Nasdaq Spins out NPM to Launch Joint Venture with Major Private Banks

The global technology firm Nasdaq announced yesterday to form a joint venture to establish an institutional-grade, centralized secondary trading venue for issuers, brokers, shareholders and prospective investors of private company stock in partnership with SVB Financial Group (SVB), Citi, Goldman Sachs, and Morgan Stanley.

The joint venture will serve a large and growing market for private company secondary liquidity and will build upon Nasdaq Private Market (NM)’s existing franchise and technology so clients can use one platform to transact with confidence. NPM is an established liquidity provider to private companies.

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The joint venture will provide services as follows:

• Platform with customizable transaction rules and structures to manage and support private company share transactions including tender offers, auction programs, block trades, and continuous trading;

• End-to-end settlement process management, including electronic agreements, issuer consent, approval and transfer, trade confirmations and flow of payments;       

• A single venue for complete management of changes to equity and equity-linked compensation programs including option extension, repricing and execution; RSU liquidity; dividends and payment disbursements;

• Issuer and shareholder direct engagement via an inter-broker network of institutional investors offering technology functionality such as bulletin board and secondary order book-building;

• ​A continuous trading offering to drive price discovery and centralize secondary market activity for eligible shareholders and employees in advance of an issuer’s direct listing or IPO.

Shortly before, Fazzaco reported that Nasdaq published its trading volume for June​, seeing a surge in equity derivatives volume compared to that of May.