Appital Bookbuilding platform for Pan-European liquidity taps Instinet as executing broker

Rick Steves

Appital has begun the formal onboarding process for many of the largest global asset managers over the coming months, with more than 30 asset managers lining up to join Appital once it launches. 

Instinet will be the first executing broker to work with the Appital Bookbuilding platform, which enables institutional investors to proactively source pan-European liquidity, including in highly illiquid, small and mid cap stocks.

Scheduled for launch in Europe in 2022, the platform drives a bookbuilding process providing deal originators with opportunities to execute large volumes, often in excess of 5 days of ADV, with minimal market impact or risk of price erosion.

While unlocking latent liquidity, deal participants are able to set their own preferences to ensure they are only exposed and alerted to relevant liquidity.

An automated way to source scarce liquidity

Mark Badyra, Chief Executive Officer of Appital, said: “What we set out to do with Appital is provide unique, electronic price formation capabilities of illiquid equity positions to enable execution with minimal market impact or risk of price erosion. Through our collaboration with Instinet we have created a new execution workflow that has not existed before; one that best facilitates the needs of our joint asset management client base.

“We are thrilled to collaborate with Instinet to realise our ambition to bring innovation and automation to equity bookbuilding. Instinet’s agency-only execution model aligns with our business model; our deal distribution methodology is highly efficient and unconflicted, delivering accessibility and a fair outcome to all market participants”.

Richard Parsons, Chief Executive Officer at Instinet Europe, commented: “Embracing new technologies and finding new and innovative ways for our buyside clients to access hard to find liquidity are core elements of our mission. Appital’s bookbuilding platform is designed to give our joint client base an automated, more efficient way to proactively source scarce liquidity, often over multiple days, and drive a quality block bookbuilding process. We are delighted to collaborate with Appital in preparation for their European launch, and to deliver even greater access to liquidity to our clients.”

Appital onboarding asset managers with over $30 AUM collectively

Appital has begun the formal onboarding process for many of the largest global asset managers over the coming months, with more than 30 asset managers lining up to join Appital once it launches.

The upcoming asset manager clients collectively manage over $30 trillion and are taking the necessary legal and technical steps in order to join the platform.

Instinet is the proud first executing broker on the Appital Bookbuilding platform following extensive collaboration between the two firms in order to create a channel for new execution flow uniquely suited to buy-side firms seeking greater exposure to European deal flow and block trading opportunities.

Asset managers that decide to join the platform to pursue a similar liquidity and price formation process are welcomed to have their flow executed via Instinet.

Appital has also partnered with Turquoise so that buyside firms can gain a single point of access with seamless straight-through-processing (STP) to over 20 settlement venues.

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