PARIS & LONDON — ARTEX MTF AG (“ARTEX”) is pleased to announce that it has been granted a license to operate a Multilateral Trading Facility (MTF). ARTEX is a European Economic Area (EEA) domiciled company regulated by the Financial Market Authority (FMA) of Liechtenstein within the framework of the European Markets in Financial Instruments Directive (MiFID II).
At a time of elevated inflation, the global art market continues to expand and be sought after, as illustrated by record-breaking auction activity. Studies show art is a significant asset class (estimated at USD3.2tn) that is characterised by low volatility and strong returns over the long term, while being uncorrelated to more traditional equity and bond markets. As a result, heightened accessibility should bolster the attractiveness of art as an investable asset class.
By becoming the world’s first art shares exchange, ARTEX will offer millions the opportunity to invest and trade in a new alternative asset class. Dedicated market makers will stream real-time liquidity, within a tight spread, and in a frictionless manner. The license also enables ARTEX to onboard financial institutions seeking to become members of the exchange, in order to extend to their clients secure access to the highly anticipated first listing of an iconic masterpiece in the coming weeks. ARTEX aims to list more than EUR 1bn worth of artworks in the coming quarters.
ARTEX will initially focus on artworks from the world’s greatest masters, spanning a period from the Renaissance to the twentieth century. Each artwork will be held by a public limited company established in Luxembourg, whose shares will be admitted to trading on ARTEX through an initial public offering (IPO). Shareholders will not bear any of the running costs, such as those associated with the administration of the company, the custody of the artwork or insurance premiums. The resulting art shares will be in the form of standardised transferable securities, like any equity shares listed on a stock exchange.
ARTEX aims to democratise the fine art market, making it inclusive and accessible. Art shares are expected to have an initial nominal value of EUR 100, enabling millions to invest in some of the greatest artworks ever created. In addition, ARTEX-listed masterpieces will be on public display, in museums and exhibitions around the world. Finally, ARTEX will strive to empower investors by offering the latest news, market insights and educational content, levelling the playing field in art investing.
ARTEX has secured partnerships with well-established stock exchange infrastructure services providers to ensure a seamless trading experience and a robust trading platform. SIX will provide services relating to clearing and settlement services as well as market data feed. Bloomberg will provide market participants with its proven order management as well as risk and portfolio management systems. UnaVista, an LSEG business, will support ARTEX in fulfilling its information exchange and reporting with the relevant supervisory bodies.
Rothschild & Co is acting as financial advisor to ARTEX in relation to the IPOs of the artworks.
The complete list of financial institutions that are members of the exchange will be published on www.artex.io ahead of unveiling the first artwork to be listed.
H.S.H. Prince Wenceslas of Liechtenstein, ARTEX Co-Founder and Chairman commented: “From the start of our journey, we wanted ARTEX to be a fair and transparent marketplace where some of the greatest artworks ever created could be traded, not only for art collectors and merchants, but also for investors, anyone who is either passionate about art for its aesthetic and emotional value or interested in art as a compelling investment and/or portfolio diversification tool. Operating a trading venue under one of the most demanding regulatory frameworks in the world brings a high level of confidence that has been crucial to the success of our project. We look forward to the first listings and trading on ARTEX in the coming weeks.”
Yassir Benjelloun-Touimi, ARTEX Co-Founder and Chief Executive Officer commented: “We have been relentlessly working on the launch of ARTEX for three years now. I am thrilled that our vision of democratising iconic art investment is finally becoming a reality with the obtention of a license to operate what is to be the world’s first art shares exchange. ARTEX represents the alchemy of two worlds dear to my heart, art and finance. It is undoubtedly the most important opportunity in my life to make a far reaching positive social impact, allowing a new breed of art patrons, strong by millions, to not only invest in art but be invested in art itself. As we near our first listing and plan for many more in the future, I would like to thank our dedicated teams and committed partners, including SIX, Bloomberg and LSEG.”
Jos Dijsselhof, SIX CEO commented: “We are pleased to provide our reliable Clearing and Settlement services and Market Data Feed to ARTEX’s innovative MTF to democratise investment opportunities in timeless assets in order to reshape the art landscape. This is a further step in SIX’s commitment to innovation and we are proud to be part of it.”