As London Stock Exchange chief executive Xavier Rolet presses ahead with plans to build a European clearing service, he is working on a parallel scheme to expand the LSE’s European trading capabilities. Last week, the exchange said it had entered exclusive talks to buy Turquoise, the London-based alternative venue backed by nine banks, in a move revealed by Financial News.

The talks may mark the start of long-awaited consolidation between Europe's exchanges and a new type of stock market that has snatched around a fifth of their business, according to analysts.