The Gateway to Algorithmic and Automated Trading

Turquoise, the LSE and the Fragulator - 2 October 2009

Fidessa : Fidessa - 1st January 1970

The opinions expressed by this blogger and those providing comments are theirs alone, this does not reflect the opinion of Automated Trader or any employee thereof. Automated Trader is not responsible for the accuracy of any of the information supplied by this article.

I was wondering the other day whether we might run out of space on the web site soon as more and more venues are created. Well, the good news is that Xavier Rolet and Eli Lederman may have helped us solve that problem (LSE in talks to buy Turquoise).

Assuming that the proposed acquisition does indeed go ahead, it will be interesting to see how this will affect the trading landscape. What will happen to the liquidity currently residing in Turquoise? Will the LSE want to reinstate the original Liquidity Provision agreements? How will Turquoise interact with Baikal, from both a technology and a personnel perspective?

It's too early to tell just yet but it is clear to see that the LSE is making sure it has plenty of new pieces on the board, which has to be a good thing. Also, it will help the LSE in its desire to align itself more closely with the interests of its biggest customers as they are also Turquoise's current owners. And, of course, it will give the LSE a European shop front that it can open tomorrow. It did strike me, though, that the LSE's approach can be contrasted with that of NYSE Euronext, which Jeremy Grant and Michael Mackenzie wrote about in FT Trading room on Tuesday (NYSE Euronext bets on 'co-location' centres). In the article, they describe how NYSE Euronext is investing huge sums of money in co-location facilities both in London and New York. This will be combined with its UTP network that ultimately aims to provide a single point of access regardless of what you want to trade, where or how.

Back at Fidessa Towers we have been ringing the changes, too, with the launch of the Fragulator which allows you to see the trading pattern of any stock over any time period across both lit and dark venues. The clever chaps back at Fidessa Labs have spent the summer working on this and you can see the results of their efforts by clicking here or on the Fragulator tab from the home page. Simply enter any European stock name (the system will prompt you with suggestions as you type), hit the "show report" button and hey presto!

You will also see this icon  next to any stock that appears on the regular site. Clicking on this icon will enable you to fragulate any stock.

The guys have assured me that the interface is idiot proof (which is a bit strange because they were very insistent that I spent a lot of time testing it) but please let us have your feedback and suggestions for what else you would like to see.

Try comparing the VWAPs or Average Trade Sizes between the different types of execution venue - you might get a few surprises. To change the granularity of the report simply hit the "show more" or "show less" buttons. If you want to extend the time period (we currently have 12 months' worth of data) then log in by entering your email address and a password of your choice. Don't worry, it's still free and you will only have to do this once.

As always my thanks go the guys at Fidessa Labs for making it all possible.