March 30, 2021
IPSX has announced the introduction of new features to IPSX Wholesale which provide more flexibility for issuers and more opportunities for institutional investors to trade. Shares admitted to trading on IPSX Wholesale may now be traded under two market models.
Market Maker Model
Shares which trade under the Market Maker model will have at least one market maker who will provide firm two-way prices throughout the trading day against which investors can trade.
The Broker-Driven model will operate in the same way as the current IPSX Wholesale model. Shares which trade under the Broker-Driven model will not have market makers. Instead, brokers will publish firm quotes for orders in such shares.
Issuers admitted to trading on IPSX Wholesale will be able to select the most appropriate market model for trading in their shares.
Further, the minimum value that assets admitted to IPSX Wholesale must generally have has been aligned with that of IPSX Prime to £50m.
IPSX has updated its Rules for Issuers, Rules for Members and Guide for Trading Members to incorporate the changes that arise as a result of the introduction of the new market models.
Features of IPSX Wholesale include:
Alan Ramsay, Chief Executive for IPSX UK said “Our Wholesale market provides significant choice and flexibility for commercial real estate owners with no prescribed minimum free float on admission. As well as stabilised assets, IPSX Wholesale is open to development and regeneration projects in addition to more complex structures such as JV REITs. The new features we have announced today make the market even more attractive to both real estate owners and institutional investors. We look forward to welcoming new issuers to our new market over the coming months.”
To join the market, IPSX Wholesale issuers are required to appoint an IPSX Lead Adviser to take them through the admission process, and an IPSX Approved Valuer to produce a RICS compliant Red Book Valuation.