Turquoise, the much-anticipated European equity trading venue established by nine leading European investment banks, is planning to include a real-time market surveillance system when in launches in September. The surveillance system will be constructed with Progress Software and Detica.
Progress Software’s Progress Apama Complex Event Processing (CEP) Platform, whose complex event processing technology allows traders, regulators and exchanges to instantly and continuously analyze, evaluate and respond to market events in real-time, will be used in conjunction with Detica’s market surveillance and trading expertise. The two products will collaborate to deliver a real-time and post-trade market surveillance system that captures breaches of trading rules, roots our market irregularities and develops enhanced trading execution analytics.
Progress Software is a Microsoft partner, and its Progress Apama Event Processing Platform is a key component of Microsoft's MiFID (Markets in Financial Instruments Directive) solution suite. Progress Apama’s platform runs on Microsoft Windows Server 2003, Microsoft SQL Server and Microsoft BizTalk Server. Detica is a specialist business and technology consultancy that includes Microsoft as one of its clients. Detica focuses on turning complex information into relevant and actionable intelligence, and it has developed sales-related risk management processes for Microsoft across Europe, the Middle East and Africa.
Turquoise is a planned pan-European open trading platform treating all participants equally. The plans are for it to have an integrated dark and transparent order pool, combining and matching dark and transparent orders to enable users to obtain price improvement for small orders and trade large orders efficiently while minimizing information leakage. Backed by the largest investment banks in Europe, it is expected to have a critical mass of natural liquidity from day one.
Eli Lederman, chief executive of Turquoise says that Progress Software and Detica were selected in part because of the flexibility they could bring to a market surveillance system. "Market surveillance is a vital requirement for any stock exchange. By choosing the Apama platform and deploying Detica's expertise, we also gain a very flexible system. This will allow us to add value to the market data we collect and offer further client services such as detailed analysis of transactions and a better understanding of price improvement and performance," he says.
He says Turquoise is being prepped for a live launch in September, with trading in 300 stocks and a roster of top market-makers on board from day one. It will gradually roll-out to encompass some 1200 stocks in a darker liquidity pool.