The International Stock Exchange has launched a new, innovative service for private companies.
The International Stock Exchange (TISE) Private Markets provides unlisted companies with access to an integrated set of tailored electronic trading, settlement and registry solutions.
Cees Vermaas (pictured), CEO of TISE, said: “I am delighted to launch this highly innovative service for private companies. TISE Private Markets provides companies with a dedicated marketplace through which they can access a seamless service of electronic solutions, including trading, settlement, and registry management. We have conducted significant market research to develop this unique offering which we believe will be a particularly attractive alternative for privately owned SMEs considering means to improve the liquidity of their shares and also attract potential new investors.”
Private markets comprise investments in assets not traded on a public exchange or stock market. According to data from McKinsey, total private markets assets under management reached $11.7 trillion as of 30 June 2022, growing at an annual rate of nearly 20% since 2017.
TISE continues to operate its public market for bonds and equities as well but has expanded its product and service suite with the addition of the new private markets offering. The key characteristics of TISE Private Markets are:
- Company controlled marketplace – Companies have full control of their dedicated market, from approving and onboarding shareholders to scheduling auction events and managing registers;
- Bespoke auction model – The auction model, which leverages proven, state-of-the-art trading technology, concentrates liquidity, enhances price discovery and reduces price volatility;
- Seamless electronic settlement – Pre-funded orders mitigate counterparty risk and facilitate seamless electronic settlement of cash and shares which don’t have to be held in a depository (e.g. CREST);
- A solution for pre-emption rights – Existing shareholders of the company have first right of execution in an auction, with approved new shareholders only able to participate in any new surplus;
- All-inclusive, annual subscription fee – There is a single annual subscription fee for the service and there are no intermediary charges, transaction fees or other commissions;
- Safe and secure – A cloud-based service from an established market operator within a respected International Finance Centre.
Mr Vermaas said: “During the last 25 years, TISE has established itself as an experienced operator of public markets and in particular, as a leading European stock exchange for international bond listings. Building on the availability of technology and expertise from the public market, TISE Private Markets is a very exciting addition to our portfolio of products and services. It represents a significant milestone in the execution of our strategy to diversify and scale up the business and, delivered during our 25th anniversary year, the launch of TISE Private Markets is a major landmark in both the history and future of the business.
“We are proud to have delivered this unique offering for private companies and we believe that it could be also used by other privately owned structures. For example, given the depth and breadth of the funds industry in the Channel Islands, we are keen to explore how TISE Private Markets could have an application in the funds sector. We have started those conversations and we look forward to progressing these discussions alongside the rollout of the current model for companies.”
