SS Secondary Market

There won't be a facility to de-list a loan part, as a percentage of the loan part may have already been sold.

I can confirm parts will be sold with a FIFO policy. So if seller A sells a loan part for £1k in a loan and then seller B sells a loan part for £1k in the same loan. Seller A will receive the first £1k of investment in the £2k availability of this loan before seller B receives their capital return.

Or delist the part remaining?

The obvious fear here is that of having a loan part languishing on the SM neither selling nor earning interest. If a de-listing facility is out of the question, then another way of mitigating this may be to allow the selling of a specified sum rather than the whole part. For instance, I have a £1000 part in Property BL3 which I may be reluctant to place on the SM, because of the attendant risk, but if I could test the water with smaller chunks? Otherwise we're going to have this habit, seen on other platforms, of people putting a hundred £10 bids on a loan rather than a single £1000 bid, just to keep their SM options open. Whatever, I think SS needs to find some way of reducing the risk for sellers, if the SM is to be vibrant.

Not wanting to throw names around but AC are able to calculate interest to the day a loan part was sold both for seller & buyer. Also, the facility of delisting a loan part is available. It would be a shame not to have these options available on SS considering that myself & others are starting to take positions on the platform & accumulating parts in your recent & upcoming loans.

For me, the above would be a major factor in not investing on savingstream & pulling my money out...sorry!!

Following pepperpot 's comment, why not use the same facility as Funding Knight. There, f I have £1000 part, I can decide to sell £10 of it, or £50, or even £157.48 if I so decide. That way, a part seller can stagger the sales so that the last bit earns interest for longer ....or just sell the whole lot in £50 hunks which might might result in a quicker sale than a single £1000.

Isn't this the way it works now?  I have invested in some boat loans a bit at a time, and my dashboard lists each part separately.  So I presume that when the secondary market arrives I'll be able to sell the individual parts.

Presuming that continues, lenders' reaction to the new SM will be to make a lot of £100 investments rather than fewer larger ones.  As long as the SS system can cope with the increased number of parts, that would solve the problem going forward except for the largest lenders who might not wish to go through the awkwardness of, say, making 200 investments in order to lend £20k.  A better solution would be for SS to accept larger investments but break them down into £100 chunks, either at the time of investment or when a lender wishes to make a sale.

As for the issue of de-listing...  Could this be solved by a lender buying back their own parts?  (Buying some other lenders' parts if their parts aren't at the front of the queue wouldn't help, since additional cash would be required and interest on the listed parts would continue to be lost.)  That doesn't solve the issue of interest lost while a part is listed for sale, but would allow lenders to change their minds.

£20 bids aren't a worry -- the SS minimum bid is £100.  But you're right about long dashboards.  I have one of those, because of my multiple bids on various loans.  I thought about minimising my number of bids when I saw that happening but, in fact, I didn't.  And now I'm glad I didn't!  A more elegant solution would be nice, but it's probably not critical.  Until then, if lenders switched to £100 bids then the problem would be minimal for future loans.  And six months from now there will be no current loans left.

On balance, though, if the AC SM is anything to go by, the issue of lost interest while parts for sale are awaiting buyers will turn out to be a red herring.  On the AC SM, with the exception of loans where underwriters have tens of thousands of pounds of parts to sell, any loan parts offered for sale generally are bought within minutes.  If AC had the same policy regarding accrued interest as SS have proposed, sellers losing more than one day's interest would be a rarity.  So my view would be that SS won't have a problem that needs fixing except for lenders who have parts denominated in thousands of pounds.

For now, I would suggest that the SS SM starts up as proposed, while we and SS watch what actually happens, and we can see whether or not there's really a problem before anyone spends much time trying to design a fix.