Liquidity

The next dimension of the private markets.

As an issuer or capital raiser, you are competing for investors’ capital. Investors will consider many variables in their investment decision, but increasingly, to stay ahead of the competition you need to add liquidity to your offering. Whether it is to attract investors in a funding campaign, keep shareholders engaged or strike a competitive edge with your employee benefit, a liquidity, or exit option, will make a difference.

Syndex offers Secondary Market functionality where Investors can buy or sell shares in either a Continuous or Periodic Market.

Peer-to-peer trading in a self-service model; participants bid and sell when they like, based on market demand. Issuers support this facility by providing continuous disclosure information to the market.

“Within 1 day I had a bid on my offer, within 2 days it was finalised. It was an empowering process where I had full control and trust. I could negotiate with the bidder and know that we were both getting the right price.”

This market operates as a trading event or auction. These events open, and then close, within a defined period. Customisable, this market is suitable for shares, units, commodities or other proportional investments. There are a range of parameters we can adjust, including price floor/ceiling, timing of bids/offers, seller eligibility, existing/new buyers and intervals.

“Our switch to Syndex for our employee share programme is a switch from manual admin heavy auctions to automated events, with trading in real-time. It’s been a step-change in the level of transparency it provides our employees and we’ve been able to invite a wider pool of employees into the event.”

Why we honour two markets

Our mature peer-to-peer continuous secondary market, which has allowed participating investors to experience better price discovery and liquidity over the last seven years, remains a highly efficient mechanism for trading assets anytime, anywhere. The introduction of the periodic market acknowledges the fact that there are many instances where a continuous market just isn’t appropriate, but recognises at the same time that investors do want liquidity opportunities perhaps once or twice a year. It’s in this scenario that the periodic market really hits its straps, by focussing investor trading desires on a limited number of liquidity opportunities which has the natural tendency of creating investment tension and consequently higher levels of participation.

Making the decision between a continuous market and a periodic market is usually more straightforward than it initially seems. See how the continuous market and periodic market compare side by side.

The market is continuously available with no specific timeframe giving investors access to trade their assets anytime, anywhere

The market is available at set times during the year, with the frequency and scheduled availability set by the Issuer

Continuous market access results in uncoordinated opportunities becoming
available at unspecified times often resulting in thinner market depth

Limited market access that is predictable often concentrates interest in the scheduled liquidity event often resulting in deeper market depth

Continuous disclosure required

Disclose only during the auction period
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Can choose the timing to suit
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Potentially lower costs due to limited disclosure periods

Convenient for investors who have a level of urgency to liquidate their position

Inconvenient for investors who have a level of urgency if the next auction is some time away

Fair, orderly and transparent

Peer-to-peer trading

Trading via the auction framework, with control and settlement via a principal (usually the Issuer)

Price is determined per trade,
between the individual buyer and seller

The auction algorithm determines a single clearing price that represents the highest price for buyers and the lowest for sellers, and the level at which the most trade volume will occur, and the least trade volume left unmatched

Syndex Issuers now have access to a fully interactive marketplace experience, based on the open and close auction algorithm. This offers market participants access to enhanced liquidity in an exclusive trading event. With Issuers choosing the configuration that suits their situation, it provides a fair, orderly and transparent outcome for investors looking to buy and sell financial product assets.

Smart tech that ensures ease of use for everyone:

for the Issuer or ‘Principal’

The auction is automated with little to no administration required within the trading session. Settlement processes following the close (sending instructions, generating reports and executing trades) are carried out on the platform.

for Managers setting up the market

Getting started on the Periodic Market involves a few decisions on parameters and handing over your data - we do the rest! Parameters that can be adjusted include price floor/ceiling, timing of bids/asks, seller eligibility, existing/new buyers and intervals. Talk to us about how these can work best for you.

for Investors

The auction or trading event is accessed via the investor’s portal. The investor can then view the entire auction in real-time, with the ability to create, amend and delete orders. Once the auction closes all orders are executed at the same price - the price that will see the most orders completed, and settlement reports are distributed.

See how this flexible market works with these scenarios:

Proficiency and professionalism on the Syndex platform

Our liquidity options work in conjunction with our investment management module and the investor portal. This integration offers efficiencies that reduce administration and errors, and enhance customer communication.

Talk to the private market experts

We can guide you through the various market options to ensure you get the best outcomes for your business. Getting started involves a few decisions on parameters and handing over your data - we do the rest!