Turquoise, the pan-European equity trading services company, announced today that they are extending the economic advantages of trading equities on an MTF to depository receipts in Europe.
Turquoise’s Depository Receipts service offers an alternative venue on which to trade DRs with the same cost and liquidity benefits offered by Turquoise in the equities market, all cleared through EuroCCP. The service, which went live at the beginning of this month offers 120 of the most heavily traded Depository Receipts.
Eli Lederman, Turquoise Chief Executive, commented: “Turquoise is delighted to extend to its members the same access and efficiency to depository receipts that they enjoy in cash equities trading. The addition of the new securities has attracted new members with significant focus on DRs to access overseas markets. We are also glad to extend our geographical coverage with new members Otkritie and Metropol UK, who will be able to gain the same level of access and efficiency to depository receipts throughout execution, clearing and settlement to that experienced in European equities trading.”
Otkritie and Metropol UK will be the first Russian brokerages to take up trading Depository Receipts on Turquoise. “Turquoise’s proposition a valuable new channel for DRs, with better pricing and risk managed clearing.” commented Alan Brooks, Vice President Equity Sales, of Metropol UK.
“The opportunity to trade Depository Receipts on the Turquoise MTF is important to Otkritie as it provides us with an effective vehicle to maximise investments directly to international markets.” said Dr. Roman Lokhov, CEO of Otkritie Securities. Depositary Receipts comprise a significant segment of the international securities market. In 2008, US$4.2 trillion of Depositary Receipts was traded, up 27% on the previous year, and London-traded Global Depositary Receipts accounted for $522 billion*.
*Statistics from Citi Depositary Receipts Services, 2008 Year End Report