Liquidity for restricted and control securities
The PipeX is developing trading infrastructure for follow-on offerings and resales of restricted and control securities of public companies.
Development stage. The PipeX does not currently offer any services.
The problem
Restricted and control securities are among the least liquid assets held by investors in public companies. Holders who are entitled to sell often have no practical way to do so, and many clearing firms have stepped back from accepting these securities at all.
The same gap affects companies raising capital. When a public company sells shares in a private placement, the price is usually set by negotiation with a small group of investors, with no record of what other capital might have been available. Illiquidity on the way out is paid for on the way in, through wider discounts borne by existing shareholders.
Our approach
We are building an electronic venue where restricted and control securities of public companies can be offered and priced against the live market for the underlying stock, with eligibility and compliance checks built into every step.
Compliance is the product, not an afterthought. A market for these securities is only useful if participants can trust how every position got there.
Intellectual property
U.S. Patent Nos. 11,017,470 and 12,243,098
Additional U.S. applications are pending, and a corresponding Canadian patent has issued.
Regulatory work
Our founder has written to regulators and policymakers on liquidity and pricing in the markets for restricted securities.
- September 2026Comment to FINRA on Regulatory Notice 26-15, Best Execution
- March 2021Letter to Senator Patrick Toomey, Senate Committee on Banking, Housing, and Urban Affairs
- January 2020Comment to the SEC on the Concept Release on Harmonization of Securities Offering Exemptions (File No. S7-08-19)
Contact
Jason Weisz, Founder
Fort Lauderdale, Florida
jweisz@thepipex.com