SideCaps is a block trading platform that aggregates liquidity for small and micro-cap stocks, executing trades outside the order book on Xetra and Börse Frankfurt. By providing pre-trade transparency and mid-point pricing, it enhances the efficiency of large-volume investments while minimizing market impact and transaction costs.
Funding
$2.1M raised to dateRaised to date based on public sources. This may differ from the amount the company actually raised and is based only on what is publicly available on the internet.
Founders
Product
Problem
Small and micro-cap stocks often suffer from low liquidity, making it difficult for investors to execute large trades without significantly impacting the market price. The lack of transparency in pre-trade information and the presence of bid-ask spreads further increase transaction costs for investors in this segment.
Solution
SideCaps is a block trading platform designed to improve the efficiency of large-volume investments in small and micro-cap stocks. It aggregates liquidity from various sources, including boutique investment firms and traditional buy-side and sell-side firms, and executes trades outside the order book on exchanges like Xetra and Börse Frankfurt. The platform provides pre-trade transparency, allowing users to assess the impact costs against trading opportunities, and uses midpoint pricing to eliminate bid-ask spreads. By offering CCP settlement via Eurex, SideCaps provides optimal risk management and settlement discipline while netting positions to reduce CCP margin requirements.
Target Audience
The primary target audience includes investment firms, semi-professional market participants, and traditional buy-side and sell-side firms looking to invest in German and Austrian small and micro-cap stocks.
Features
- Aggregates liquidity for small and micro-cap stocks from diverse market participants
- Executes block trades outside the order book on Xetra and Börse Frankfurt
- Offers customizable pre-trade transparency, from "dark" to "lit" order display
- Provides midpoint matching to eliminate bid-ask spreads
- Enables CCP settlement via Eurex for risk management and settlement discipline
- Includes SideCaps Insights, a content platform for information on German and Austrian small-cap investments, including fundamental data, IR documents, and liquidity signals
- Offers personalized alerts for generating block liquidity in illiquid stocks