Archive for May, 2012

Tuesday, May 29, 2012 @ 09:05 AM
posted by admin

There are many reasons why the GXG Markets within the UK have the advantage of the Frankfurt Stock Exchange to become the new World Stock Exchange and global OTC market for firms.
With the closure of the Frankfurt Stock Exchange open markets there is no longer a real OTC market in Frankfurt. Start-up firms and firms searching for liquidity in Europe once went to the Frankfurt Open Market, listed on the Frankfurt Stock Exchange or bought a Frankfurt Listed Shell for sale, and made a market raising funds for their firm.
The exchange rules changed, and not only did the open market get taken away, but a new toxic regulation enforced by the Frankfurt Stock Exchange for volume trading.
Basically BAFIN and the Frankfurt Stock Exchange agreed on the requirement of constant trading requirements on the Frankfurt Stock Exchange, however, the market maker is responsible. Thus, by making the market makers responsible for the bid and ask, every time the market maker puts up a BID that an investor hits, the market maker goes into debt. Every market maker then signs and agreement for the company to pay this debt. Thus, the Frankfurt Stock Exchange has made a toxic trading cycle of which “Frankfurt listed companies” need to buy back the shares from the market maker. Thus, companies end up buying back all of their shareholders shares.
For most markets, such as the UK, a UK listed firm on the Frankfurt Stock Exchange who has to pay the market maker for the shares would in most cases have to make a tender offer to all shareholders of the company at the same price. Basically, the Frankfurt Stock Exchange and its market makers have formed a jurisdictionally “grey area” which is not really in compliance with the jurisdictions of the companies that are listed on their exchange.
Regardless of the legality, the companies take on the debt of buying back shareholders shares on the Frankfurt Stock Exchange. Listing on the Frankfurt Stock Exchange simply is just not worth the risk to companies to do. Companies need to seek alternative stock markets, such as the GXG Markets in the UK.
For Frankfurt Listed firms, they have the deadline of July 1st to apply to the entry standard without a prospectus, and December to build a prospectus and meet the Frankfurt Entry Standard’s requirements. My advice to companies, is list your firm on the GXG markets while you still can before you become knocked off the Frankfurt markets and are no longer public. If you want to stay a public company, move to the GXG Markets.
Who is the best Broker Sponsor for the GXG Markets?
One of the Frankfurt and Berlin listings specialists IFXBG Limited ( can help move your firm from the Frankfurt Stock Exchange and Berlin Stock Exchange to the GXG OTC Markets ( Contact
This article has been written and published by FSE Listings Inc, The Frankfurt Stock Exchange Listings professionals.