What is Turquoise Retail Max?
Turquoise Retail Max is the latest offering providing a transparent best execution service for the European Retail broker, designed to deliver price improvement for the end retail investor across Europe, UK, and Swiss securities.
Retail brokers that use Turquoise Retail Max can meet their best execution obligations on pan-European securities thanks to its dynamic mechanism. A fair and open auction means retail orders will interact with diverse sources of liquidity by both market participants and specialist retail liquidity providers using Turquoise Retail Max. In order to achieve the best possible outcome, retail orders are at the centre of the price-formation mechanism delivering price improvements in a transparent multilateral order book.
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Turquoise Retail Max benefits for retail investors
Scope and access
- Single point of access for pan-European securities.
- Network of existing members who will offer access to the service.
- Participants may use limit, pegged to mid, pegged to bid and pegged to offer order types.
Price improvements
- Concentration of liquidity at one point in time achieved through a truly multilateral price formation mechanism based on diverse market participants’ interests, including retail orders and liquidity providers.
- Opportunity for price improvement to primary market midpoint through the auction process which maximises volume towards Midpoint price executions.
Additional visible liquidity
- Retail liquidity providers will offer liquidity during market hours.
- Pre-trade order book transparency, including visible liquidity provider limit orders.
Pegged orders
- Pegged to midpoint orders allow for Primary Market Midpoint execution.
- Aggressive pegged order helping you achieve best execution
- A Buy order pegged to the Primary Market Best Offer price ensures an order can never be executed at a price higher than the Primary market’s best offer price.
- A sell order pegged to the Primary Market Best Bid price ensures an order can never be executed at a price lower than the Primary market’s best bid price.
Real-time market data
- Real-time market data redistribution licence fee is waived for retail brokers.
Fees
- Fees waived for retail brokers.
- Discounts offered to liquidity providers executing at primary market midpoint.
How does Turquoise Retail Max work?
Turquoise Retail Max is available through the Turquoise Periodic Auctions order book, and will help retail brokers achieve better best execution for their clients through the following process:
Note: This infographic is provided in both visual and text formats so that all users can access the information in the way that suits them best.
How the retail matching mechanism works
This infographic explains how retail buy and sell orders move through the retail matching mechanism to achieve fair and transparent execution.
- Starting point: the initial market price
The process begins with the current bid price of 51.00 and the offer price of 52.00. - A retail investor places matching buy and sell orders
A buy order is entered at 52.00 and a sell order is entered at 52.00. Because the prices align, the mechanism detects a potential match. - An automated auction is triggered
The system automatically starts an auction whenever a possible match occurs.- The auction aims to select the midpoint price that maximises executed volume or is closest to it.
- Each auction lasts between 50 and 100 milliseconds.
- Orders can be updated during the auction
While the auction is running, participants can submit new orders, amend existing ones or cancel them.
They can also choose to defer order cancellations until the end of the auction to keep liquidity available. - Example of price improvement
Additional sell orders appear at 52.00, 51.25 and 51.50, with a buy order at 51.50.
These flow into the mechanism and inform the final midpoint. - Outcome: the midpoint execution
The auction concludes with the buy order executing at the primary market midpoint of 51.50. - Why this matters
By placing retail investor orders at the centre of price formation, the mechanism supports better, more consistent execution for retail customers.
Contact us
Interested in finding out more about Turquoise Retail Max?
If you’d like to talk to us about Turquoise Retail Max, please contact us via the form and a member of our team will be in touch.
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Tom StenhouseCEO Turquoise and Head of Product, Equities Trading
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Elian MatthijssenDirector, Turquoise -
William FennaRetail Trading & Personal Investing Lead