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.

A three tier market solution

At GXG Markets we understand that in the SME sector, a one-size solution will not

necessarily serve the needs of the wide variety of companies looking to obtain a market

listing or quotation. As such we offer a choice of three markets:

GXG First Quote

GXG Main Quote

Official List