GXG Markets UK
We are the exclusive US representatives for The QURO TRUST which is both a registered GXG Broker and a registered Corporate Advisor. As such QURO can help you place trades for GXG and other exchange stocks as well as guide you through the listing process.
GXG Markets – Dedicated to helping companies grow
GXG Markets is a regulated European market focusing on small and medium-sized businesses and investment companies.
GXG Markets is a Danish legal entity duly authorized by Finanstilsynet, the Danish Financial Supervisory Authority. GXG firmly believes in the potential of smaller companies and want nothing more than to help them grow. GXG would even go so far as to say that smaller companies are the future – the way out of poverty and the road to prosperity.
GXG Markets offers a transparent, global marketplace, attractive for honest companies and investors, where small and medium-sized companies can find necessary capital in order to grow. Some will even outgrow GXG, and head for NASDAQ, the London Stock Exchange or other national arenas. Others will choose to stay with GXG, because here they get an opportunity to shine, instead of fighting to be noticed next to global industries in vast arenas.
GXG Markets is built on good intentions and designed to turn those intentions into good money for everyone who is interested in the future of small and medium-sized companies.
GXG Markets has a team that is dedicated to supporting small to medium sized enterprises (SMEs) and have established a market offering that has been designed to provide SMEs with a market quotation without overburdening them with excessive cost or bureaucracy.
GXG has a number of different brokers and advisors as well as associations with specialist Business Angel Networks who specialise in fund raising for SMEs.
GXG believe that transparency is to the benefit of both investors as well as quoted companies.
Intention and background
GXG Markets is a European Regulated Market originally established in 1998. The company was the first to be approved by the Danish Financial Supervisory Authority to operate an authorised marketplace.
Our objective has always been to operate a securities market assisting small and medium-sized companies and since its inception, over €230m worth of shares have been traded through this market and over €70m has been raised from some 30 separate placings.
In August 2010 the Company was acquired by Swedish based GXG Global Exchange Group AB. The purchase of the marketplace was the first step in GXG’s European expansion strategy. After implementing GXG Group’s robust electronic trading platform, GXG Tellus, the name of the company was changed to GXG Markets. The name change was made to better illustrate the influence of the new forward-looking ownership and the group’s international ambitions.
Listed companies
Historically, the companies admitted to trading at GXG Markets have been a mix of mature, well-respected business enterprises with a long history and a number of young investment companies that have become known to the general public in connection with their admission to trading.
The market cap of a new company for initial public offering typically ranges from €5-50 million. They operate soundly and have clear ambitions of growth and development, so that the company may in the long term obtain a market value substantially above the initial public offering value.
How to join GXG
GXG Markets’ goal is to help SMEs in growing their business. Each market has been designed to assist SMEs in their different phases of growth.
Companies looking to have their shares or securities admitted a GXG Market must first decide which market is right for their business, the benefits of each market are listed below. Companies looking to obtain a GXG Markets quotation should contact us.
The three different GXG Markets are:
- GXG Regulated Market (2013 – GXG Official List Regulated Market)
- GXG MTF (2013 – GXG Main Quote)
- GXG OTC (2013 – GXG First Quote)
Benefits to joining the OTC (GXG First Quote)
The OTC has been designed to assist companies that are looking to undertake or have just completed a fund raising via a private placing. The OTC provides companies with the ability to have their shares traded and establish a subsequent market capitalisation without have to incur the expense involved in being a publically quoted company. Often companies, on completion of a fund raising, are pushed into the public domain of a market prematurely without having established a strong revenue generating model. Without the ability to produce profits share prices will often suffer which can subsequently reduce the ability to raise future expansion capital.
On the OTC, the information about your company and its share price is restricted to your professional and sophisticated investors who have a better understanding of these problems faced by SMEs. Existing shareholders in each company are also able to access this information.
The GXG OTC has been established to provide an environment whereby companies do not have to be a public limited company, and has rules that are far less onerous meaning that more of your time is spent running your business and less time tied up in red tape adhering to market rules.
Benefits to joining the MTF (GXG Main Quote)
GXG’s Multilateral Trading Facility provides companies with a cost effective public quote that has rules that are less onerous than the GXG Regulated Market as the admission process does not require the issuing of a prospectus. Companies looking to join the MTF must have a market capitalisation of at least £1m at the time of admission and will need to appoint a corporate adviser. A list of approved advisers can be found to the right of this page.
An additional benefit is that stockbrokers, where their regulatory permissions allow, can advise/recommend stocks on the MTF to their clients.
Benefits to joining the Regulated Market (GXG Official List)
Companies looking to join the GXG Regulated Market will need to produce a prospectus that will need to be submitted to GXG a minimum of 30 days prior to listing. Additionally companies joining will have to adhere to IFRS accounting standards. The Regulated Market does have higher levels of rules and regulations than the OTC or MTF.
However, being on a Regulated Market means that your company is more likely to benefit from institutional investment and also from private investors who run self-administered pension funds as their rules often preclude investments outside Regulated Markets. Companies looking to join the Regulated Market must have a market capitalisation of at least £5m as at the time of admission and will need to appoint a corporate adviser, a list of advisers can be found to the right of this page. Regulated Market listings qualify for dual listing on other European Exchanges including Berlin and Frankfurt Stock Exchanges.
The Regulated Market offers live trading in securities quoted on the market but does not offer an auction based trading facility.
GXG Markets – a better way to trade SMEs
GXG’s market solution has been specifically designed to provide Small to Medium Enterprises (SMEs) with a more competitive market quotation that utilises proven and robust trading systems.
The traditional small-cap market practice of enforcing large bid/offer spreads disadvantages both buyer and seller. GXG Markets, however, offers the ability to trade shares in SME’s directly as matched bargains without the need for market makers setting the price of transactions. This provides the market place with greater transparency and faster transaction reporting.
GXG’s market solution offers a simpler and more cost effective route for companies to achieve a market quotation and offers a range of different market solutions from an Over-the-counter (OTC) market, a Multi-lateral Trading Facility (MTF), through to a full European Regulated Market.
Each market option offers real time live trading of shares or, for smaller less liquid shares, a regular auction based trading platform. Both of these options provide trading that is concluded on a matched bargain basis which effectively removes the spread between the price a buyer pays and the seller receives. The removal of bid/offer spreads is important because the only factors affecting the price of a trade should be the price at which someone is prepared to sell and the price at which someone is prepared to buy.
By introducing a system that allows buyers and sellers to place bids and offers to match existing bids or offers creates far greater transparency whilst at the same time it eliminates what can often prove to be excessive bid/offer spreads set by market makers. A good example of excessive market makers’ spreads would be a share whose price at 55p represents good value. As an investor wanting to buy this stock through a market maker you could end up paying 60p per share but as a seller you might only receive 50p. The effect this has is that the sale price would have to increase by 20% just so an investor could sell at the price at which he/she bought at. Clearly such a system does not represent a fair trading basis.
The GXG market model works in a far more equitable way so that the buyer and seller transact at the same price with no institutional middle-man taking a slice out of your investment on the way in and the way out.
GXG operates a Regulated Market that is authorised and regulated under the same EU legislation as all existing UK and European Regulated Markets. This means that UK investors enjoy the same protection with GXG as they would with any other British or European Stock Market.
MARKET |
Regulated Market
(Official List) |
MTF
(Main Quote) |
OTC
(First Quote) |
Matched Bargain Trading |
Yes |
Yes |
Yes |
Real-Time Live Trading |
Yes |
Yes |
Yes |
Auction Based Trading |
No |
Yes |
Yes |
Prospectus Required |
Yes |
No |
No |
Settlement Via EuroClear/Crest |
Yes |
Yes |
No |
Access To IPO Centre For Fund Raising |
Yes |
Yes |
Yes |
Email News Alert Service |
Yes |
Yes |
Yes |
Minimum Market Capitalisation |
£5M |
£1M |
None |
Requirement to be a PLC at Admission |
No |
No |
No |
Additional Take Over Rules |
No |
No |
No |
SPACs & CASH SHELLS allowed |
Yes |
Yes |
Yes |
Minimum Shareholders |
None |
None |
None |
Audited Financials |
Yes – IFRA -2 years |
Yes IFRA – 2 years |
No |
Private Companies Allowed |
No |
No |
Yes |
Age Requirements |
3 Years |
None |
None |
Trading System |
GXG Tellus |
GXG Tellus |
GXG Tellus |
Settlement |
Euroclear/Crest |
Euroclear/Crest |
Broker to Broker |
Time To List* |
28 days |
14 days |
14 days |
Dual Listing |
Yes |
Yes |
Yes |
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