TS Imagine’s latest EMS integrates with Appital’s bookbuilding platform ahead of launch
TS Imagine integrated its Execution Management System (EMS) with Appital’s bookbuilding platform before launch.
The pair said integrating their offerings would increase liquidity for mutual users and reduce the risk of trading illiquid stock positions.
Apppital is preparing to launch its bookbuilding platform on the market later this year. It aims to bring greater transparency to equity markets and give buy-side institutions access to a flow of transactions they may not have previously been exposed to.
“The end goal is to give control to the buy-side and give them real-time access to the entire lifecycle of the bookbuilding process. The integration with TS Imagine expands Apppital’s reach within the asset management community in the UK and Europe,” Apppital Managing Director Mark Badyra told The TRADE.
“They will benefit from access to real-time visibility, full transparency and maximum control over the process of building books and distributing transactions. At the same time, merchants and PMs [portfolio managers] will also be able to proactively expose themselves to deal flow opportunities relevant to them. They set their own preferences to ensure they are only exposed and alerted to relevant liquidity.
The development follows a similar integration with FactSet’s Portware Enterprise EMS announced by Appit earlier this month aimed at allowing buyers to place larger orders or participate in additional liquidity opportunities.
Badyra said integrating TS Imagine – like that of FactSet – would help reduce the risks of trading illiquid stock positions.
“These large trades – which involve less liquid stocks and multiple days of ADV – have always been exposed to the risk of information leakage and therefore price erosion. Bringing this flow into an EMS environment is a big step forward. before in terms of reducing trading risk in multi-day ADV,” Badrya added.
“One of the market trends we seek to address and counter is the overall reduction in trade sizes that we have seen in recent years. We are unlocking liquidity greater than the size of blocks and LIS transactions [multiple days ADV] providing buy-side companies with liquidity and price formation opportunities and the ability to interact with like-minded institutions in the liquidity formation process. Deal originators have real-time access to the entire lifecycle of the bookmaking process, allowing them to make distribution adjustments throughout. They can execute large volumes with minimal market impact or risk of price erosion.”