GXG Markets – GXG Listings 3 Tiers
GXG Markets is a European Regulated Market which operate a securities market focusing on SME companies by operating a three-tier market structure with an OTC segment (an information and trading platform for professional investors), a MTF (Multilateral Trading Facility) and a Regulated market.
GXG Markets just recently passported its exchange license to the United Kingdom, under the MiFID directive (Markets in Financial Instruments Directive) and has assumed business in Britain.
GXG Markets utilises its parent company’s, GXG Global Exchange Group’s proprietary electronic trading platform, GXG Tellus. The GXG Markets have two kinds of listing partners. The Corporate Advisors and the Broker Dealers. A Corporate Advisor is limited to listing firms only on the OTC Market, an official Broker Dealer can list firms on the OTC, MTF, and Regulated Board. A GXG Broker Dealer also can set-up trading accounts, trade and clear shares or debt of the exchange on the MTF and Regulated Markets. (Reference: http://en.wikipedia.org/wiki/GXG_Markets)
IFXBG Limited is an official broker dealer of the GXG Markets. (http://www.ifxbg.com)
The Admissions process for the three tiers include the following in order from the OTC, MTF, to Regulated Markets.
OTC Markets
Supervision
Trading on OTC Markets is carried out as matched bargains between brokers. These brokers are under supervision by their national FSA, whereas there are very few rules for companies on OTC Markets.
Management
No rules.
Number of Shareholders
No rules.
Prospectus/Memorandum/Background Info
A quite simple background information on the company must be available, including access to the last three annual reports if such exists Market is combined with a fund raising, a prospectus/ public offer document / private placing document must be prepared.
Share Status
No rules, but registration at a central securities depository is recommended.
Age of Company
No Rules.
Size of Company
No Rules.
Accounting Standards
Going public on the GXG OTC Market does not require any change in the company’s accounting standards, unless defined otherwise in specific legislation.
Rules of Disclosure
No Rules.
Trading System
Trading on the GXG OTC is done in the trading system GXG Tellus settled via broker to broker residual settlement
Timeline
Provided no public offering is made in connection with listing, the time from decision on listing to actual listing can be estimated to 1-3 weeks.
IFXBG can list your firm in 1-3 weeks onto the OTC markets and provide market trading as well as listing. Contact us for a quote. ([email protected])
GXG MTF
Supervision
GXG MTF is not directly supervised by the Danish FSA. The operator of GXG MTF – namely GXG Markets A/S – is under the supervision of the Danish FSA.
Management
No rules.
The company’s management must be approved by GXG MTF.
The company must pay attention to the fact that being listed on GXG MTF requires human resources to comply with the rules of disclosure.
Number of Shareholders
No rules, but the company must have an ambition of increasing the number of shareholders as a consequence of the listing
Prospectus/Memorandum/Background Info
A memorandum with basic information on the company must be prepared, including access to the last three annual reports, if such exist. If the listing on GXG MTF is combined with a public offering, a prospectus / public offer document must be prepared.
Share Status
Shares must be registered with a central securities depository.
Age of Company
No Rules.
Size of Company
Market cap EUR 1 million. Exemptions from this requirement can be made.
Accounting Standards
Listing on GXG MTF does not require any change in the company’s accounting standards, unless defined otherwise in specific legislation.
Rules of Disclosure
GXG MTF defines rules of disclosure in the GXG MTF Rule book. The rules are less strict than rules on GXG Markets.
Pension Funds (Danish Investors)
GXG MTF defines rules of disclosure in the GXG MTF Rule book. The rules are less strict than rules on GXG Markets.
Trading System
Trading on GXG MTF is done in the trading system GXG Tellus – settled via Euroclear/CREST.
Timeline
Provided no public offering is made in connection with listing, the time from decision on listing to actual listing can be estimated to 1-3 weeks.
IFXBG can list your firm in 1-3 weeks onto the MTF markets and provide market trading as well as listing. Contact us for a quote. ([email protected])
GXG Markets Regulated Market
Supervision
GXG Markets is a European regulated market, and as such under the supervision of the Danish FSA
Management
The company’s management must be approved by GXG Markets’ listing committee.
The company must have an adequate organization to handle financial management and rules of disclosure.
Number of Shareholders
No rules, but the company must have an ambition of increasing the number of shareholders as a consequence of the listing
Prospectus/Memorandum/Background Info
By law, a prospectus must always be prepared for a listing on a regulated market.
The prospectus must be approved by the Danish FSA.
Share Status
Shares must be registered with a central securities depository.
Age of Company
The company must have existed in at least 3 fiscal years. Exemptions from this requirement can be made.
Size of Company
Market cap EUR 7-70 million. Exemptions from this requirement can be made.
Accounting Standards
IFRS
Rules of Disclosure
Companies on GXG Markets (a European regulated market) must comply with the European legislation regarding disclosure of information to the market. The rule book of GXG Markets does not go any further than the European legislation.
Pension Funds (Danish Investors)
Companies on GXG Markets (a European regulated market) must comply with the European legislation regarding disclosure of information to the market. The rule book of GXG Markets does not go any further than the European legislation.
Trading System
Trading on GXG Regulated is done in the trading system GXG Tellus – settled via Euroclear/CREST
Timeline
Preparing a prospectus takes about 3 months, including the time the Danish FSA needs to approval of the prospectus. Other activities needed in regard to the listing can be done in parallel, hence the time from decision on listing to actual listing can be estimated to about 3 months.
IFXBG can list your firm in 3 months onto the Regulated markets and provide market trading as well as listing. Contact us for a quote. ([email protected])
Bond Formation and Listing of Debts
As a registered broker dealer, IFXBG Limited is also capable of listing bonds, debts, and securities onto the GXG MTF market, including international trading and settlement across Europe using IFXBG’s Clearing and Settlement platform. If you are interested in raising capital and listing bonds, contact us for a quote, [email protected]