Nasdaq Private Market Launches Transfer and Settlement Solution for Private Company Stock

Nasdaq Private Market (NPM), an institutional marketplace for the trading of private company stock, announced that it has launched a new, open access service to efficiently settle private company transactions regardless of trading venue. 

NPM's Transfer and Settlement Solution (T&S) is built for private companies, broker-dealers, and investors. T&S outsources the complex, distracting, and non-core administrative activities associated with the transfer and settlement of private company shares so clients can focus on their core business. 

This offering provides an end-to-end share transfer workflow and dashboard for private companies, and the broker-dealers that serve them, to better manage and monitor private stock transactions. T&S's technology coupled with NPM's dedicated team of specialists manage secondary block settlement to meaningfully reduce the back-office burden on companies and brokers, regardless of trading venue, broker, or issuer.

"Demand for a trusted, efficient platform to trade private company stock has never been greater," said Tom Callahan, Chief Executive Officer, Nasdaq Private Market. "Companies now wait a decade or more, on average, before going public. This creates an urgent need for liquidity in the $4 trillion market for private, pre-IPO company shares. Effective, reliable settlement is the foundation of liquidity in any asset class. T&S automates each step of the settlement process in private company trades, in some cases completing it inside of a week rather than the 90-120 days that has been typical in this market. This will allow the largest and most sophisticated market participants to trade with confidence in the private markets."