Equity capital markets technology solution Appital and pan-European MTF, majority owned by London Stock Exchange Group, Turquoise have announced launching Appital Turquoise BookBuilder.
The buy-side to buy-side bookbuilding platform aims to give institutional investors the opportunity to source liquidity proactively. The platform is designed to provide transparency and control over bookbuilding and deal distribution process with an automated and electronic platform.
Appital highlighted that the new bookbuilding platform benefits buyside firms with liquidity discovery and price formation opportunities for illiquid equity positions, as well as the ability to execute large volumes on the regulated Turquoise MTF.
Mark Badyra, CEO of Appital, commented:
The launch of Appital Turquoise BookBuilder™ represents a step change for the asset management industry in the way they unlock and proactively drive liquidity in the market, ushering in a new era of automation in equity markets.
Leading up to the launch, Appital boosted its technological infrastructure with the integration of EMS providers FlexTrade, FactSet Portware and TS Imagine, and executing brokers Bernstein and Instinet. The Turquoise integration will enable buyside firms to benefit from a single point of access and execution, with straight-through-processing (STP) to over 20 settlement destinations.
Dr Robert Barnes, Group Head of Securities Trading & CEO Turquoise Global Holdings at London Stock Exchange Group, said:
Where bookbuilding is the appropriate mechanism to find the right price for large block trades, Appital Turquoise BookBuilder™ innovates with the world’s first automation of buyside bookbuilding seamlessly integrating STP trading to settlement.
According to the announcement, the first trade on the Appital Turquoise BookBuilder platform was completed by Norges Bank Investment Management, validating the new buyside workflow, from driving demand, to bookbuilding, allocation, deal distribution and execution.
Emil Framnes, Global Head of Trading and Transition at Norges Bank Investment Management added:
Unlocking latent liquidity and executing multiple days’ ADV is essential to achieving our investment objectives. We welcome Appital’s innovative peer to peer access of hard-to-find liquidity and executing large volumes using Appital Turquoise BookBuilder™ without market impact or the risk of price erosion.