Partner with Us

For Retail Brokerages

Bring LEX Assets Into Your App

Earn New Revenue

Collect IPO placement fees (up to 400 bps) and trading fees (at your discretion) for supporting customer investments into LEX assets.

Stand Out From The Crowd

Offer a wider range of assets to distinguish your app from competitors. Be a leader in the shift from crypto to alternative assets.

Realize Better Margins

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.

Build Better Portfolios

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.

Why Promote Real Estate To Your Clients?

Benefits of Real Estate

Income

Real Estate generates distributions when tenants pay rent. Distributions are not guaranteed.

Diversification

Diversification beyond stocks, bonds, mutual funds, and ETFs.

Tax Advantages

Direct RE ownership affords clients tax advantages other vehicles simply do not. Additional details here.

Why Choose LEX's Approach To Real Estate Assets?

The LEX Approach Offers

CUSIPs & Custody

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.

Transparency

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.

Tax Advantages

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.

Passive Income

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.

Liquidity

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.

Institutional Sponsor

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).

Before We Begin Integrating...

What is a LEX Security?

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)

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.

Getting Started...

Integration Guide

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:

IPO - Primary Offering

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.

Secondary Trading

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.

Integration Guide

IPO - Primary Offering

Revenue: Placement Fees

Collect IPO placement fees (up to 400 bps) for supporting customer investment into LEX assets. This fee is negotiated per-deal.

CUSIPs & Qualified Offering Circulars

CUSIsS exist for a LEX Security before the offering begins. Each LEX asset has an SEC-qualified offering circular that can be reviewed and made available to your customers.

Displaying Underlying Asset Data

LEX provides APIs and embeddable HTML research reports on each asset, so providing "tear sheet" information to customers is easy. More details in API documentation below.

Subscription Process

Customers check a box or e-sign to confirm their subscription to the initial offering. Once IPO contingencies are met, shares are transferred via DTC to the clearing firm. If you have an existing IPO center, LEX offerings should fit right in.

Integration Guide

Secondary Trading

Symbol Support

LEX Securities are OTC Securities. Each asset has a real ticker symbol following their IPO. They trade throughout the broader OTC ecosystem, not behind a walled garden on a private ATS.

Stock Prices & Charts

LEX symbols likely already show up in your data provider of choice.

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 them.

Quote and L2 Order Book Feeds

To display best bid & ask or depth-of-book data for LEX Symbols, you have options:

LEX symbols are in the OTC Markets L1 & L2 feed (e.g., source 939 and 940 in ICE; carried similarly in other market data providers). This will reflect all orders & quotes on the OTC Markets ATSs. As of August 2022, bids and asks from LEX retail customers on the LEX ATS are not included in this feed, but we expect to display our customer bids & asks in this feed by the end of 2022.

LEX offers consolidated order book data for the LEX ATS and OTC Markets ATS via rest API in the documentation below.

Execute on OTC Markets ATS and/or LEX ATS

The majority of liquidity for LEX assets currently exists on the LEX ATS. The LEX ATS has the ability to execute against resting orders on the OTC Markets ATS, where most retail wholesalers will route an OTC order. LEX prefers partners send orders directly to the LEX ATS, but existing order routing flows are likely to work out of the box.

Routing Orders to LEX ATS via Instinet

LEX ATS is an Instinet "Certified Routing Destination" via their normalized FIX router. If you already use Instinet, routing to our ATS is as easy as signing a subscriber agreement and directing orders correctly.

Routing Orders to LEX ATS Directly

You can connect directly to the LEX ATS and use FIX or REST protocols to manage orders. Various networking connectivity options can connect your environment to the LEX ATS endpoints securely.

Last but not least..

Documentation

You can view API documentation and other guides here using the password provided by LEX.

FAQs

How will my customers receive distributions?

How can my customers earn money via LEX securities?

How are these investments taxed?

Do you have any live stock symbols we can check out?