Nasdaq OMX is joining the race to attract share trading in budding, fast-growing technology companies by forging a joint venture with one of the pioneers of the private secondary markets in the US.
The agreement with SharesPost will see Nasdaq venture for the first time into the market for private companies, tapping into a form of trading that led to soaring valuations on companies such as Facebook, Groupon and Zynga before their initial public offerings.
The agreement with the Silicon Valley-based company reflects growing competition to create new ways to trade shares in private companies following last year’s Jobs Act, which was designed to make it easier for promising young companies to raise capital in the US.