Collectable Trading*

A guide to buying & selling shares on our newly improved secondary market.

Collectable is the only fractional investing platform to offer 3pm to 4pm EST “continuous” secondary trading every weekday for every eligible asset.

This means investors can submit live Bids and Asks with instantaneous matching between those times every day from Monday to Friday, should the Bids and Offers be within the market parameters.

In addition, investors can submit their Bids and Asks on a 24/7 basis, called “Post Only.” This allows users to see “where the market is” at all times, and orders submitted during this period will be matched at 3pm on the next week day provided all criteria are met.

Our goal is to create the most dynamic and liquid platform for investors – and this is just the start!

To help with this, we built our secondary market on “LAST” principles:

Liquidity *

By utilizing an Alternative Trading System through Templum Markets LLC, Collectable will introduce “continuous” trading to the fractional community via “Power Hour.” Trading will be conducted in partnership with Templum Markets LLC, a member of FINRA and SIPC and an SEC-registered broker dealer and Alternative Trading System (“ATS”).

Authenticity

Each collectible item on Collectable’s platform has been graded and authenticated by industry leading experts.

Security

Trade with qualified buyers and sellers only.

Transparency

24/7 “Post Only” bid and ask quotation, so investors can see “where the market is” at all times.

How it works

It’s simple: Here are the key points.

Trading Basics

Once securities are eligible to begin trading on the secondary market, they will be visible in the ‘Trading’ tab in the Collectable App. Buyers indicate how much they are willing to pay per share with ‘bids’, sellers indicate how much they will sell for with ‘asks’ – and when a bid and ask meet during a designated trading window, a trade happens.

Trading Windows

Five (5x) trading windows per offering per week, from Monday to Friday. Meaning once securities are eligible to begin trading on the secondary market, investors will have the ability to buy and sell shares in that offering every weekday.

Post Only Mode

Investors can submit their bids and asks on a 24/7 basis, called “Post Only.” This allows users to see “where the market is” at all times. Bids and offers submitted during Post Only mode will be matched and executed at 3pm EST in designated trading windows provided all criteria are met. Orders will only match if another investor places an order for the same asset, at the same price you placed or a better price. A buy limit order will only execute at the limit price or lower, and a sell limit order will only execute at the limit price or higher.

Power Hour

Each eligible offering will trade on a continuous basis between 3pm-4pm EST every weekday, the final trading hour of the day, with instantaneous matching should the bids and offers be within the market parameters.

Lock-Up Period

90-days, for now. Funded IPO’s will be available for trading 90-days after the deal is fully funded.

Brokerage Fees

Each investor will be assessed a 1% Templum Markets Brokerage Fee on every buy/sell order on the platform.

About Templum Markets

Secondary market activity via Collectable is conducted through Templum Markets LLC, a FINRA and SIPC member and an SEC-registered broker dealer and Alternative Trading System (“ATS”).

Getting set up

Investors will be required to answer some additional verification questions before participating in Collectable Trading*. Collectable and Templum Markets are required to ask Know Your Customer (“KYC”) and Anti-Money Laundering (“AML”) questions to protect investors while assessing suitability.

1

ONE

To complete these, investors must visit the ‘Account’ section in the bottom app navigation, tap ‘Verify Account’ and then tap ‘Trading Verification’.
2

TWO

Completing the questions takes around 5 minutes, and we treat all personal information with the utmost care, in accordance with our privacy policy.
3

THREE

Accounts will usually be verified within minutes; however, on occasion, it can take slightly longer. We recommend investors apply for verification at least 2 days in advance of when they are looking to trade.

Adding & withdrawing funds

Investors will need to pre-fund their “wallet” in order to buy shares on the secondary market via Collectable Trading.*

Important Note: this is different from Collectable IPOs, in which investors simply link their bank account or credit card and purchase instantaneously. Collectable Trading* requires funds to be pre-loaded. Funds held in the Collectable wallet cannot be used to buy shares  in IPOs. We hope to release this feature soon. 

To be eligible to buy shares on Collectable Trading*, investors will need to “top up”, or pre fund, their Wallet using their primary payment method.

The following shows how:

Open the ‘Account’ section in the bottom app navigation then tap ‘Top Up’ on the Wallet at the top of the screen.

Tap to specify the amount, then enter the amount to Top Up.

Check the amount and confirm the Top-Up

Check the status of your Top-Up in the ‘Activity’ section of the bottom app navigation.

Available Funds can be withdrawn at any time by tapping ‘Withdraw’ on the Wallet. A $0.50 fee will be assessed to withdraw funds from Collectable.

Placing orders

A ‘Bid’ signals intent to buy an asset at a certain price. An ‘Ask’ signals intent to sell an asset at a certain price. 

Bid and Ask orders are limit orders. When you place an order for an asset, you will need to input a price and quantity. 

You will also be asked to input a “time in force” for the order – Good for Day or Good til Cancel. Good for Day orders will expire and be removed from the marketplace at the end of the trading day if no match occurs. Good til Cancel orders will remain open in the marketplace either until you cancel the order, or until the order matches. You can edit the price, quantity, and expiration of an open order, as well as cancel an order, once it is placed. 

You cannot edit or cancel an order after it has matched. 

The following shows how to submit a Bid or Ask on Collectable Trading*:

Open the ‘Feed’ section in the bottom app navigation, then tap on the ‘Trade’ tab in the top navigation bar – this is where assets eligible for trading will be displayed.

Open the asset page to review asset & trading information and when comfortable, tap the ‘BUY & SELL SHARES’ button.

Tap the ‘Buy’ tab to buy. Tap the ‘Sell’ tab to sell.

Tap “See all bids & asks” to review current trading demand.

Specify a Price per Share and a number of shares at which you would be comfortable buying/selling.

Review the order & place the Bid/Ask.

Visit the ‘Activity’ section in the bottom app navigation, then tap on the ‘Open Orders’ tab to review or cancel the order before the matching time.

After a successful order, review the ‘Portfolio’ tab of the bottom app navigation.

Order matching*

Orders will be “matched” beginning at 3pm EST in a designated trading window for a particular offering provided all criteria are met. Trading windows are every weekday.

Open orders are automatically matched and executed based on a matching algorithm for limit orders, which considers the limit price and the time the order was placed. 

Your order will only match if another investor places an order for the same asset, at the same price you placed or a better price. A buy limit order will only execute at the limit price or lower, and a sell limit order will only execute at the limit price or higher. 

Time is considered when there are multiple orders for the same price. For example: 

  • Investor A places a buy order for 10 shares, at $10 at 3:00 PM
  • Investor B places a buy order for 10 shares, at $10 at 3:05 PM
  • Investor C places a sell order for 10 shares, at $10 at 3:10 PM
  • A trade would be matched and executed between Investor A and Investor C. Investor B’s order would still be open.
  • A single order may be matched in multiple trades. In the example above, if Investor C placed a sell order for 20 shares at $10, there would be two trades:
  • Trade #1: Investor A, Investor C for 10 shares at $10
  • Trade #2: Investor B, Investor C for 10 shares at $10 

Power hour

During the final hour of each trading day, between 3-4pm EST, Collectable will unveil a “continuous” secondary market. Investors will be able to submit live bids and offers with instantaneous matching, should the bids and offers be within the market parameters. 

Investor communication

Investors will be notified by email once trades are executed.

Trade settlement

Once an order is matched and executed, it is now a trade that will be settled. Settlement time is T+2, or two business days from transaction time. 

Trade settlement will occur automatically, and once complete, you will see the balance for the cash or the asset in your account. Once a trade is settled, the balance will be available for you to trade with.

Fees

A Templum Markets brokerage fee of 1% will be charged to each buyer and seller per transaction.

FAQs

How are Bids & Asks matched?

Bid and Ask orders are limit orders (when investors place an order for an asset, you will need to input a price and quantity). Open orders are automatically matched and executed based on a matching algorithm for limit orders, which considers the limit price and the time the order was placed. Your order will only match if another investor places an order for the same asset, at the same price you placed or a better price. A buy limit order will only execute at the limit price or lower, and a sell limit order will only execute at the limit price or higher. 

Time is considered when there are multiple orders for the same price. For example:

  • Investor A places a buy order for 10 shares, at $10 at 3:00 PM
  • Investor B places a buy order for 10 shares, at $10 at 3:05 PM
  • Investor C places a sell order for 10 shares, at $10 a 3:10 PM

A trade would be matched and executed between Investor A and Investor C and Investor B’s order would still be open. 

A single order may be matched in multiple trades. In the example above, if Investor C placed a sell order for 20 shares at $10, there would be two trades: 

  • Trade #1: Investor A, Investor C for 10 shares at $10
  • Trade #2: Investor B, Investor C for 10 shares at $10 

How (and when) are trades settled?

Once an order is matched, it is now a trade that will be settled. 

Settlement time is 2 business days from transaction time. 

Trade settlement will occur automatically, and once complete, investors will see the balance for the cash or the asset in their account. Once a trade is settled, the balance will be available for sellers to trade with.

What happens if/when a buyout offer is made on an asset that is live trading?

Once a verified and legitimate buyout offer is received and reviewed by Collectable, trading will be halted on an asset and a 48-hour shareholder vote will be commenced. Trading will re-open on the next available trading window following the shareholder vote, should the offer be declined. If a buyout offer is accepted, the asset will be retired from the platform and shareholders will be paid out pro-rata to their ownership position at the time the buy-out offer was made public

Do bids and offers have to be within a certain range to be displayed?

Yes, bids and offers need to be within +/- 10% of the last sale price in order to be displayed during continuous trading.

Can I buy and sell the same shares on the same day?

No. There is a 2-day settlement process on shares purchased. Those shares will be eligible to be sold 2 days later.

What security will be in place to prevent market manipulation on the secondary market?

Collectable has partnered with Templum Markets LLC, a member of FINRA and SIPC and an SEC-registered broker dealer and Alternative Trading System (“ATS”), to provide a secondary market experience through Collectable’s platform. 

As such, we have strong oversight and visibility into the secondary market. Collectable and Templum Markets LLC have put preliminary parameters in place. For instance, investors will only be able to submit bids and asks within +/- 10% from the last trading price during ‘Power Hour’. Orders in which an individual investor is both buying and selling simultaneously will be rejected. Suspicious bid/asks will be flagged and reviewed, and potentially canceled. 

Our mission is to create a liquid, stable marketplace that mimics the public markets, as closely as reasonably possible. We’ll be thoughtful and active in enforcing any additional parameters, should the need arise.

What vendors/partners does Collectable use for the secondary market?

Collectable has partnered with Templum Markets LLC, a member of FINRA and SIPC and an SEC-registered broker dealer and Alternative Trading System (“ATS”). In addition, Templum Markets utilizes DriveWealth LLC as our custodian.

From what firm will client accounts be debited/credited?

All debits and credits back to your bank account will come from DriveWealth LLC.

Can users buy shares on margin?

No. Users will only be able to buy shares with the money that has been preloaded onto their wallet.

* Our secondary market will be conducted in partnership with Templum Markets LLC, a member of FINRA and SIPC, an SEC-registered broker dealer, and Alternative Trading System (“ATS”).

Investments in alternative assets are illiquid, speculative and loss of invested capital is possible.

Please review Templum Markets and Drivewealth legal documentation.