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Turquoise Plato addresses liquidity issues facing SMEs

First Published 21st April 2017

Plato Partnership and Turquoise announce the development of a mechanism that allows users to call a liquidity event for less liquid securities, including small and medium-sized enterprises.

Robert Barnes,Turquoise

Robert Barnes,Turquoise

Turquoise Plato trading innovations for small and medium cap SME securities aims to contribute to a more attractive capital raising environment for growth companies by increasing choice of execution mechanisms that offer potential liquidity in those stocks.

The proposed 'Event on Demand' (EOD) mechanism will operate within the existing Turquoise Plato Order book, thereby reducing implementation costs for users. It is anticipated that buy-side firms, via Turquoise members, will be able to initiate an EOD to advertise liquidity for a minimum time-period for SMEs, providing a facility for increased trading in these businesses as they grow.

Dr Robert Barnes, CEO Turquoise, said: "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. Turquoise Plato offers additional execution mechanisms for the trading of SME growth companies, continuing to innovate by converting customer ideas into action."