Appital has
introduced a new pre-trade price discovery functionality aimed at stimulating
natural liquidity among its buy-side clients. The provider of liquidity
sourcing technology for asset managers will allow trading desks to interact
with investment teams.
Appital Launches Pre-Trade
Price Discovery Tool for Asset Managers
The new
feature, called Price Discovery in Appital Insights, allows buy-side traders to
gauge potential pricing and volume on larger average daily volume (ADV) orders
before committing to a bookbuild. This industry-first tool enables traders to
invite select feedback on live orders while maintaining anonymity and
minimizing information leakage risks.
“Clients can
pick their counterparts, expose a potential deal to them, and get feedback on
volume and pricing, before deciding to go ahead with a bookbuild,” commented Brian
Guckian, Chief Business Development Officer at Appital
This is a
new workflow that gives clients full control over the bookbuilding process and
the ability to proactively stimulate market liquidity. The tool introduces a
flexible approach to order management during the initial exploration phase.
Traders can
now assess market interest without locking in their positions, allowing them to
convert inquiries into firm orders if they choose to proceed with a bookbuild.
This method aims to streamline the process, potentially shortening the time
required to complete a deal while also improving the chances of a successful
transaction.
“We’re
digitizing another step in the high-touch trading mechanism while minimizing
risk of information leakage and price erosion,” Mark Badyra, CEO of Appital,
commented. “This aligns with our strategy to deliver unique workflows to
trading and investment teams.”
$12B of Liquidity and New Partnerships
Appital has
reported visible growth in the first half of 2024, with $12 billion of buy-side
liquidity now on its platform. Average orders are 2.7 days ADV, with
opportunities ranging from $1 million to $260 million. The company has signed
up 43 asset managers representing over $20 trillion in assets under management,
with an additional 60 firms in the onboarding process.
The company recently completed
the integration of its Insights tool with FactSet’s Portware Execution
Management System (EMS). This integration enables asset managers using Portware
to access Appital Insights liquidity directly from their existing EMS interface,
streamlining their workflow.
Building on this integration,
Appital has introduced a new feature called “Appital Trending
Equities.” This functionality, incorporated into Appital Insights, allows
buy-side deal originators to actively generate unique liquidity opportunities
in the market before initiating a deal.
In addition to these
technological advancements, Appital has bolstered its team with the appointment
of John Coules to its business development division. Coules brings extensive
experience to the role, having worked as a pan-European equities sales trader
at HSBC for 17 years and at Lehman Brothers for 13 years prior to that.
This article was written by Damian Chmiel at www.financemagnates.com.
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