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Trading Platforms Explained

Thursday, December 13, 2018

It’s not uncommon for an unlisted company or entity to have an extensive shareholder or unitholder base comprising early-stage investors, supportive security holders or current and former employees. Over time, these people may wish to sell their unlisted (illiquid) securities. But finding a formal mechanism to do so can be challenging.

Holders of unlisted securities may also struggle to gain independent valuations as well as relevant and current corporate documents relating to their holdings.

To solve this problem, trading platforms were developed. They are software programs linking investors, intermediaries, traders and brokers to secondary markets. Trading platforms provide a vehicle to open, close and manage trading accounts as well as buy and sell securities.

Features of online trading platforms

Online trading platforms offer an array of features and tools for sellers, buyers and intermediaries including the ability to:

  • place a variety of buy and sell orders
  • check order status
  • access news feeds
  • view a list of securities currently held
  • access statements and forms
  • get real-time quotes
  • use charting tools that enable the investor to see the share price performance against moving averages
  • access analyst reports, recommendations, company financial data and earnings forecasts

A Trading Hub for unlisted securities

PrimaryMarkets provide secure, controlled and private trading hubs to facilitate secondary trading (buying and selling) of issued securities. These platforms offer an informed and orderly environment for security holders to trade with confidence, independence, transparency and confidentiality.

PrimaryMarkets’ trading platforms present a number of advantages including:

  • Customisable investor resources where presentations, accounts or research reports can be viewed by potential investors
  • Transactions which are transparent, trusted and independent
  • Dedicated private ecosystems which can be fully customised to adhere to specific trading rules such as:
    • Limiting trading to existing security holders only
    • Restrictions so only ‘Qualified Buyers’ can participate
    • Buyer permits for third-party investors from the PrimaryMarkets network
  • Access to transaction controls to manage timing, conditions of sale and access to the greater PrimaryMarkets network
  • Dedicated customer support policies to enable online and offline assistance from PrimaryMarkets’ account managers

PrimaryMarkets is here to support you by delivering sophisticated platforms which connect our dedicated and private Trading Hub ecosystems with better aligned institutional, wholesale and high-net-worth investors. Contact us to learn more about our trading platforms or to discuss the sale of your unlisted assets.

Remember: a trading platform doesn’t guarantee a profit. The role of a trading platform is to:

  • Facilitate the trade
  • Streamline the process
  • Connect buyers, intermediaries and sellers

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