The Guernsey-headquartered International Stock Exchange (TISE) has launched TISE Private Markets.
The service for private, unlisted companies gives organisations access to an integrated set of tailored electronic trading, settlement and registry solutions.
TISE Private Markets is a dedicated marketplace for private companies that aim to improve their shares' liquidity and attract potential new investors.
Private SMEs are not typically traded on a public exchange or stock market but represent a growing market. McKinsey valued the total private markets assets under management at $11.7 trillion as of 30 June 2022, with an annual growth rate of nearly 20% since 2017.1
The key characteristics of TISE Private Markets are:
- Companies have complete control of their dedicated market, from approving and onboarding shareholders to scheduling auction events and managing registers;
- The bespoke auction model, which leverages proven, state-of-the-art trading technology, concentrates liquidity, enhances price discovery and reduces price volatility;
- 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);
- 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;
- There is a single annual subscription fee for the service, and there are no intermediary charges, transaction fees or other commissions; and
- A cloud-based service from an established market operator within Guernsey - a respected International Finance Centre known for its stability, substance and security
The exchange, which like its headquarter jurisdiction has a reputation for innovation and meeting the market's demands, believes that the service could be used by other privately-owned structures such as investment funds.
Guernsey has a 50-year history as a financial services centre servicing alternative assets such as private equity, infrastructure and alternative debt funds. As a result, the exchange is well-placed to explore the application of TISE Private Markets locally.
TISE's latest innovation comes in the exchange's 25th anniversary year. TISE is a leading European stock exchange known for listing international bonds and equities and has increased its listings with year-on-year growth.
Companies can find out more information and start their journey to joining TISE Private Markets by enquiring with TISE via www.tiseprivatemarkets.com.
Footnote
1.McKinsey Global Private Markets Review: https://www.mckinsey.com/industries/private-equity-and-principal-investors/our-insights/mckinseys-private-markets-annual-review
For more information about Guernsey's finance industry please visit www.weareguernsey.com.
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