London Stock Exchange delays Baikal launch

Turquoise may merge with LSE's Baikal

London Stock Exchange (LSE) is delaying the launch of its dark pool facility Baikal as the bourse continues talks with Turquoise over a possible acquisition, according to reports.

The dark pool facility – which allows traders to execute shares without displaying the pre-trade prices to rivals – could potentially be folded into Turquoise, a smaller LSE rival, if the acquisition goes ahead.

It was reported that the bourse has stopped short of testing Baikal with clients as it was concerned it would anger customers if further changes are required following a possible merger.

Using technology provided in partnership with specialist supplier Fidessa and financial services giant BNP Paribas, Baikal is expected to provide a “one-stop shop for navigating fragmented liquidity across Europe” to fend off rival exchanges or competing facilities.

In September, the chief executive at LSE, Xavier Rolet, said that growing regulatory pressures may cause the failure of Baikal and was quoted as saying the “regulatory evolution” that has taken place since the facility’s inception may signify a major hurdle.