Secondary market liquidity: what can be planned vs promised
Liquidity is venue-, structure-, and jurisdiction-dependent. How to avoid overpromising while staying credible.
Liquidity is not a feature you can ship. It’s an outcome that depends on structure, venue access, approvals, and demand.
Separate liquidity design from liquidity guarantees
You can design for transferability and operational readiness. You cannot guarantee secondary demand or venue listings.
Credibility comes from being precise about what is controllable.
Structure determines transfer constraints
Transfer restrictions, investor eligibility, lockups, and settlement requirements depend on the instrument and jurisdiction.
These constraints must be defined before talking about secondary pathways.
Plan realistic venues and pathways
If secondary trading is part of the strategy, map plausible venues and compliance requirements early.
Set expectations around timelines, approvals, and readiness criteria.
Plan the pathway, don’t promise the outcome. Precision wins trust.