Bookbuilding platform Appital has launched a new initiative to unlock liquidity unavailable through traditional electronic trading venues.
Named Appital Insights, the initiative allows buy-side institutions to assess how viable the execution of larger ADV orders will be without the risk of information leakage or price erosion.
Traders and portfolio managers will also be able to access exposure to liquidity events in relevant equities meeting their minimum ADC or pricing thresholds.
“What asset managers care about – and we have discussed this with them in the process of developing Appital Insights – is to have a peer to peer discovery and liquidity sourcing ability that is integrated with their EMS providers and that does not alert the market,” Mark Badrya, chief executive of Appital, told The TRADE.
“They want full control on every stage of the order lifecycle. They want real time feedback on the orders on their pad and the ability to react and source liquidity in any relevant stock. This is what we have created with Appital Insights.”
The initiative builds upon existing bookbuilding capabilities available through Appital Turquoise Bookbuilder, which has integrated a highly manual and opaque process into a more automated, electronic platform – as well as the ability to execute large volumes on Turquoise MTF.
Appital Insights offers real-time, origination alerts to tap cross-border deal flow opportunities for buy-side users, ahead of any price formation or deal launches.
The initiative holds data which produces automated feedback on live positions as well as the probability of driving liquidity in relevant names – offering traders and PMs the ability to find deal contras before they proceed to launch a bookbuild.
Appital Insights connects directly to a trader’s EMS, allowing them to receive automated feedback on how to source liquidity for the orders on their desk.
“We have all witnessed venue fragmentation and a decline in block liquidity, with shrinking order sizes and exposure to predatory trading behaviour,” said Matt Jefford, head of liquidity solutions at Appital.
“However, true block liquidity still resides with the buy-side. This is the unique liquidity we are unlocking with Appital Insights.
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