THETRADETECH DAILY
SPONSORED ARTICLE on this initiative . Appital ’ s chairman , Greg Bennett , is a long-standing member of the capital markets community , who we have worked with at the London Stock Exchange for many years . When Mark articulated his vision , it highlighted an innovation that the markets really needed . And I appreciated it even more when I heard Greg share his own experience as a senior executive on the buyside , having to go through the manual process of bookbuilding .
The reason the platform is so attractive is it has the potential to reverse the trend of shrinking trade size that we ’ ve seen since the electronification of stock markets . Average trade sizes are now less than 10,000 euros per trade ; in fact , they are probably less than 5,000 euros per trade now , while pension funds might want to do ¤ 10 million or more .
We ' re really proud of our track record of customer engagement and innovating in partnership to enable electronic block trading at the midpoint on order book . Appital is bringing a new level of innovation , continuing that journey for two types of scenarios that I think are very significant .
One scenario is for trade sizes that are very large relative to the ADV traded , whether that ' s a smaller notional in an illiquid stock or a big blue chip where you ' re doing many days of ADV . The other scenario is the opportunity for an instrument that may not have any pricing data , where you need a bookbuilding mechanism to find the right price for the size of trade you want to do . There are mid-caps and small-caps that sometimes may not have intraday trade data for days . Once live , Appital Turquoise Bookbuilder will offer a fully automated high-trust solution to get the right price through an automated bookbuilding service with straight through processing all the way from buy-side to clearing and settlement . There is nothing like it in the world today . As a partnership , we ' ve got all the ingredients for something very special .
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