Turquoise Plato is to develop a mechanism that allows users to call liquidity events for less liquid securities.
The tool will be available for small and medium-sized enterprises (SMEs) securities, which Turquoise Plato said are a vital driver of growth in the economy.
Turquoise Plato added increasing the choice of execution mechanisms that offer potential liquidity in those stocks will contribute to a more attractive capital raising environment for growth companies.
Mike Bellaro, Plato co-chair and global head of equity trading at Deutsche Asset Management, explained SMEs are “the lifeblood of the European economy, providing 90 million jobs, yet they are held back from reaching their full potential by insufficient opportunities to access funding.”
The liquidity tool will be available through the Turquoise Plato order book and will include an ‘event on demand’ mechanism.
Buy-side firms, via Turquoise members, will initiate the event on demand tool to advertise liquidity for a minimum time period.
Nej D’jelal, Plato co-chair and head of electronic equities product for EMEA at Barclays, said the ‘event on demand’ aims to “innovatively improve liquidity opportunities in SME securities by enhancing the user experience of automated trading in less liquid securities.”
Robert Barnes, CEO at Turquoise, added: “As a market operator and trading venue, we understand from investors that the ability to trade after a company lists is a key ingredient to successful capital raising.”