The London Stock Exchange Group, which owns Italian market Borsa Italiana, and Turquoise, the trading system aiming to challenge Europe's exchanges, have clashed over Turquoise’s plan to trade Italian equities.

Turquoise, which is set to go live in September, yesterday told clients in a statement that LSE-owned Italian settlement depository Monte Titoli has shelved plans to link with Turquoise’s clearer EuroCCP, a link that must happen if Turquoise can trade Italian equities when it goes live.