Marketplace Update Announcement
Having recently been granted a trading licence in Singapore, we are ready to launch our next generation Marketplace on 29 January 2020 (“Launch Date”). From the Launch Date, your trading of investments will be operated by our Singapore entity, Funderbeam Markets Pte. Ltd, rather than by Funderbeam Markets OÜ in Estonia. We believe this will allow us to deliver a number of positive benefits to investors, and we will be continuing our work to roll out improvements to functionality and features during the course of 2020.
What happens on 29th of January 2020? (The first major update)
Effective 29 January 2020, a new set of Marketplace rules will be adopted which will allow us to include required key elements for Singaporean legal and regulatory reasons.
The new rules can be read here, however we wanted to highlight the following key changes:
- We will be introducing the “pre-funded” wallet on all purchase orders (Buy Trades) to ensure that all matched orders are fulfilled. This means that one cannot match or place any buy orders on the Marketplace without having enough available funds to fulfil them.
- With the Singaporean licence, we are able to remove the “Priority Rights” from trading companies. This removes the mandatory priority period that allowed current investors the ability to interrupt trades and offers all of our community equal opportunity to all orders.
As the changes are significant in nature, trading will be halted from 21 January (3pm UTC) to 29 January 2020 (11am UTC) in order to allow for the migration of all the instruments. During this period, no new orders will be accepted into the Marketplace. All existing orders will be cancelled and the Marketplace will open on the Launch Date with a clean order-book. All pending trades will settle.
What else will change soon? (The second major update)
The second major update is planned 4-8 weeks after the Launch Date with the exact to be confirmed 14 days prior to platform members. There will be various visual and design changes occurring throughout the period, however we wanted to highlight that the following major updates will be coming soon:
- Partial and Automatic Matching will allow for orders to be joined together to complete a trade. This has been a widely requested feature that the new licence from Singapore allows us to offer.
- We will also be revising the Fee Schedule to include a Trading Fee of 0.5% on all sale trades. This fee will be deducted automatically from the calculation of the proceeds to the seller and will apply only to trades from that point forward.
As mentioned above, the Marketplace will be hosted by our Singaporean entity. However, if you reside outside of Singapore, your order will be placed on the Marketplace by Funderbeam Markets Limited, which is authorised and regulated by the Financial Conduct Authority in the UK. Continuing to use the Marketplace and making trades from the Launch Date, this will be deemed to mean you have agreed to the new terms here on which the Marketplace will be operated.
This changeover to our Singaporean entity allows us to make ongoing improvements to the Marketplace on the platform, and the most obvious changes will be visual as we roll out additional improvements in the following weeks.
As always, we are here to support the transition and we are happy to answer any questions you might have in relation to the new Marketplace and rules, and how trading will operate.