The London Stock Exchange (LSE) has sold nine per cent of its 60% stake in the merged Turquoise and Baikal businesses to Barclays, JP Morgan Cazenove and Nomura, with each bank paying £1 million for a three per cent stake.
The LSE agreed a deal late last year to take majority control of the Turquoise MTF and merge it with the Baikal dark pool with the platform's nine investment bank owners holding a combined 40% share.
Under the deal, the LSE agreed to fund the cash needs of the combined business for the first two years and take a £20 million charge to cover restructuring and the write-off of legacy technology costs.
The exchange said at the time that it hoped to broaden equity participation in the new venture - which will continue to be called Turquoise - by selling up to a further nine per cent of the issued share capital to other interested parties.
Now, Barclays, JP Morgan Cazenove and Nomura have agreed to join the founding fathers and the LSE on the merged entity which will use technology from the LSE's IT subsidiary MillenniumIT, replacing the current Cinnober platform employed at Turquoise.
David Lester, CEO, Turquoise, says: "Our desire is to work with all participants to grow the market for trading European shares and Turquoise's share of that marketplace in both lit and dark. We have set ambitious plans for this year with the introduction of new trading technology and additional products and services as well as promoting existing products such as TQ Lens, the innovative non-displayed liquidity aggregation service."
Alan Carruthers, head, cash equities, Emea, JP Morgan Cazenove, adds: "We are very excited about our new partnership with the London Stock Exchange Group. LSEG's commitment to investing in new trading technology and developing new products and services will position Turquoise well in the competitive pan European MTF landscape."