NCPS completes a FINRA continuing membership application process to qualify PPEX ATS.
North Capital, a market-leading provider of technology and brokerage services for exempt securities offerings, announced that it has completed the membership approval process with FINRA and achieved acceptance of Form ATS Initial Operations Report by the U.S. Securities and Exchange Commission, paving the way for secondary trading of unregistered securities, including digital asset securities, on its Alternative Trading System (ATS), the Public Private Execution Network (PPEX.com).
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“We’re very happy to have obtained the regulatory approvals necessary to commence operations of the PPEX ATS,” said Jim Dowd, founder and CEO of North Capital. “The evolution of organized secondary markets will help bring liquidity and transparency to exempt securities investments. As the value of private securities has grown exponentially over recent years, issuers and investors have indicated that they are keen to see secondary markets develop.”
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The launch of the ATS is a natural extension of North Capital’s existing private securities infrastructure, TransactCloud, which enables issuers, funding platforms and broker-dealers to participate in primary exempt securities offerings, including digital asset securities. To date, the firm has been involved in over 1,000 primary offerings totaling $1.9 billion. Secondary markets do not exist for most private company securities, but the introduction of new trading venues such as the PPEX ATS holds potential for enhanced liquidity for investors.
“Though the growth in private markets has been significant over the past five years, many investors and advisors avoid investing in private company securities because of the lack of liquidity and transparency,” said Sara Borazan, Managing Director and Head of Business Development at North Capital. “As organized secondary markets begin to develop, we expect primary markets to continue to expand and grow as well.”
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