Cinnober announces today that it has been selected by the International Property Securities Exchange (“IPSX”) to deliver a managed trading solution. IPSX has applied for approval from the Financial Conduct authority (“FCA”) for a Recognised Investment Exchange (“RIE”) license in order to be able to operate as a regulated stock exchange dedicated to the admission and trading of securities in commercial real estate (“CRE”).
It will be the world’s first CRE specialist stock exchange and is anticipated to launch in 2017.
By establishing commercial property as a mainstream asset class, IPSX will provide asset owners with a new capital markets solution with universal access to European private and institutional investors through its trading platform.
“IPSX will launch a long sought-after public market for commercial real estate that will broaden investor access and provide more options for property owners to fully or partially sell assets” said Cyril Théret, CEO of IPSX. “As a regulated stock exchange, we require a robust and scalable trading platform and we selected Cinnober for their excellent track record as the leading independent exchange technology supplier internationally who can deliver the flexibility and the trading models vital for our success.”
IPSX will offer Exchange Traded Property (“ETP”) securities, a new investment product which will enable retail and institutional investors to buy and sell shares in a single commercial property. IPSX will also provide investors with transparency, liquidity and, for the first time, consistent and publicly available data with exchange-driven price formation.
“Cinnober thrives when breaking new grounds, and IPSX offers a very strong concept with the potential to revolutionize the CRE market,” commented Veronica Augustsson, CEO of Cinnober. “A safe, transparent and resilient marketplace will highly benefit the industry. We’re delighted to have been chosen to help build this exciting new marketplace together with the experienced team at IPSX.”
The solution will be based on the offering TRADExpress as a Service (“TESS”). TESS allows trading venues to leverage Cinnober’s proven and globally recognized trading and clearing technology while focusing on core business. The functionality-rich service supports venues like exchanges, systematic internalizes and multilateral trading facilities with multi-asset class trading. TESS is ideal for new marketplaces that want to get up and running quickly and supports multiple market models including auctions, continuous trading, request for quote, dark pools, and midpoint matching.
Cinnober is a world-leading and independent supplier of financial technology to marketplaces and clearinghouses. Customers include major exchanges with extreme demands on reliability and performance, such as the Australian Securities Exchange, BM&FBOVESPA, Dubai Gold & Commodities Exchange, Euronext, Japan Exchange Group, Johannesburg Stock Exchange, the London Metal Exchange, LME Clear, NYSE and the Stock Exchange of Thailand.