A new Scandinavia-based stock exchange, planned for launch in Q2 2011, will target British companies, who wish to attract European capital, for listing.
UK-based broking firm Merchant House, has signed an agreement with GXG Markets, the Danish regulated market focusing on small and medium enterprises (SMEs), to launch the platform, which would provisionally be called GXG Markets UK.
Buy-side firms will access the liquidity in listed firms through a GXG-approved list of UK stockbrokers and trades will be cleared through central securities depository Euroclear.
Carl Johan Hogbom, GXG Markets' chairman, said that GXG intended to provide British SMEs a “very competitive” alternative to the traditional British exchanges, and stated that there is ample room for a European exchange that targets SMEs.
As well as attracting British SMEs to its market, GXG Markets is hoping that other companies listed on its platform will be able to attract inward investment from UK-based private investors and institutions.
Current active members of GXG Markets include regional institutions such as Danske Bank, Handelsbanken, SEB Group and Dutch bank ABN Amro.
“We have been looking to expand into other European markets to create a pan-European marketplace for SMEs and alternative investments and we will be making an excellent start in the most important European market through our partnership with Merchant House Group,” said Michael Rosenberg, chief executive of GXG Global Exchange Group, the operator of GXG Markets.
Merchant House Group is a holding company whose main subsidiary, Merchant Capital, is a corporate finance, investment advisory and stockbroking firm concentrating on small- and medium-sized companies.
Although plans have not yet been finalised, GXG is also considering implementing a model under which all trades conducted on the platform will not have to go through market makers – a move that would differentiate the venue from competitors such as retail-focused exchange group PLUS Markets, according to a GXG spokesman.
The firms are aiming for a launch in the first half of May.