LSE set to seal Turquoise deal

The London Stock Exchange and shareholders in trading platform Turquoise are expected to reach a deal within two weeks which will result in a new joint venture, the Financial Times reported on Wednesday.

The LSE and Turquoise both declined to comment on the report, which cited unnamed people familiar with the matter.

The LSE had said earlier this month it had entered into exclusive talks with Turquoise "which may lead to a transaction."

The Financial Times said on its website on Wednesday no cash would change hands in the deal.

Instead, Turquoise would be merged with Baikal, the LSE's "dark pool" trading venture, while the LSE would retain a 51 percent controlling stake, the newspaper said.

Turquoise was launched last year by a group of nine investment banks frustrated at the LSE's refusal to cut fees.

In August, Turquoise told Reuters it would be happy to cede control and that it had hired UBS to seek potential buyers.