any investment at all in hardware and networking in the last two years”.

Dark pools are used to place large orders in the hope of finding a match without market impact. Preventing data leaks is vital. The Cinnober solution in place at Turquoise since 2008 has provided comprehensive dark pool functionality with outstanding reliability – as attested by the migration of volumes the last month. 

The trading engine Turquoise uses today is based on Cinnober’s TRADExpress platform, running on Java and a Red Hat Enterprise Linux implementation. Cinnober is the leading independent provider of marketplace technology, delivering solutions for trading, market data distribution, market surveillance, clearing and real-time risk management. The company has supplied advanced solutions to prominent trading venues such as Alpha Trading Systems, Burgundy, the Chicago Board Options Exchange, the London Metal Exchange, Markit BOAT, NYSE Liffe and Turquoise.