Restricted Stock Partners' (RSP) new Restricted Securities Trading Network (RSTN) facilitates the buying and selling of restricted securities of public companies.
RSTN, which was formed on a pilot basis in April 2005, has already signed up more than 125 institutional and accredited investors representing more than USD 50 billion in investable assets.
Restricted securities -- including restricted stock, warrants and debt -- are a USD 1.2 trillion asset class, according to Depository Trust and Clearing Corporation (DTCC). Restricted securities are issued through private placements, corporate mergers and reorganizations, the exercise of stock options and as compensation for services.
"Owners of restricted securities are typically unable to sell their positions into the public market, given legal or contractual restrictions," says Barry E Silbert, RSP founder and chief executive officer. "The Restricted Securities Trading Network provides liquidity to holders by matching them up with potential buyers in privately-negotiated sales."
Existing members of the network, attracted by the opportunity to purchase securities at a discount and to find liquidity for some of their restricted holdings, include leading financial institutions, hedge funds, mutual funds, pension funds, private equity and venture capital firms, money managers, family offices, registered investment advisors and high-net-worth individuals.
At no cost, sellers can anonymously list their restricted securities for sale to members of the Restricted Securities Trading Network by contacting the RSP trading desk at www.RestrictedStockPartners.com . Institutional and accredited investors can register with the network as potential buyers at www.RestrictedSecurities.net .
In addition to matching up buyers and sellers, RSP administers all aspects of the transactions (negotiating terms, documentation, processing, etc.). RSP uses Continental Stock Transfer & Trust Company, one of the country's leading transfer agents, to act as the independent escrow agent to facilitate the exchange of securities and funds.
"Executing the sale of restricted securities can be complicated and time-consuming," according to Continental Chairman Steve Nelson. "RSP has significant expertise in handling all types of restricted transactions, and has developed the forms and procedures needed to simplify the private sale process."
Unlike other monetization strategies, which require liquid, marginable securities, a privately negotiated sale can take place with no minimum share price or trading characteristic. As a result, anyone with a significant amount of wealth tied up in restricted securities can potentially liquidate the position.
RSP, which owns and operates the Restricted Securities Trading Network, also offers customized hedging and other monetization strategies for holders of restricted stock and concentrated equity positions. RSP is a division of Keane Securities Co., Inc. (member NASD), a specialty brokerage firm specializing in trade execution, market making and corporate finance.
For more information on trading and execution please click here