Multi-asset online trading and investing company CMC Markets has launched new grey market pre-IPO trading capabilities, enabling clients to take positions on companies ahead of public listings.

The launch allows clients to trade before and during a company’s IPO process, on its potential share price movement after listing, through spread bets and contracts for difference (CFDs). Clients have the ability to take both long and short positions.

CMC’s new pre-IPO market launches initially with SpaceX, giving clients exposure to one of the world’s most closely watched private companies ahead of any potential listing activity. Additional pre-IPO names are expected to be added as market demand develops.

The move comes amid growing investor interest in accessing high-profile companies earlier in their lifecycle, particularly as retail participation in event-driven trading and IPO activity continues to increase globally.

Once a company is listed on a stock exchange and the shares start trading in the underlying market, the company rolls seamlessly into CMC’s listed share spread bet/CFD. The position continues and the client retains full control over when to close it.

The launch further expands CMC Markets’ multi-asset offering, broadening client access to IPO-related trading opportunities across its web and mobile platforms.

Vaughn Affonso, Co-Head of Dealing, CMC Markets, said:

“Grey market pre-IPO trading gives clients earlier access to some of the market’s most closely watched companies, before they officially list.

We are seeing growing demand for event-driven trading opportunities, particularly around high-profile private companies and anticipated IPO activity. Launching with SpaceX reflects that appetite and broadens the range of opportunities available to clients.”

Chris Cheverall, Head of UK, CMC Markets, commented:

“This launch reflects CMC Markets’ continued focus on expanding its multi-asset offering and broadening access to global market opportunities.

By expanding our grey market pre-IPO capabilities, we are providing clients with greater flexibility in how they access compelling equity themes ahead of listing, supported by CMC’s best-in-class platform and technology.”