LeapRate Exclusive... LeapRate has learned that UK spreadbetting leader IG.com has quietly launched greymarket trading in shares of Twitter. Those traders who do not want to wait for Twitter's actual IPO, recently announced and planned for later in Q4, can already take a position in what Twitter's ultimate IPO valuation will be.
So what do investors actually think Twitter will be worth? Based on a current price spread of 110/115 at IG, traders are betting that Twitter's valuation will be in the $11.0 to $11.5 billion range once all is said and done.
IG joins smaller rival ETX Capital in making a greymarket in Twitter.
What is greymarket trading? Generally, a greymarket is the trade of a security or commodity through channels which, while legal, are unofficial and unauthorized. In our case, it is the trading in the shares of a private company such as Twitter, leading up to the time Twitter actually goes public. There are also greymarkets set up for trading things which are normally hard to value or dispose of, such as frequent flyer miles.