Tradegate Exchange enables trading in German and selected foreign new issues during the so called pre-IPO phase of a public offering. The trades completed during trading on a when-issued-basis each relate to the first day of listing announced on the intended market. The implementation regulations When-Issued Trading apply.
Through PREPOX® Tradegate Exchange is also able to offer traders a tool for assessing the mood on the private investors’ market for new issues.
In the run up to the first listing, the percentage change in price of a new issue is measured against the average rate of the respective book-building spread and shown separately. Subsequently, all current German new issues flow into PREPOX volume weighted, based on the number of shares actually traded on TRADEGATE®.
Since well over 1 million private investors have access to TRADEGATE® this gives a reliable picture of the current estimation of new issues.
If the book-building spread is changed in the course of a new issue, the original average rate is still kept as the reference point because such a change made by the consortium banks already represents a reaction to the strength or weakness of the public's interest in a new issue.
By introducing PREPOX TRADEGATE® is providing a unique instrument for observing the attractive market segment of new issues. The range of services includes:
- Overview of all current new issues
- Display of the book-building spread
- Provision of currently tradable bid and ask prices
- Publication of the number of transactions
- Indication of current trends
- Illustration of the new issues market in a separate index