Turquoise, the European multilateral trading facility, has partnered with not-for-profit company Plato Partnership, supported by many of the biggest investment banks and asset maangers, to develop a way for European smaller and mid-sized companies to better access liquidity through capital markets.
Turquoise Platfor is intended to facilitate a so-called event on demand mechanism, which will enable buy-side firms, via Turquoise members, to initiate such events to make liquidity available to SMEs for a minimum time period. This is intended to function as a mechanism that will enable more trading in SME businesses as they grow. For investors it is intended to improve training in less liquid securities of SMEs.
Giving SMEs longer time to access financing is seen as an important element in encouraging growth in the SME sector, which is providing some 90 million jobs across Europe, according to Mike Bellaro, Plato co-chair and global head of Equity Trading at Deutsche Asset Management.
“To be successful, SMEs need to be given the time and space to develop, and we are now facilitating that with the patient, longer-term financing that only capital markets can provide. Following the already significant progress in electronic block trading with Turquoise as a partner, we are truly excited about what this new functionality can do for SMEs and look forward to developing the proposition in the coming months,” he said.