Mike Bellaro, chief executive at Plato Partnership

The new standards have been developed by Plato member firms with discussions having taken place between European exchanges including Deutsche Börse, Euronext, SIX Swiss Exchange and Nasdaq OMX.

Among the five proposed standards is the communication of order and trade status, in which trading venues are obliged to communicate order and trade status to members within 30 minutes of an outage.

Plato added that the communication will include an outage timestamp marking orders placed, and trades executed, before the outage timestamp as valid while those placed after will be void and cancelled upon service restoration.

Read more: FIX Trading Community’s Jim Kaye on the ins and outs of market outages

Elsewhere, as part of the new standards, all orders in the order book at the time of an outage will be purged prior to market re-opening, without exceptions for different order types. Plato highlighted the importance that some Exchanges may decide, depending on the order integrity, not to perform a global purge.

Following an outage, the new standards would require market re-opening protocols, wherein a standard 15-minute notification period to re-open will be provided to market participants and an additional 15-minute pre-open period will be applied for insertion, amendments and cancellations.

“At Euronext, we are committed to upholding the highest standards of market integrity and operational resilience,” said Nicolas Rivard, global head of cash equity and data services at Euronext.

“These proposed guidelines align with our ongoing efforts to enhance market stability and provide our clients with the assurance they need during volatile periods.”

Read more: Tech glitches should not be the cause of stock exchange outages in this day and age

The new standards will also require all trading venues in an outage to apply a standard cut-off time to declare the closing price of 17:00 UK / 18:00 CET.

In an instance where an outage prevents a closing auction taking place prior to the cut-off time, Plato stated that the determination of the official closing price should be applied in the following order by the trading venue: last traded price where the continuous phase has commenced; opening price where the continuous phase has not commenced; prior closing price where the market has not opened.

Rounding off the five proposed standards is enhanced trading venue communications. This would require trading venues to maintain resilient communication channels, including providing status updates every 15 – 30 minutes during an outage, even if there are no new updates.

Plato stated that while not all standards have been agreed by all exchanges, where standards have been agreed, venues will amend their market outage policies and/or playbooks in the coming weeks.

The standards seek to bolster the resilience, consistency and transparency of market operations during outages.

They were developed in close collaboration with the Financial Conduct Authority’s (FCA) working group on market outages, who are developing standards for UK trading venues, ensuring consistency across both UK and European trading venues for market participants.

“By working closely with Europe’s leading exchanges, we’re making a tangible step toward ensuring markets can function smoothly despite unexpected challenges,” said Mike Bellaro, chief executive of Plato Partnership. 

“This isn’t just about improving procedures – it’s about safeguarding the trust and integrity of the entire trading ecosystem.”

Read more: Market outages are one area where UK and EU could collaborate amid divergence, says Cboe

Earlier this year, a liquidity landscape report from Liquidnet highlighted market outages and resiliency as one of the ‘must watch’ areas for both regulators and market participants.

To combat these issues, the market must take an approach of individual responsibility in making the eco-system function optimally, the firm noted in its report.

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The pair have been in partnership since 2016. The deal brought the newly rebranded Turquoise Plato to market with the aim of developing efficiencies in the European equities block trading space.

The reason behind the termination is unconfirmed. Plato and Turquoise declined to comment beyond their provided statements.

“Plato Partnership and Turquoise have worked together to drive innovation and positive change within the equities marketplace,” said Mike Bellaro, chief executive of Plato Partnership in a statement on Thursday.

“Though our commercial partnership has come to an end, the collaboration has achieved positive change in block trading and market efficiency.”

Under the umbrella of the partnership, Turquoise Plato Block Discovery won The TRADE’s award for Outstanding Block Trading venue at Leaders in Trading in 2017.

In the same year it launched Turquoise Plato Lit Auctions.

Adam Wood, CEO of Turquoise Global, LSE said in a statement: “We thank Plato for a successful partnership that has helped bring efficiencies to the European equities market. Turquoise will continue to engage closely with the buy-side and sell-side to develop best practice guidance and deliver increased efficiencies in anonymous European equity block trading.”

Several years after its initial agreement, Turquoise Plato launched its Trade At Last functionality in 2020 which allows traders to submit firm and conditional orders for an additional ten minutes after the closing auction has completed its price formation process and published the official closing price at 4.35 pm.

“As a buy-side participant, I have seen first-hand the progress made through our partnership with Turquoise. Together, they have made great progress in block trading, enhancing liquidity and trading opportunities for the buy-side community,” said Simon Steward, buy-side chair of Plato Partnership, in a statement on Thursday.

“Plato will continue to champion initiatives that meet the evolving needs of buy-side participants, ensuring that our market remains dynamic and efficient. Our ongoing projects, such as addressing high market data costs and exploring innovative US trading mechanisms in Europe, will continue to drive our mission forward.”

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The addition of Optiver marks a significant milestone for the partnership as it becomes the first market-making company to join as a full member.

Plato Partnership stated that one of its core missions for 2023/24 is to broaden its horizons with the aim of hearing, considering and representing a wider array of market participants.

Adding Optiver will help represent the diverse interests of all market participants alongside fostering innovations to improve the overall market experience, according to Plato.

“As part of our mission to improve markets, we proactively seek to share our knowledge and expertise as a way of driving progress throughout our industry,” said Jan Boomaars, chief executive of Optiver.

“A leading forum for open discourse and debate on financial markets, the Plato Partnership is a natural venue for Optiver to continue this work.”

Optiver is set to appoint a representative to join Plato’s advisory committee, will actively engage in and contribute to the MI3 academic initiative, and become a valuable member of the Plato Turquoise Expert Group (TPEG).

“We are thrilled to welcome Optiver to Plato Partnership as our first market-making member. This collaboration aligns closely with our mission to foster a diverse and dynamic set of voices as we look to innovate the equity market,” said Mike Bellaro, chief executive of Plato Partnership.  

“Optiver’s inclusion not only expands our membership base but also injects a new kind of expertise and innovation that will undoubtedly benefit not only our advisory committee and initiatives, but all market participants.”

Earlier this year, Plato Partnership added Liquidnet as an inaugural strategic partner, which followed the addition of Kepler Cheuvreux, UBS Asset Management and Pictet Asset Management as founding members late last year.

Elsewhere, Capital Group’s Simon Steward was appointed buy-side chair of Plato Partnership, replacing Christoph Hock, head of multi-asset trading at Union Investments, in October.

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Asset manager Ninety One promoted from within for its new deputy global head of trading and head of trading for South Africa. Former head of trading for South Africa at Ninety One, Doug Blatch, has been selected to support global head of trading at Ninety One, Cathy Gibson, as deputy. He takes up the role after 26 years at the business. Chosen to replace him in his regional role is Yanela Songca who has been appointed to take up the trading reins in South Africa after serving as a senior trader at Ninety One for nearly nine years, originally joining the asset manager in 2015. He will report to Blatch. 

Jonathan Tse has been appointed managing director, EMEA head of electronic trading quant analytics, platform and product at UBS, as he moves over from Credit Suisse. In his new role, Tse is set to focus on growing algo platforms, as well as working in electronic trading for cash equities, global FX, and global exchange traded derivatives. Prior to this role, he spent almost 17 years as managing director, head of EMEA AES product and global execution services quant product EMEA at Credit Suisse.

Simon Steward was appointed buy-side chair of not-for-profit member organisation for the equity marketplace, Plato Partnership, replacing Christoph Hock, head of multi-asset trading at Union Investments. Steward, director and European head of equity trading at Capital Group, has been a member of the Plato board for three years and has more than 24 years of experience within capital markets which he is set to leverage in this new role. Hock’s departure is linked to his recent career change, in which he will step away from his role to pursue an opportunity in digital asset and tokenisation within the asset management firm, focused on: token economy, digital assets, and data science.

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Steward, director and European head of equity trading at Capital Group, has been a member of the Plato board for three years and has more than 24 years of experience within capital markets which he is set to leverage in this new role.

Speaking about his new role, Steward said: “I am honoured to join Plato Partnership as the buy-side chair and work alongside our dedicated members. I am committed to building upon the strong foundation laid by Christoph and the team in driving innovation for our industry.”

Hock’s departure is linked to his recent career change, revealed by The TRADE earlier this year. He is set to step away from his role to pursue an opportunity in digital asset and tokenisation within the asset management firm, focused on: token economy, digital assets, and data science.

Mike Bellaro, chief executive of Plato Partnership thanked Hock for his dedication during his tenure, stating: “Christoph has been an invaluable asset to Plato Partnership for the past five years. His advice, guidance, and vision have left an indelible mark on our organisation. 

“[…] As we welcome Simon Steward, we are excited about the fresh perspectives and wealth of experience he brings to the Plato project. With his extensive expertise in capital markets, Simon is well-equipped to guide our collaborative efforts in our ongoing mission to foster innovation and efficiency for market participants.”

In August, Plato Partnership added Liquidnet as an inaugural strategic partner, set to play a crucial role in shaping and informing Plato’s initiatives within capital markets, according to the organisation.

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Liquidnet brings knowledge and experience in capital markets to the Partnership and will play a crucial role in shaping and informing Plato’s initiatives within capital markets, the organisation said.

As a strategic partner, Liquidnet will participate in three of Plato’s core initiatives including Plato Strategic Initiatives Group, which aims to identify issues and areas to bolster equity market structure.

Liquidnet will also engage with Plato’s Market Innovator (MI3) programme, which aims to recognise key challenges facing the marketplace alongside sponsoring independent academic research to resolve these issues.

Elsewhere, Liquidnet will participate with the Turquoise Plat Expert Group, which aims to provide market model enhancements to refine equity block liquidity and provide greater efficiencies in anonymous equity block trading.

“At Liquidnet, we are big supporters of the work that Plato is doing to help the investment community navigate our evolving markets,” said Chris Jackson, global head of equity strategy and head of EMEA equities at Liquidnet.

“We have always focused on applying technology to make financial markets more efficient and we’re looking forward to working with Turquoise, the buy- and sell-side members of the Plato group to bring solutions to the industry’s most difficult challenges.”

The addition of Liquidnet follows Kepler Cheuvreux, UBS Asset Management and Pictet Asset Management being named as founding members of Plato Partnerhsip late last year.

Plato Partnership stated that the new founding members’ participation marks a milestone in the company’s mission to bring greater efficiency and innovation to all areas of the European equity marketplace.

“Plato is committed to innovation, and the admission of Liquidnet as a strategic partner is a major innovation for our Partnership,” said Mike Bellaro, chief executive of Plato Partnership.

“As the first electronic liquidity specialist (ELS) to join, Chris and the team at Liquidnet hold a truly unique perspective on the marketplace and significant untapped potential.”

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Not-for-profit business Plato Partnership and Brazilian regulated fintech SL Tools have jointly announced a plan to bring block trading opportunities to Brazil’s securities marketplace, The TRADE can reveal.

The plan is subject to official approval from regulators which last year approved block trading in Brazil, a move commended by both Plato and SL Tools.

Speaking to The TRADE, Andre Duvivier, chief executive of SL Tools, highlighted the significant opportunity the approval from the Brazilian Securities Commission presents, effectively opening a door for innovation in Brazil.

“In Brazil, institutions have been trading with the same rules which were implemented in 1991, so it’s been over 30 years that the market for institutional investors has not developed any new protocol […] I believe that the fact that we are changing the regulations here in Brazil will allow for efficiency gains to be unlocked.

“Putting development in perspective, in the Brazilian local market the funds industry AUM, went from $40 billion to $1.5 trillion and was still operating under the same rules so there’s a need for market reform.”

Plato’s experience deploying block trading in European markets is set to be leveraged in this new venture as the business looks to Brazil as a prime opportunity thanks to its significant growth over the last six years.

“If you look at the Brazilian market dynamics it’s the perfect place to bring a block trading venue,” Mike Bellaro, chief executive of Plato Partnership, told The TRADE, highlighting that the market dynamics are a critical factor.

“In terms of the current investor makeup that is actually transacting in Brazil around 27% of the marketplace is represented by local Brazilian institutions and 50% (latest figure) are represented by foreign investors – overall just under 80% of the marketplace from Brazil is made-up of institutional investors.

“[…] We think this has the potential to be a pretty powerful partnership and bring a much-needed, really creative, solution to the marketplace.”

The businesses are focused on building and deploying the new block trading facility which will be made public in the coming months following regulatory approval. The product is set to be up and running in Q1 2024, with all the licenses expected to be in place, The TRADE can reveal.

In Brazil, when trying to execute a large position in the marketplace, historically local regulations have triggered open auction processes – in many cases resulting in traders being shut out of their own auctions.

Andre Duvivier, chief executive of SL Tools, explained: “There is no sustainable way to trade around these market conditions yet, and some traders resort to trading in smaller pieces or using broker algos, which take a long time to fill and dislocate prices. A block trading facility will provide a viable way for institutions to trade around these market inefficiencies, with pricing at the mid-point and minimal market leakage or price impact.”

These recent developments in the Brazilian securities market have been likened to those of Europe around 15 years ago, wherein outdated trading systems had begun to have a negative effect on execution and performance.

The opportunity for institutional investors in Brazil to access new liquidity is significant, Duvivier told The TRADE, highlighting that the initiative is not aiming to export volume, but rather adapt the local market in order to import volume.

“Currently, Europe is ahead of us and we’ll be able to inherit part of their discoveries and changes that are being proposed. We may not adopt 100%, but the block trade regulation was based on the large-scale European model, so the Brazil regulators are open to learn. We’re just taking something that works in major markets and bringing them to Brazil [and] there’s a lot of synergies that we could extract from this product and apply in the market as it develops.”

Bellaro asserted that the partnership will allow for a general levelling-up of capital markets in the region and make the Brazilian marketplace more attractive for investors.

“Creating a large-in-scale venue in Brazil will enable end clients to benefit, both from an alpha capture and preservation perspective […] which would reduce the implementation cost involved in trading. That ultimately then goes back to the end investor. 

“From our perspective we are helping to bring strategic liquidity, reduce market impact, potentially reduce leakage and help improve the results for the end investors.”

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Plato Partnership stated that the new founding members’ participation marks a milestone in the company’s mission to bring greater efficiency and innovation to all areas of the European equity marketplace.

“The work done by Plato Partnership is a cornerstone of improving the marketplace. We are committed to sustainable outcomes with the aim of driving long-term performance and positive impact beyond returns,” said Lynn Challenger, global head of trading and order generation and managing director at UBS Asset Management.

“Our values align closely with that of Plato, and we are delighted to be a part of the Partnership as we pursue our shared goal of securing the future of financial markets.”

Challenger was recently added to Plato’s board of directors, bringing over 25 years’ experience in capital markets, multi-asset trading, technology, best execution and investment operations. His appointment followed that of Salvador Rodriguez, who was named sell-side chair earlier this year.

“Since our inception, Kepler Cheuvreux has been built on research and partnerships as its foundations,” said Chris McConville, global head of execution services and trading at Kepler.

“Plato Partnership’s commitment to a strong academic base while fostering open communication and dialogue between all parts of the marketplace are vital for the health of all financial services, and we are excited to start contributing to this mission.”

The three new founding members will participate in setting Plato’s agenda to provide solutions and efficiencies to today’s equity marketplace in an attempt to improve market structure for the benefit of all market participants.

“Pictet Asset Management have a robust and progressive approach to providing best execution on behalf of our clients,” said Edward Atkins, global head of equities trading at Pictet Asset Management.

“Plato Partnership provides an opportunity to collaborate with our peers and contribute to making the marketplace better for all participants.”

 Speaking on the addition of the new founding members, Plato’s chief executive, Mike Bellaro, added: “We are delighted to welcome these three leading financial institutions into the Plato fold. Their experience and expertise in the European equities marketplace will prove invaluable as we seek to broaden the scope and scale of the partnership.

“We face a tough time in all financial markets, and only through better communication between buy-side, sell-side and venues coupled with strong academic research can we find the best solutions to the challenges we face.”

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Baton Systems appointed Alistair Griffiths as its new director of EMEA sales. Griffiths joined from FIS Global, where he served as senior sales executive of post-trade solutions, responsible for sales in the UK, Channel Islands and the Netherlands. He brings considerable experience to Baton Systems, having also previously served at BNY Mellon and BlackRock. Most recently, he served as BNY Mellon’s vice president, relationship manager and prior to that, served as production manager at BlackRock. Based in London, Griffiths reports to Alex Knight, global head of sales, with a focus on new business acquisitions across all Baton solutions in the region.

Goldman Sachs appointed Adesh Choraria as an executive director in equity sales. Choraria joins the investment bank from Morgan Stanley, where he held an equity derivatives sales position for five years. Prior to that, he served at Deutsche Bank for three years in a similar role. Earlier in his career, Choraria spent nearly a year at Knight Assets & Co. in a global equities position, and before that, served in another equity derivatives role at Commerzbank AG.

Plato Partnership added UBS Asset Management’s Lynn Challenger to its board of directors. Challenger holds over 25 years’ experience in capital markets, multi-asset trading, technology, best execution and investment operations. He currently serves as managing director, global head of trading and order generation at UBS Asset Management, where he has spent the last six years. Prior to that, Challenger spent nearly a year at Bridgewater Associates as head of execution – trading. Challenger also previously served on the board of directors at San Francisco-based, non-profit organisation, March of Dimes.

Trading software and liquidity services provider Finalto named Andrew Biggs as group head of risk and trading. Biggs has been promoted to the role after serving as head of liquidity and systematic market making at Finalto since May 2018 – a position he maintained after the acquisition and rebrand of CFH Clearing to Finalto. Before joining CFH Clearing, Biggs served as head of liquidity and risk analysis at IS Prime, and prior to that, held the position of head of electronic trading solutions at the firm. Earlier in his career, Biggs served in an institutional sales role at Sucden Financial and before that as a sales and relations executive at ICM Capital before eventually assuming the role of UK sales and relations manager.

Melbourne-based superannuation fund, AustralianSuper, appointed Nina Marsh as a senior equity dealer. Marsh joins the firm from Liberum, where she spent the last 14 years, most recently as an equity sales trader. Prior to that, she spent eight years at Deutsche Bank, serving in the same role.

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Challenger holds over 25 years’ experience in capital markets, multi-asset trading, technology, best execution and investment operations.

He currently serves as managing director, global head of trading and order generation at UBS Asset Management, where he has spent the last six years.

Prior to that, Challenger spent nearly a year at Bridgewater Associates as head of execution – trading.

Challenger also previously served on the board of directors at San Francisco-based, non-profit organisation, March of Dimes.

Elsewhere in his career, Challenger served as managing director of global trading at Mellon Capital Management; director of FX options trading at Dresdner Kleinwort; head of options trading at WR Hambrecht and Co; and head of Asia, FX options at Credit Suisse.

Challenger announced his appointment in a social media post, saying: “I am very pleased to announce that I have joined the Board of Directors at Plato Partnership representing UBS Asset Management. Plato is a non-profit group focused on improving our equity marketplace.”

At time of publication, Plato Partnership had not yet responded to a request for comment.

Earlier this year, Plato Partnership appointed Instinet’s EMEA head of execution services to become its latest sell-side chair. Salvador Rodriguez assumed the role, replacing Chris McConville, global head of platform licensing at UBS, who previously held the position.

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