When and why we suspend trading

Understanding why trading is sometimes suspended for companies on Funderbeam.

Suspending of trading is a very common and normal practise on exchanges across the world. 

Funderbeam is a marketplace for private companies and the suspension is put in place, to ensure all investors have access to the same information. The same logic applies as with any other regulated exchange. This protection is enabled during significant changes or announcements by companies such as a new funding round or an Annual General Meeting (AGM).

When is Trading Suspended?

Trading is suspended before price impacting announcements, AGM or ad hoc shareholder meetings which may or may not come with any prior warning. Trading may be suspended because of events impacting companies from outside, like governmental or regulatory decisions etc. Prior to any official announcement,  Funderbeam will suspend trading of the company in question and update the platform with the expected trading recommencement date and time.

Suspended trading during a new funding round

During a funding round, trading may be suspended and recommence multiple times as these processes can sometimes take many months. Funderbeam has a 24-hour suspension policy to ensure all investors have the opportunity to read through the new information prior to trading being opened once again. 

These newer suspension rules have followed an increase in second round fundraisings on the platform, which has resulted in a thorough review of all our trading policies.

Below we have attached a more detailed overview of when trading would be suspended during the funding period.

Trading suspension.pdf

If there are any questions around trading suspension, please feel welcome to contact the Client Relations team.

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