Key Takeaways
- • The London Stock Exchange's Private Securities Market (PSM) staged another auction on Wednesday, according to The Wall Street Journal, as the exchange seeks to show that its private-company share platform can function as a working market.
- • Fintech firm Moneybox completed its first transaction on the PSM through a £45 million permissioned auction, the exchange said.
- • Registered Auction Agents (RAAs), a category of LSE member firm that has agreed to the platform's rules, act on behalf of investors, who are the clients on either side of the trades.
- • The PSM is designed to unlock liquidity in private company shares, which have historically been difficult for investors to trade.
Summary
The London Stock Exchange's new private stock market held its latest auction on Wednesday, the Wall Street Journal reported, as the city's bourse works to demonstrate that the platform can support regular trading in private company shares. The Private Securities Market, which the exchange describes as a venue for unlocking liquidity in private markets, is structured around periodic permissioned auctions rather than continuous trading.
The exchange has also highlighted its first transaction by UK fintech Moneybox on the PSM. Moneybox conducted a £45 million permissioned auction, which the LSE welcomed as a milestone for the platform. Coverage of the transaction describes it as Moneybox's first trade on the market, though the available material does not give full details on the counterparties or pricing.
Access to the market runs through Registered Auction Agents (RAAs). According to the exchange's published description, an RAA is an LSE member firm that has agreed to the rules governing the role. RAAs act for investors, who are the buyers and sellers in the auctions, so the agents serve as the intermediary layer between clients and the platform.
The auctions are part of the exchange's broader push into private capital. The LSE's own materials frame the PSM as a way to give investors access to shares in private companies, which have traditionally been illiquid and hard to exit. Whether the latest auction produced significant trading volume or price discovery is not stated in the available reporting.
The exchange has also highlighted its first transaction by UK fintech Moneybox on the PSM. Moneybox conducted a £45 million permissioned auction, which the LSE welcomed as a milestone for the platform. Coverage of the transaction describes it as Moneybox's first trade on the market, though the available material does not give full details on the counterparties or pricing.
Access to the market runs through Registered Auction Agents (RAAs). According to the exchange's published description, an RAA is an LSE member firm that has agreed to the rules governing the role. RAAs act for investors, who are the buyers and sellers in the auctions, so the agents serve as the intermediary layer between clients and the platform.
The auctions are part of the exchange's broader push into private capital. The LSE's own materials frame the PSM as a way to give investors access to shares in private companies, which have traditionally been illiquid and hard to exit. Whether the latest auction produced significant trading volume or price discovery is not stated in the available reporting.
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