NYSE enters private placement business through investment in ACE

Sept 9 Mon Sep 9, 2013 10:38am EDT

Sept 9 (Reuters) - U.S. public market operator NYSE Euronext said on Monday it was getting into the $1 trillion-a-year private placement business through a minority stake in Ace Group Inc, which runs a private issuance platform for equity, debt and other securities.

Terms of the deal were not disclosed.

NYSE said in a statement it would work with ACE to establish an independent and transparent technology backbone for new private issuances.

ACE, which focuses on primary offerings, currently provides a technology platform where qualified investors can seek out investment opportunities marketed by investment banks and other placement agents.

NYSE rival Nasdaq OMX Group said in March it was creating a market for trading shares of unlisted companies in a joint venture with trading platform SharesPost Inc, tapping into increasing investor interest in private firms.

The Jumpstart Our Business Startups Act (JOBS), passed last year in March, boosted the amount of shareholders an unlisted company can have to 2,000 from 500, making it easier to trade unlisted companies.