The deal will create a new pan-European trading venture through the merger of Turquoise and Baikal Global, a specialist trading platform being developed by the LSE.
The new venture is designed to expand LSE’s services across Europe and drive European trading volume growth and promote venue choice.
The merged entity will be 60 per cent owned by the LSE and 40 per cent owned by the existing Turquoise shareholders, who are global investment banking clients of the LSE group.
It will build upon Turquoise’s existing pan-European lit order book and so-called “dark pool” trading platform which facilitates trades on large number of shares, as well as drawing upon Baikal’s product pipeline.
LSE chief executive Xavier Rolet says: “The European marketplace for trading securities has scope to become more efficient and to grow significantly in the coming years. Turquoise’s existing pan-European footprint is a strong proposition and together with the introduction of new trading technology and a neutral structure, we believe it is now well positioned to be an agent of change and to capture a healthy slice of the market’s growth potential.”