Collect IPO placement fees (up to 250 bps) and trading fees (at your discretion) for supporting customer investments into LEX assets.
Offer a wider range of assets to distinguish your app from competitors. Be a leader in the shift from crypto to alternative assets.
Amidst the race to the bottom that traditional stock trading margins have experienced, alternatives present new, higher revenue-per-user opportunities, like many brokerages have already seen with crypto.
The average retail investor is underexposed to real estate and other alternative assets. Be the one-stop-shop for your customers to build a more balanced portfolio, and grow your assets per customer while you're at it.
Real Estate generates distributions when tenants pay rent. Distributions are not guaranteed.
Diversification beyond stocks, bonds, mutual funds, and ETFs.
Direct RE ownership affords clients tax advantages other vehicles simply do not. Additional details here.
Keep your clients’ assets at your existing custodian. All LEX offerings are DTC-eligible securities that are assigned a ticker symbol and CUSIP number upon their IPO. LEX securities are already held at Schwab, Merrill Lynch, Fidelity, Apex Clearing, and others.
See the tenants, loan information, and other details of each building. Know exactly what your clients are investing in, with a far greater level of asset-level information than any other tradable real estate investment.
LEX securities are structured as Publicly Traded Partnership (PTP) Interests. This allows many of the tax benefits of direct commercial real estate ownership to pass through to investors. Investors will receive a K-1 at the end of the year.
Offer clients a means to earn passive income via a yield-focused equity investment. LEX securities are expected to generate quarterly distributions quarterly as the tenants of the buildings pay rent. Distributions are not guaranteed, but sponsors are required to pay distributions to shareholders pro-rata if they take distributions themselves.
LEX securities trade on the LEX ATS and OTC Markets’ ATS. Liquidity is not guaranteed. The equity shares held by your clients will be trading and consistently priced on the secondary market. If an asset sells, shareholders receive their share of the proceeds as a cash distribution. Returns are not guaranteed.
In LEX offerings, the original sponsor of the building retains substantial equity, so their interests are aligned with the investor's. The sponsor retains control to operate the building as they know the asset best, while investors are offered various shareholder protections (e.g. inflated management fees or an insider sale).
Currently, LEX is focused on single-asset commercial real estate securities. Each security represents a publicly-tradable equity partnership interest in an individual commercial real estate asset. We allow the GP to continue to operate their asset while providing a liquidity solution for a portion of the LPs' or GP's stake. LEX is planning to launch more alternative asset classes in the near future such as fractional sports team equity stakes.
LEX Securities:
- Are DTC-eligible
- Have CUSIP numbers
- Have ticker symbols following the IPO
- Can be held at any DTC participant custodian, including Schwab, Merrill Lynch, Fidelity, and TD
- Are publicly tradable with no lockups or restrictions
- Settle via NSCC’s Continuous Net Settlement (CNS) process
- Are non-exchange-listed or OTC securities, so they trade on the LEX ATS and OTC Markets ATS
- Are sold at IPO via registered offering or Reg A Tier II exemption
- Have SEC-qualified offering circulars (Form S-11 or 1-A)
- File semi-annual or quarterly periodic reports on Edgar
- Pay distributions quarterly (unless earnings are retained in special circumstances)
- Are piggyback-eligible, meaning market makers can rely on LEX's Form 211 filings to post quotes without filing their own Form 211
Existing Symbols
LEX has two symbols actively trading: TESLU and GWYGU
These symbols can be looked up in your app and data feeds to spot-check what data you are receiving for the tickers and whether they are in your security master.
There are two core integrations for LEX assets, which can be built and launched separately. We recommend integrating both in parallel, as each supports the other. Each is covered in more detail below:
Let clients participate in the primary offering via "IPO Access". Requires building or integrating with a subscription flow, querying and rendering asset meta data, communicating allocations to LEX and closing mechanics.
Let clients trade shares of LEX assets on the secondary market via the LEX ATS. Requires market data feeds, support for a limited set of OTC symbols, and order management connectivity (REST or FIX) to the LEX ATS.
You can view API documentation and other guides here using the password provided by LEX.