The London Stock Exchange is to acquire the derivatives business of Turquoise Global Holdings, in which it owns a 51% stake.
The platform, which will be renamed 'London Stock Exchange Derivatives Market', will continue to operate as it currently does, but as part of a Regulated Market of a Recognised Investment Exchange (RIE).
The change in status will help the market to prosper in the face of upcoming post-trade regulations, which would classify trades made at a multilateral trading facility such as Turquoise as over-the-counter and thereby subject to higher collateral costs.
Turquoise will continue to operate a pan-European cash equities multilateral trading facility (MTF).
Completion of the transaction, which is subject to certain conditions, including regulatory non-objections, is expected to take place during Q4 2013.