Nasdaq partners with Citi, other banks on Private-Stock Marketplace

(Bloomberg) — Nasdaq Inc. has formed a joint venture with Citigroup Inc., Goldman Sachs Group Inc. and Morgan Stanley to set up a trading platform for shares of close-knit companies.

Nasdaq Private Market will be added to the new standalone company, which will also receive strategic investments from the three Wall Street banks and SVB Financial Group, Nasdaq said in a statement Tuesday. The market’s existing technology, customer relationships and regulatory infrastructure will provide a foundation for the joint venture to provide liquidity to close-knit companies, Nasdaq said.

Interest in investing in such companies has grown in recent years as new ways of disclosing them, including the use of blank checks, have gained popularity. The new platform gives close-knit companies, brokers and investors the ability to access, manage and execute their stock trades through a global marketplace, Nasdaq said.

Participants can participate in tender offers, buy-side bookbuilding, auctions, investor block trades, corporate liquidity windows and pre-direct-listing trading.

“This joint venture will accelerate our opportunities in the secondary trading market for private companies and set the standard for technology-driven operational efficiency, compliance and execution,” Nelson Griggs, president of the Nasdaq Stock Exchange, said in the statement.

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