ARTEX Q3 2024 Report

September 26, 2024

Welcome to the September 2024 edition of the ARTEX Newsletter! This month, we have thrilling updates for art enthusiasts and investors. We are excited to announce a major development that will resonate with our community. Delve into the latest insights on Francis Bacon’s iconic “Three Studies for Portrait of George Dyer” (1963), and seize the opportunity to view this masterpiece at the Nationalmusée um F?schmaart. We are also proud to unveil new strategic partnerships that will enhance our platform, and we’re gearing up for the upcoming listings pioneering “Art as an Asset Class”. Join us as we continue to bridge the worlds of art and finance, making art ownership more accessible and engaging for all.

Francis Bacon displayed at MNAHA for next 2 years

The Nationalmusée um F?schmaart is currently showcasing a landmark work by one of the most emblematic painters of the 20th century, Francis Bacon (1909-1992). Since July 1st, visitors have had the opportunity to view the renowned triptych “Three Studies for Portrait of George Dyer” (1963). This piece depicting George Dyer, Bacon’s lover and muse, was created just a few months after they met. On loan to the museum for two years, this masterpiece occupies a prominent place in the first room of their permanent exhibition, “Collections/Revelations”, which is dedicated specifically to portraits.

You can read the full report on Francis Bacon by ArtExplored here. This report provides a comprehensive analysis of Bacon’s market performance, artistic influence, and the enduring appeal of his works.

Happen to be in Luxembourg? To visit the Nationalmusée um F?schmaart, head to Marché-aux-Poissons in Luxembourg City. You can find more details and plan your visit on their official website.

Francis Bacon Trading Performance

Following the listing [1] of Art Share 002 S.A. ?on March 8, 2024, the owner of Francis Bacon’s "Three Studies for Portrait of George Dyer” (1963), the shares have consistently attracted interest, reaching over 200 trades by the end of August.

Performance of Francis Bacon’s "Three Studies for Portrait of George Dyer” (1963):

• Market Capitalisation: The market capitalisation has shown relative stability, with a slight overall increase of 1.52%, bringing the total market cap to €51,480,000.
• Closing Prices: Closing prices have experienced moderate fluctuation, starting at €92.20 in March and reaching €93.60 year-to-date (YTD)*.
• Trading Activity: While the number of trades varied, market engagement remained strong, indicating sustained interest from investors. March saw the highest trading volume and turnover, followed by a decline in the subsequent months. However, June experienced a significant rise in both volume and turnover compared to May, demonstrating continued investor activity.

For more information about trading, please visit the equities page on the ARTEX website here and on the Issuer, visit www.artshare002.com.

* Past performance is not indicative of future results.

Jargon Buster:

[1] Listing is where a seller agrees to directly sell the artwork to the buyer, in our case, the issuer, with no underwriting or pre-purchase required; the seller will enter into a vendor loan with the buyer to prepare for listing and shall receive the net proceeds following the offering period and the successful listing on ARTEX.

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Marco Strimer – New Board Member of ARTEX Global Markets AG

We are excited to share that Marco Strimer has joined the Board of Directors at ARTEX Global Markets! With an impressive career spanning nearly four decades in the financial services sector, including key leadership roles at LME Clear Ltd., Raiffeisen Schweiz, SIX, Safra Sarasin and UBS, Marco brings a wealth of expertise and a proven track record of strategic leadership. His extensive experience in securities and tax operations, financial infrastructures and international banking will be invaluable as we continue to drive our mission of art democratisation forward.

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ART Market Trends and Performance

Global Sales:

• The global art market experienced a slight slowdown, with sales decreasing by 4% year-on-year to approximately $65 billion. Despite this, sales remain higher than pre-pandemic levels.

Regional Highlights:

• China: Art sales in China increased by 9%, reaching $12.2 billion, making it the second-largest art market globally, surpassing the UK.
• United States: The US maintained its position as the largest art market, accounting for 42% of global sales, despite a 10% reduction in sales value.

Market Trends:

• Online Sales: There was a notable increase in online art sales, although the highest-priced deals still predominantly occurred offline.
• Cost-Cutting Measures: Many galleries implemented cost-cutting strategies, such as reducing participation in art fairs and cutting administrative expenses, to maintain profitability.
• Collector Behaviour: Collectors showed sustained interest, with stable or increased sales reported by most galleries. However, there was a trend towards offering larger discounts to attract buyers.

New Partnerships

The ARTEX community is expanding, already including members like CACEIS a subsidiary of Crédit Agricole SA, which enhance asset classes and connect issuers with investors. ARTEX’s unique MTF model offers unprecedented liquidity in art trading.

Strategic partnerships have also been formed. BMLL Technologies is a leading provider of harmonised historical market data and analytics. They specialise in Level 3 data, which captures the full depth of the order book, including every insert, modify, execute, or delete order message. This data is crucial for understanding market behavior and making informed trading decisions. Exactpro is an independent provider of AI-enabled software testing services, focusing on test automation for financial market infrastructures. Exactpro has improved the trading platform’s quality and reliability through comprehensive testing, leveraging AI to streamline processes and ensure robust quality validation.

These partnerships are driving innovation and expanding ARTEX’s reach, positioning it as a leader in democratising art ownership and creating an accessible market for all.

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CrowdStrike Outage and Operational Resilience

CrowdStrike, a leading cybersecurity company, is known for its advanced threat detection and prevention solutions. However, a recent issue with a faulty update to its Falcon Sensor software led to a significant global IT outage in July 2024, impacting millions of systems across various industries. In stark contrast, our trading venue experienced zero outages during this period, demonstrating the reliability and stability of its platform, ensuring uninterrupted service for investors.

ARTEX looks forward to the journey ahead and is grateful for the unwavering support of its stakeholders as it continues to grow and evolve. Stay connected for more updates, insights, and opportunities from ARTEX’s dynamic community.

Together, we can shape the future of art and finance.

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ARTEX Relationship Management Team

If you would like to learn more about ARTEX Global Markets and the opportunity to become a Member of our exchange, please feel free to contact our team.

Disclaimer

This newsletter is for information only. ARTEX Global Markets AG (“ARTEX GM”) attempts to ensure the information is accurate; however, it is provided “AS IS” and on an “AS AVAILABLE” basis and may not be accurate or up to date. No responsibility is accepted by or on behalf of ARTEX GM for any errors, omissions, or inaccurate information in this newsletter or for the results of any action taken based on the newsletter. Although we obtain information contained in our newsletter from sources we believe to be reliable, we cannot guarantee its accuracy. Any views or opinions expressed in the newsletter may not reflect those of ARTEX GM as a whole. The information in our newsletter may become outdated, and we have no obligation to update it. The information contained in this newsletter does not constitute professional, legal, regulatory, financial, or investment advice. No recommendation or advice is being given as to whether any investment is suitable for a particular investor or group of investors. Past performance is not indicative of future results. Investing in art involves risks, including partial or full loss of capital. Please consider your investment objectives and risk tolerance before investing.