P2P lending marketplace Prosper today informed investors via email, that it will close down the secondary market, effective October 27th. Prosper does not operate the secondary market itself, but uses FolioFn, operated and maintained by FOLIOfn Investments, Inc., a registered broker-dealer.
More details in Propser closes secondary market.
I highlight this:
“On all European marketplaces that have a secondary market, it is fully integrated into the platform and not provided by a third party. Prosper and Lending Club are therefore an anomaly in this regard, again caused by regulation. My subjective estimate is that on European marketplaces on average about 20-30% of investors use the secondary marketplace function.”
In the meantime, the UK is moving ahead http://genome.dailyfintech.com/t/a-fixed-income-alternative-p2p-lending-and-wealth-management-in-the-uk/488/1; right @OrcaJord?