Turquoise, the rival trading platform to the London Stock Exchange, is confident of beating earlier forecasts that it would steal a 5 per cent market share by Christmas, its chief executive told The Times last night.

Today is the start of the first full week of operation for the new venture, owned by nine investment banks. It is one of a number of new platforms that have emerged to challenge the LSE’s supremacy in the London equities market.

The service has been building up during August but had its first day at full capacity, trading in 1,266 stocks in 13 European countries, on Friday.

Eli Lederman, the chief executive, said that the venture had achieved a market share of more the 4 per cent in 11 stocks and of more than 2 per cent in 20. “These are small numbers, but . . . we haven’t really started yet.”

Mr Lederman had said previously that he would be happy with a 5 per cent market share by Christmas. Asked if he would stand by this forecast, he replied: “I’m certain we will beat it . . . We’re all very pleased with how it’s going - without a hitch. We’ve been more focused on stability, reliability and performance, rather than things which will come in time, like market share.”

The LSE, which today introduces lower tariffs in a bid to retain customers, was predictably dismissive of its new rival. “New entrants - and this is particularly true of Turquoise - have their work cut out in terms of proving to the market that they share the same efficiencies goals, that they exhibit the same neutrality and transparency and that they put the same store in clean markets as established exchanges,” a spokesman said.

Another rival, Chi-X, has claimed a 20 per cent market share in some UK stocks. Two others, Nasdaq OMX and BATS, are expected to set up shop in London this autumn, the former launching on September 26.

Herbie Skeete, managing director of Mondo Visione, a consultancy that advises on world exchanges, said: “Turquoise can be quietly pleased with its first of day of trading an extensive range of stocks across European markets. Getting 3 to 4 per cent of trading in a few stocks is fairly impressive for a trading venture some two weeks after its first trade.”

He added: “Is the old order ready to concede and hand over to the young guns? Not quite. On Friday Turquoise did some 40,000 in Royal Dutch. The LSE routinely does 4 million.

“Will the market share of European exchanges be halved one year from now? I for one would not be prepared to bet the house on this.

“What is beyond doubt, however, is that the competition engendered by the competitive forces at play will drive down costs, increase innovation and lead to a stronger, more vibrant marketplace.”

Explore Markets

• United States

• Europe

• Japan

• China

• Russia

• The Gulf

• India

• Africa

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive