Nasdaq to Set Up Trading Post for Private Firms
Nasdaq OMX Group said it will form a marketplace for trading in shares in unlisted companies in a joint venture with SharesPost, whose private trading platform has run into regulatory trouble.
The stock exchange operator will own a majority of the venture, Nasdaq Private Market. Specific terms were not disclosed.
The new market, to be based in San Francisco, will launch later this year, pending regulatory approvals, and will be led by SharesPost founder Greg Brogger.
SharesPost's online trading platform, which matched buyers and sellers of unlisted shares, was charged by the U.S. Securities and Exchange Commission last March for failing to register as a broker-dealer before offering securities.
SharesPost's broker dealer and investment advisory business will continue to operate separately from the joint venture, the companies said in a statement.