NEW YORK: NASDAQ has accompanied the launch of its new private stock trading system for the ultra-wealthy, Portal Market, with a targeted outreach blitz to both potential investors and the media.
Three NASDAQ groups – NASDAQ Capital Markets, NASDAQ Corporate Client Group, and NASDAQ Transaction Services – have contacted institutional investors, private equity firms, international companies, and others to generate interest and add investors. It launched August 15.
John Jacobs, EVP of NASDAQ Financial Products, who handles worldwide marketing, has conducted over 110 interviews both nationally and internationally since January in support of the new system. Media outlets he has spoken with include CNBC, CNN International, and others on the radio and in print.
“This is not a mass media kind of communications effort,” said Jacobs. “This is for a qualified institutional buyer. It’s very targeted direct sales and marketing.”
Portal Market is available to those institutional investors with a minimum of $100 million in assets. The securities listed on this market platform will fall under a special restricted securities category, 144A, which doesn’t require the same public financial statements as other securities and can only be sold among qualified institutional buyers (QIBs).
Portal Market is intended to add functionality to this sort of trading, which will lead to greater investment.
“[These traders] are investing in companies that have less liquidity and less transparency,” says Jacobs. “They’re saying they want this transparency.”