Secondary Market – July update

Secondary Market – July update

24th July 2020 by Joel Ippoliti

When investing, your capital is at risk.

July’s market saw levels return to their pre-Revolut levels of trading with 907 sharelots sold worth £229k. We had 456 buyers and 423 sellers transact across 162 businesses at an average value per business of £1.4k. Each seller made an average profit of £202 delivering real cash returns back into accounts. 

The sharelot sales volume by price tier:

These sharelots can be broken out by sector as follows:

…and values by business as follows:

There remained strong sell-side demand with over £5.7m worth of shares submitted for sale by 2,033 sellers across 391 businesses in 4,800 lots. We ended with a clearance rate of 5% by value (£4.6m listed against £249k sold) and 19% by volume (4,800 lots listed against 907 sold). Clearly this represents a fantastic opportunity if we can unlock it.

For this market we switched servers (virtually) for some with greater CPU power and increased the number of them and consequently saw no increase in page load times nor impact on usability across the site on market open. Previous optimisations seemed to be working well to deliver this but it remains a watching brief.

We previously enabled an in-platform notification alerting sellers to confirm a sale once a buyer had been found in an attempt to reduce the number of cancelled sharelots due to sellers ‘doing nothing’. The notification seems to be working for those that see it with very few cancellations from those that do. However we saw a return to previous cancellation levels this market with 50 sharelots cancelled due to seller inactivity. We will continue to monitor this rate but I suspect we will move to intervene by enabling SMS for this alert sooner rather than later.

We have now completed our transition to bring the primary and secondaries together on the same page with common filtering controls. The navigation now directs to the same page with different tabs highlighted which should reduce the complexity of the proposition and aligns the experience more closely with the primaries. We’ve had zero user feedback, either good or bad and when you are making such a fundamental change as this we see this as a good result. 

For August’s market we already have £4.6m submitted for sale (over 88% of which was submitted from the auto relist feature) from 1,700 sellers. Clearance rates are clearly an opportunity again in this market and our beta solution is being exposed by some of its limitations. Given this situation we have prioritised a relatively small change that will have a big impact on these rates and I look forward to being able to announce this ideally by next week. Stay tuned!

Joel Ippoliti

Joel Ippoliti

Chief Product Officer

Digital Agency Kent