Appital has launched Price Discovery Insights, a pre-trade price discovery function, allowing clients to stimulate liquidity at market levels, or outside the spread, and investigate potential pricing and volume before committing to a bookbuild.
The peer-to-peer price discovery and liquidity sourcing provider has launched the service in response to client demand, it said. Using the new function, clients are able to seek feedback from specific firms on potential orders, unlocking latent liquidity. If sufficient demand is captured in price discovery, information anonymously flows back to the originator, launching a bookbuild and realising the liquidity.
Mark Badyra, CEO, commented: “I believe that illiquidity issues can be solved globally by bringing technological innovation into the equity market and providing distinctive functionality to the buyside. With Price Discovery in Appital Insights, firms are able to generate orders that would otherwise not exist, resulting in increased deal flows and liquidity events.”
Buy-side traders retain full control over how they interact with counterparties and platform liquidity, Appital assured, and price discovery processes can be reacted to without an order being generated in the EMS.
Uncommitted order types made during price discovery can be confirmed once a bookbuild is decided on, which improves the chances of success while reducing the time it takes to bookbuild, the firm added. Through the process, continued anonymity for the buy side protects against leakage and price erosion.
Brian Guckian, chief business development officer at Appital, said: “Our clients are very excited about this new price discovery functionality. This is a new and unique workflow that gives clients full control over the bookbuilding process and the ability to proactively stimulate market liquidity.”
Badyra concluded: “With Price Discovery in Appital Insights, we are digitising yet another step in the high-touch trading mechanism. This aligns with our strategy to deliver unique workflows to trading and investment teams.”
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