Turquoise the alternative stock trading venue set up by investment banks to take on national stock exchanges is now fully operational following a soft launched last month.
The company was launched by firms including Goldman Sachs and Morgan Stanley to compete with stock exchanges across Europe.
The company has been implementing off-the-shelf software IT for six months to ensure the trading platform is competitive in a fast-moving sector. The launch followed four months of testing and 22 months of planning.
About 30 investment firms are currently using Turquoise. A spokesman at Turquoise said there are 100 or so big traders that the platform is designed to attract, adding "We expect the majority of these to sign up by the end of the year."
Turquoise has used packaged software to make replacing components easier and cheaper compared with the cost of developing them internally. It also uses inexpensive servers from suppliers such as Hewlett-Packard so it can increase capacity easily.
Eli Lederman, CEO at Turquoise, said, "Controlled roll out means that Turquoise has been introduced responsible and we are pleased with initial market share gains."
Jon Cosson, head of IT at Stockbroker JM Finn, welcomed any additional trading venue.
He said the company is always looking for alternative venues to complete trades. "Any thing that can reduce the cost of trading is a good thing."
Turquoise IT infrastructure
Turquoise is using off-the-shelf technology, including its core trading platform from supplier Cinnober, and a combination of Progress Software and Detica technology for its market surveillance application. It uses software from Neonet to provide market data and EuroCCP for clearing and settlement services.
The infrastructure is housed in two datacentres run by financial services IT service provider BT Radianz and is made up of HP blade servers running on a Red Hat Linux operating system.