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Kiran G. Jun 6, 2024

Knowledge Share

What do you think of secondary market trading (via ATS) for the private markets? Please see this post and especially my comment (if you like it, please "like" it!).

https://www.linkedin.com/feed/update/urn:li:activity:7203938847238365185/

Upvoted by Master and 2 others Upvoted by 3

6 comments

Ravi S. Jun 17, 2024 - 9:17AM (edited) Kiran G. Private stocks that have little liquidity and therefore volatile price movements effect the relative value measures. These value measures remain crucial in assessing a company's worth, transcending mere branding or popularity. A stock characterized by high volatility presents numerous challenges, including elevated ratios like book-to-value, book-to-earnings, tangible book, and price-to-earnings. These metrics collectively influence capital flows in and out of specific stocks. Enhanced liquidity serves to temper the inherent volatility of a stock, thereby stabilizing these calculations effectively. At the end of the day, liquidity and low volatility tend to increase interest in any invesment.

Kiran G. Jun 13, 2024 -10:10AM Ravi Srikantan Interesting thoughts about liquidity. Do you think there any business advantage to liquidity for a company (besides branding and bragging rights about trading volume being a proxy for popularity)?

Kiran G. Jun 13, 2024 -10:05AM Angel Lorente Two great questions, worthy of thoughtful posts. I've added them to my writing pipeline - I'll tag you and Ravi Srikantan on LinkedIn.
"What mechanisms do you think could enhance trust and transparency in such marketplaces?"
"Do you think advancements in blockchain and smart contracts can impact the efficiency and security of these transactions?"

Ravi S. Jun 13, 2024 - 9:10AM Angel, Great Question. I think the advantages of DLT would work on the side of settlement, compliance, and information dissemination. Smart Contracts could also in some of the market making processes, but there is also the caveat that smart contracts are only as good as the design, and manipulation in some of those contracts can cause major issue with the underlying financials of company.

I still believe having a well setup liquidity environment is still key to expanding the utilization of private market equities. That liquidity will lead to better price discovery, and a less volatile exchange environment.

Angel L. Jun 11, 2024 - 1:58PM I believe that secondary market trading via ATS for private markets presents both opportunities and challenges. While it promises liquidity and price discovery, concerns about valuation accuracy, regulatory compliance, and market depth persist.

What mechanisms do you think could enhance trust and transparency in such marketplaces? Also, do you think advancements in blockchain and smart contracts can impact the efficiency and security of these transactions? I'd love to hear your thoughts on these aspects Ravi Srikantan or Kiran Garimella

Ravi S. Jun 11, 2024 - 9:21AM In the realm of ATS trading for private markets, there exists a clear advantage in bolstering liquidity and expanding user participation. The primary hurdles revolve around information transparency and liquidity. Intriguing pathways have emerged, such as the digitization of real-world assets Oasis Pro and TruMid in the corporate bond sector.
While reducing listings may streamline participant engagement, it can inadvertently limit options for clients.
I find auction-style transaction processes to offer a more conducive engagement model, potentially enhancing targeted liquidity and price discovery.
Addressing regulatory frameworks and introducing guidelines for institutional market makers could notably improve the situation.

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Kiran G. Jun 20, 2024

I'm honored to be a co-author of two chapters (multi-party computation, and zero-knowledge proofs) in "Human Privacy in Virtual and Physical Worlds" - pushing the frontiers of technology, with applications in blockchain specifically.

Angel Lorente Ravi Srikantan

https://www.linkedin.com/feed/update/urn:li:activity:7208813608338620417?updateEntityUrn=urn%3Ali%3Afs_feedUpdate%3A%28V2%2Curn%3Ali%3Aactivity%3A7208813608338620417%29

Upvoted by Michelle A. and 3 others Upvoted by 4

Kiran G. Jun 6, 2024

Upvoted by Master and 2 others Upvoted by 3

6 comments

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