Hedgebay Launches Electronic Settlement Service

Sep 25 2013 | 7:57am ET

After a year of development, Nassau-based secondary market provider Hedgebay has launched an electronic settlement service for transactions.

The service, which the firm says is the first of its kind, will be available on Hedgebay’s website and is expected to initially reduce overall trading time of secondary market transactions by up to 20% and eventually by as much as 40% or 50%. Currently, secondary market participants rely on a manual trading and settlement process and transactions typically take at least 90 days to close.

Hedgebay believes the spin-off benefits to shortened trading times will include reduced deal-break risk, reduced operational costs, increased back-office efficiency and, ultimately, a greater number of participants in the secondary market and improved secondary pricing and liquidity.

Said Jared Herman, Hedgebay founder, in a statement:

“The ultimate endgame of this progression is being able to complete secondary trades in a single day. That is what Hedgebay is working towards. That point may be a while away, but the launch of the Electronic Settlement Service is a massive step in that direction. This is a glimpse into the future of the secondary trading industry.”


In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…