Appital, a peer-to-peer price discovery and liquidity sourcing technology for asset managers, announced the launch of a new functionality designed to stimulate natural liquidity among Appital’s buyside clients and discover pricing dynamics on larger ADV orders on their pad.
Price Discovery in Appital Insights is said to be “an industry-first functionality that enables buyside traders to invite select feedback on live orders and gain insights on potential pricing and volume before committing an order to a bookbuild or before launching a bookbuild themselves.”
Buyside traders retain full control “over how and when they interact with their counterparts and platform liquidity.”
PMs can respond to price discovery processes “without generating an order in their EMS, allowing for opportunistic liquidity discovery and alpha generation.”
The Appital workflow now “enables new, uncommitted order types during price discovery, which can transition to committed order types once traders decide to launch a bookbuild.”
This significantly reduces bookbuild duration “while increasing the likelihood of its success.”
At the same time, buy-side firms retain anonymity and “minimize the risk of leakage or price erosion.”
Price Discovery in Appital Insights evolves “the existing workflow and goes one step further: Appital clients can unlock latent liquidity by inviting specific firms to provide feedback on potential orders. If sufficient demand is captured in price discovery, the information flows anonymously back to the originator to launch a bookbuild, and the liquidity is realized.”
Appital notes that its growth has been consistent ” with month-on-month increases ” in the first half of 2024.
Appital reports that it has reached $12bn of buy-side liquidity on its platform, with average orders of 2.7 days ADV and opportunities between $1 million and $260 million. 43 asset managers with >$20trn AUM are now signed up, with 60+ more in the onboarding stage, managing an additional $30trn AUM.
