The SEC approved the Aug. 15 launch of Nasdaqs Portal platform to trade 144A securities, said Bethany Sherman, Nasdaq senior vice president.
144A securities cannot trade on public markets and their issuance, often by foreign companies, is aimed for private placement in the institutional community. Nasdaq, a facility of NASD until it became an exchange a year ago, has handled the 144A securities market for 17 years. The exchange plans to add debt issues in the fourth quarter.
According to Nasdaq, capital raised under SEC Rule 144A topped $1 trillion in 2006 and already neared that level in the first half of this year. Goldman Sachs launched its own GS TRuE platform in May for that booming market, and five Wall Street firms Citigroup, JPMorgan Chase, Lehman Brothers, Merrill Lynch and Morgan Stanley are mulling launching a similar venue.