Dutch bank ABN Amro has launched a trading infrastructure that will allow brokers to offer fractional trading for their investor clients.
This enables investors to buy part of a share, an ability that is expected to add liquidity and accessibility to illiquid and niche assets.
While fractional investing has been commonplace in the US, it is still relatively rare in Europe. However, according to ABN Amro Clearing’s chief executive Rutger Schellens, new technology is enabling more opportunities for customised investor services.
For example, tokenisation has been cited as a technology that allows fractional trading.
Dutch neobroker BUX is ABN Amro Clearing’s first client to take up the new service and has recorded more than ten thousand fractional investments in the first nine days since launching the service.
“The launch of fractional investing marks an important new chapter in the normalisation of investing in Europe,” said Yorick Naeff, chief executive at BUX.