GXG Markets – GXG Listings 3 Tiers Explained for OTC, MTF, Regulated, and Bonds

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. (Ryan@ifxbg.com)

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. (Ryan@ifxbg.com)

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. (Ryan@ifxbg.com)

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, Ryan@ifxbg.com

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