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Who Regulates Art Exchange?

January 10, 2011 by Marion Maneker

CNNInternational talks to Pierre Naquin and Caroline Matthews of A&F Markets about their new exchange:

Naquin places potential investors in two camps: financial professionals who want to diversify investments in a new asset; and entry-level collectors who haven’t been able to invest previously.

Art Exchange is also not regulated by Autorité des marchés financiers, France’s stock market regulators.

“At present there is no official authority for this sort of trading,” Matthews said. “We are obviously regulated in the sense that we are subjected to property laws, especially those regarding artworks.

“Moreover, as a question of security, we oblige ourselves to follow the same rules as other financial markets,” she added.

Modern art shares from $13 in new art stock exchange (CNN.com)

Art Exchange Opens in Paris

January 10, 2011 by Marion Maneker

A&F Markets’s Art Exchange opens today in Paris with a few more details on how the exchange will work. The company is offering fractional ownership of two works:

The very first works available will include a major piece, the sole trace of his performance at the Guggenheim museum in 2007, by Francesco Vezzoli – an internationally recognised Italian artist – The Premiere of a Play That Will Never Run, and a painting by Sol LeWitt – the father of conceptualism – Irregular Form. Vezzoli’s work will be introduced at an initial value of 135,000€ with shares available at 10€ (total of 13,500 shares). Irregular Form will be introduced at 110,000€ with shares worth 10€ (11,000 shares in all).

A&F Markets will organise viewing sessions for its clients in order to see these two artworks which are being sold by the international gallery Yvon Lambert in Paris. “Via Art Exchange, we hope to encourage people to become collectors,” added Olivier Belot, director of the gallery.

The idea behind the exchange is that each work is sold at a set share price of 10€ but subsequent trading will establish a higher or lower value for the work. It’s not entirely clear from the site how this trading will take place but we hope to get more details from Pierre Naquin next week.

Art Exchange

French Exchange to Try Fractional Art Ownership

January 3, 2011 by Marion Maneker

Art funds have had a hard time establishing themselves–though not for lack of trying–so a new bite at the apple is coming in the next few days from a French concern that calls itself Art & Finance Services. They will be operating an exchange that sells shares in works of art, according to WiredVC.com:

A&F Markets have planned a new, centralized and liquid marketplace for art. Through its unique structure, Art Exchange will allow investors to buy and sell ʻsharesʼ in major artworks. […]

Over the past ten years, various banks and institutions have attempted to make their mark in this area by setting up funds, often having disappointing results. The main obstacles are: exceedingly high prices for major works of art, limited pieces available, high handling fees – as well as a generally poor distribution of artworks.

Nonetheless – and interestingly for investors, art is an investment with a secure value in the long-term, whilst being the subject of much speculation and volatility in the short-term. There is thus an interesting security/profit ratio involved in this form of investment.

Art & Finance Services are therefore to offer a simple, clear and familiar model (an online exchange) through which other economic players can invest in art. Through the ‘joint ownership’ of the works, art becomes a liquid and accessible asset for everyone.

Art “Stock Exchange” set to open in Paris (WiredVC.com)

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