Price discovery for large illiquid equity trades is a longstanding challenge, especially for trades that equate to many times the average daily volume (ADV) traded. As the world’s first algorithmic bookbuilding system, Appital Turquoise BookBuilder is an innovation ideally suited to solving the problem.
Appital Turquoise BookBuilder deploys an automated workflow to improve price formation for stocks across more than 20 markets. Placing institutional investors at the centre of the bookbuilding process, it allows them to interact with like-minded institutions to improve what has traditionally been a manual and opaque process for buy-side participants.
This historic step in the electronification of equity markets gives the buyside an active role in price discovery and enhances market efficiency. Backed by Appital’s innovative technology, it lets buy-side firms execute larger volumes with minimal market impact.
Benefits of Appital Turquoise BookBuilder
- Price formation capabilities for illiquid positions
Exchanges and venues lack price formation capabilities for illiquid positions. The algorithmic bookbuilding process improves price formation.
- Technology for trading multiple days’ ADV
Technology innovation is set to make this overlooked corner of the equity market more efficient, awarding the buyside greater control.
- Access to relevant liquidity with; no conflicts of interest
Automated bookbuilding technology as part of Appital Turquoise BookBuilder puts relevant buyers and sellers in touch, overcoming the danger of price leakage associated with manual trades.
- Better liquidity in listed equities
Existing equity market trading services have limits in terms of trade sizes. As the next evolution in electronification, Appital Turquoise BookBuilder is intended to complement them by facilitating larger trade sizes.
Seamless execution, elegant workflow
Buyside traders are alerted to relevant liquidity and interact with like-minded institutions in the liquidity and price formation process.
Appital Turquoise BookBuilder captures the demand and supply curve, achieving the right price for the respective trade size. The bookbuilding system focuses on minimising price erosion while maximising execution quality.
Following this, Turquoise trading members supporting Appital Turquoise BookBuilder are made aware of the liquidity opportunity and submit trades for affirmation to the bespoke block trade facility designed by Turquoise.
Execution proceeds via STP to settlement via Turquoise for on-time delivery into the right settlement destination. Post-trade price discovery is broadcast in full compliance with transparency requirements.
Trusted trading partner
Appital and the Turquoise pan-European MTF, majority-owned by the London Stock Exchange Group, have joined their respective strengths to deliver the next step in the electronification of equity markets.
Appital’s algorithmic platform puts buyside firms – both asset suppliers and contributors of capital – in control as they pursue price discovery in large trade sizes. Turquoise provides a single point of access and execution, with seamless STP to more than 20 settlement destinations.
Contact us
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