ASMX provides the functionality to allow your customers to buy and sell loans between themselves as well as providing visibility for others to trade your loans.
Why is it important to have liquidity?
Risk management is at the core of what you do as a lending platform. Having a loan exchange integrated into your platform will allow your customers to manage their loan portfolio in the same way.
Your loan exchange will also allow lenders to diversify across a number of your loans, freeing up those selling to withdraw funds or invest in new ones and diversify further.
Talk to us about underwriter programs and how this can boost your primary market. A loan exchange gives you multiple options to create a group of underwriters to boost your primary market.
Any online debt originator can apply to be integrated with ASMX. An integrated platform has a duty to maintain and uphold the reputation and integrity of the ASMX market. They play a crucial role in maintaining the quality of the markets and, in particular, are responsible for assessing the appropriateness of an debt issuer for admission to listing.
ASMX offers 2 classes of intergration:
Class 1:Online Lending Platforms – those platforms that originate loans, have lending customers and manage the process of paying interest to those lenders, and whom hold the appropriate regulatory status.
Class 2: Balance sheet lenders and other debt originators. Applicants must have relevant and satisfactory experience to make loans and adequate process and procedures in order to manage those loans.
ASMX welcomes applicants from within the EEA and Switzerland and will consider outside of these areas on a case by case basis.
All prospective Integrated Firms should be:
a body corporate or a partnership; and either be licensed or authorised by a recognised Competent Authority or Regulatory Authority of equivalent standing preceding the application; or a Member of another EU regulated market preceding the application; and able to demonstrate relevant experience for both senior executives and staff.
Where the above requirements are not met, ASMX may at its sole discretion admit as a Integrated Firm an applicant which satisfies ASMX that it is competent to discharge the responsibilities of an Integrated Firm; has appropriate financial resources for the role that they are to perform; is fit and proper; where applicable, has adequate organisational arrangements..
A vital component of that determination is the due diligence process.
We aim to have you up and running in four weeks. This is dependent on your business model and the complexity of your platform.
We don’t charge for integration at the moment but we may charge if there is a lot of work to undertake with your platform.
The charge is £1,000 or 0.5% of your volume (charged at 0.25% to the seller and the buyer) on a monthly basis. Your platform can choose to absorb these costs or pass them on to your customers making the platform a zero cost base for your business.
Empirical evidence from running a secondary market suggests that for every £1 million you have as a loan book listed on the platform you could expect £2,000 per day of trading activity in a normal environment.
Your admin console allows you to control which loans are listed on ASMX amongst other features such as pausing trading, restricting prices etc.