The Financial Services Agency of Japan has registered Smartround Securities as a brokerage for secondary market trading of unlisted shares, which could significantly impact the startup and IPO landscape in the country. This initiative is designed to provide investors with better options for liquidity beyond traditional IPOs and acquisitions.
Sylvain Thieullent, CEO of Horizon Trading Solutions, emphasized that this platform will prepare companies for public markets, thereby enhancing the quality of Japan's IPO pipeline. Jeremy Tan, CEO of Tiger Fund Management, noted that Smartround aligns with regulatory goals to improve corporate governance and increase transparency for unlisted companies.
The platform is expected to facilitate better oversight for investors and enable founders to engage with minority investors. However, Tan also pointed out the need for compliance with disclosure requirements, highlighting the ongoing challenge of achieving liquidity and accurate price discovery in private markets without equating them to the transparency of listed stocks