Zak Mir talks to Andrew Stancliffe, Head of Execution Services at Winterflood Securities, after the recent Marex takeover. They discuss the success of the Winterflood Retail Access Platform, which has now raised over £600m in fundraising and, in turn, has been a significant source of liquidity to the London stock market. Winterflood is one of those names that anyone active in UK equities will recognise from Level 2 screens, placings, and day-to-day market-making. But beyond the familiar name sits a bigger story about liquidity in small caps, how retail investors are gaining better access to fundraises, and why the UK market may be in better shape than its critics like to admit. Andrew Stancliffe, Head of Execution Services at Winterflood Securities, sits right in the middle of that story. His role covers the sales trading side of the business, working with clients ranging from institutions to retail execution brokers. Following Winterflood’s acquisition by Marex, there is also a clear focus on combining Winterflood’s market presence with Marex Financial's broader capabilities. The result is a useful window into where UK market structure is working well, where the frustrations really lie, and why technology is changing access without removing the need for human judgement. What Winterflood actually does in the market At a practical level, Winterflood sits at the heart of execution and liquidity provision in UK equities. It is a major market maker, particularly visible in smaller quoted companies, and plays an important role in helping buyers and sellers meet in names that might otherwise feel difficult to trade. Stancliffe’s remit is focused on execution services and sales trading, speaking to a broad spread of clients and helping ensure they get the best possible access to liquidity and trading opportunities. That matters because in the UK small cap market, liquidity is always the first complaint. If a share is not moving, or if trading looks thin, the market itself is usually blamed. Stancliffe’s view is more nuanced. Is there really a liquidity problem in UK small caps? Liquidity in smaller companies is one of those subjects that never seems to go away. It is a bit like the weather: people are rarely satisfied. Stancliffe’s argument is that the UK actually has one of the most vibrant and competitive small company trading environments around, especially because of the market-making infrastructure already in place. On many stocks there can be a large number of competing market makers, sometimes as many as 16, all quoting prices on screen. That creates depth which is easy to overlook. Where the challenge has become more noticeable is not necessarily in the mechanics of trading, but in the reduced participation from institutions in the smaller end of the market. Fewer institutional houses active in UK small caps naturally changes the shape of liquidity. Even so, his broader point is straightforward: if a company has a compelling story and the market cares, liquidity can appear very quickly and in significant size. That is an important distinction. Illiquidity is not always a market structure problem. Sometimes it is a company problem. Good companies tend to find liquidity One of the more refreshing parts of the discussion was the blunt acknowledgement that some shares are inactive simply because they are not interesting enough. Markets rotate. Sectors and themes move in and out of favour. Individual names can go from dormant to heavily traded once the story improves. Stancliffe used IQE as a good example. It had traded below 10p and later moved as high as 60p to 70p, accompanied by a significant jump in volume. Before that rally, liquidity may well have looked challenged. Once the market’s attention returned, so did trading activity. The lesson is simple: Liquidity can be patchy at any given moment Interesting companies tend to attract liquidity over time Strong performance often solves the liquidity complaint very quickly That is also why recent winners in the London market, including selected small caps and Aquis-listed names, have managed to generate meaningful trading interest when the underlying story has been right. Where humans still matter in an AI-driven market Electronic trading, automation and AI are now standard talking points across every part of financial markets. Execution services are no exception. Stancliffe is clearly in the camp that sees AI as a positive tool rather than a threat. His description of it as a “modern day calculator” is a good one. It captures the practical reality that AI can improve workflows, increase efficiency and help traders focus on higher-value activity, rather than replacing the core human role altogether. In execution businesses, that means automation can be used to handle smaller trades or more routine processes, while traders spend more time on larger opportunities and more complex client needs. But the key point is that relationships still matter. Markets are built on trust, communication and judgement. Those things do not disappear because technology gets better. AI may improve efficiency and service quality, but relationship building still requires human interaction, not an AI-generated email. That is probably the right balance. Technology helps scale the service. Human input still drives the important conversations. The UK government, the City and the investment culture gap with the US There has been a lot of discussion in recent years about whether governments of all colours truly understand the City, and whether policy is helping or hurting UK capital markets. Stancliffe’s take is relatively measured. He believes the current government, like its predecessors, wants to promote growth and investment. The frustration comes when policy changes create unintended consequences that weigh on the very part of the market they are trying to support. Tax changes and the treatment of AIM companies were cited as examples of where the outcome can end up being a net negative, even if the wider objective is understandable. He also highlighted a broader cultural issue. In the US, the media and the wider market ecosystem tend to celebrate investment and champion corporate success. In the UK, there is often more focus on what is going wrong. That matters because sentiment shapes participation. If the national tone around equities is too negative, it becomes harder to attract new investors, support IPOs and build confidence around domestic capital formation. Reasons for optimism on UK equities Despite the noise, Stancliffe remains optimistic about the UK market. His case rests on a few clear pillars: The UK has outstanding companies already listed There are strong private businesses that may yet come to market for growth capital The UK still has world-class universities and talent The market has delivered better performance than many people give it credit for One striking example was Rolls-Royce. While much of the media attention remained glued to US technology winners, one of the best-performing major stocks last year was listed in London, not New York. That is a useful reminder that opportunities in UK-listed businesses do exist, even if they are often under-marketed compared with the US giants. The Winterflood Retail Access Platform and why it matters If there is one area where Winterflood has made a particularly visible contribution in recent years, it is through RAP, the Winterflood Retail Access Platform. Stancliffe is understandably proud of what has been built. In just over three years, RAP has helped raise around £600 million across roughly 130 transactions, spanning listed companies and fixed income deals. That is more than just a nice growth statistic. It represents a meaningful shift in how retail investors can participate in capital raises that were historically difficult to access. Why retail investors used to miss out Placings in UK-listed companies are often fast, especially accelerated fundraises that can be completed within hours or over a day or two. Historically, that speed worked in favour of institutions and left retail investors excluded, even where they were already shareholders. The issue was not necessarily intent. It was logistics. Retail channels were simply too slow and too fragmented to participate efficiently in many of these situations. How RAP improves access RAP is designed to digitise the process and help retail shareholders take part in what Stancliffe referred to as soft pre-emption. In simple terms, it gives existing retail investors a better opportunity to maintain exposure when a listed company raises money. The platform works by sending transaction information out efficiently through major retail investment platforms, including names such as: Hargreaves Lansdown AJ Bell Interactive Investor That creates a much more seamless route for eligible investors to be represented in placings that might otherwise pass them by. It is also a genuine step forward for market fairness. Existing shareholders should not be left out purely because the process moves quickly. How to register interest in RAP Winterflood now offers a notification service for new transactions. Those interested can register via winterflood.com under the Retail Access Platform section using an email address for alerts. That is a clear upgrade from the old model where access often depended on whether a broker happened to make contact in time. Are there minimum investment sizes? In some cases, yes. There can be minimum participation levels, although Stancliffe indicated these are often relatively modest, around £250. The exact minimum depends on the individual transaction rather than being fixed across the board. So while not every deal will look identical, the general principle is that access thresholds are usually small enough to be realistic for many retail participants. Why volatility can be good for trading firms Markets had been deal
