Sponsored Access
London Stock Exchange Sponsored Access
What is Sponsored Access?
London Stock Exchange's Sponsored Access service allows customers a direct technical connection to the London Stock Exchange's electronic order book under the trading codes of a sponsoring firm. Sponsored Users will be able to execute low latency strategies in all centrally cleared securities, including FTSE100 and FTSE250 stocks, International Order Book, ETFs and ETCs. A parallel service is also available to access pan-European lit and dark order books operated by Turquoise.
- Retain broker execution relationship
- Independent connectivity
- Option to host in LSE data centre
- Cancel on disconnect
- Post-trade drop copy
- Trade Turquoise pan-European MTF with the same infrastructure
- Direct access to the deepest pool of liquidity in UK equities
- Execute low-latency strategies in FTSE 100, FTSE 250, ETFs, ETCs and all other centrally cleared securities
- Trade the centrally cleared instruments of the LSE's emerging market service: International Order Book
- Establish a technical connection to the LSE's trading system while retaining a broker execution relationship
- Full range of LSE connectivity options, including ultra-low-latency exchange hosting
Service overview
- All orders are submitted under the codes of the sponsoring firm and subject to the same rules and supervision as member firm flow
- Exchange-level controls intermediate the sponsored user's flow on behalf of the sponsoring firm
- Participants connect to London Stock Exchange based on the native interface
- Sponsoring firms are provided with a drop copy service in order to monitor the sponsored user
- Sponsoring firms have access to a sponsored portal allowing them to remotely modify certain parameters of the Exchange-level controls
- Sponsored users can receive market data directly from London Stock Exchange or from a vendor
Sponsored users have a choice of connectivity options to access London Stock Exchange’s trading system, ranging from ultra-low latency exchange hosting to Extranex and third-party network providers. Hosted participants also benefit from a carrier-neutral connectivity model between their hosted equipment and their external locations.
Exchange level controls provide a layer of pre-trade risk management, while the post-trade drop copy allows the sponsoring firms to view the sponsored users' activity. Sponsoring firms also have access to a sponsor portal where they can adjust certain parameters of the Exchange level controls that apply to their individual users.
In the event of the sponsored user losing their connection to the trading system, or the sponsoring firm losing their post trade drop copy connection, all sponsored user open orders will be cancelled.
Sponsored users apply for the service via their chosen sponsoring firm.
Turquoise Sponsored Access
Sponsored Access allows Turquoise participants to provide direct trading access to non-participants through their membership, with the assistance of risk control mechanisms.
Turquoise risk controls
Sponsored Access is a service which is provided based on a set of pre trade validation checks which are carried out on all orders (including Block Indications) coming from a sponsored user. This assists sponsoring firms in managing their risk, while allowing sponsored users direct access to Turquoise liquidity, including Turquoise Block DiscoveryTM.
- Price Band Validation.
- Restriction on un-priced Market Orders.
- Maximum Order Value and/or Maximum Order Volume.
- Maximum Gross Exposure (Traded + Open Consideration).
- Maximum Message Rate.
- Permissioning by order book and instrument group.
- Restricted Instrument Lists.
Sponsor visibility
A drop-copy of the entire conversation is made available for each sponsored participant via FIX. A sponsor portal GUI allows the sponsor to monitor the gross exposure of each sponsored participant, to adjust maximum gross exposure, and to suspend further trading by a sponsored participant.
Contractual agreement
Turquoise members who wish to offer Sponsored Access to their clients as a Sponsoring Firm must sign a Sponsored Access agreement with Turquoise for this purpose.
The sponsored user is not required to sign a membership agreement with Turquoise. However, the sponsoring firm is required to carry out due diligence of all sponsored users and must submit evidence of this to Turquoise prior to Sponsored Access being granted.
All orders entered by the sponsored user will be in the sponsoring firm’s names, and the sponsoring firm will be responsible for all trading activity carried out in their name.
HMRC has confirmed Stamp Duty Reserve Tax (SDRT) will not apply to Turquoise for its Sponsored Access service.
Protocol
Sponsored Access is offered via the standard Turquoise Native protocol, which is the fastest means of accessing the integrated and dark order books, and Turquoise Block Block Block DiscoveryTM.
Documents and downloads
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LSE plc Sponsored Access factsheet
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London Stock Exchange Sponsored Access application form
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Guide to Sponsored Access (MIT701)
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Millennium Exchange and TRADEcho Business Parameters
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Guide to Trading System (MIT201)
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Turquoise Sponsored Access factsheet
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Turquoise Sponsored Access Service Description
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Turquoise Sponsored Access application form
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Turquoise Sponsored Access Agreement
Contact us
Interested in Sponsored Access? Complete the form below and a member of our team will be in touch.