InvestX announces Pre-IPO stock trading for broker-dealers
Retail investors are growing frustrated by always showing up late to the equities trading party as growth stocks face high demand in a world tied to remote work under lockdowns. Pre-IPO investing could be the next big thing.
The much-desired opportunity of investing in pre-IPO giants may finally become a reality for many retail traders as broker-dealers will be provided with greater access, liquidity, and transparency in private markets with the launch of InvestX GEM – an acronym representative of the high-growth industry, Growth Equity Marketplace.
InvestX aims to end the typical long holds of private investing and allows for block and single share trading. The platform connects broker-dealers with access to shares of private billion-dollar tech companies and offers them a platform to trade these shares.
FIX connectivity for real-time information and trading is the key differentiator of the company’s offering. The cloud-based solution can be connected via a web-based login or a FIX protocol, which integrates directly with the back-end systems of broker-dealers, further facilitating the electronic trading of private securities.
Marcus New, Chief Executive Officer of InvestX, said: “Last year we saw an enormous influx of pre-IPO giants going public and doubling in their trading debuts from their set IPO price. As this asset class continues to explode, we are excited to introduce a next-generation electronic platform to more easily facilitate private market transactions. We continue to work to democratize investing in private equity, and our marketplace does just that by creating new opportunities for accessing and trading in the once elusive private markets.”
The launch of InvestX GEM is coupled with the opening of its new headquarters in New York City and the appointment of Brian Schaeffer as Managing Director, Head of Business Development: “InvestX GEM is democratizing the private equity markets by creating a trusted marketplace for the sell side to invest in private securities. We have designed a platform and user interface that has the same tangibility that traders are familiar with, said Schaeffer.
Pre-IPO stock trading might become a new trend among retail traders and an opportunity for multi-asset trading platforms to compete for customers.