GXG Markets

Total Capital Solutions LTD has been helping small and medium-sized enterprises (SMEs) all around the world to raise capital for business since 2005. Total Capital Solutions LTD realises the importance of SMEs as the backbone of the economy of any country, and the newly formed GXG Markets based in the U.K. provides a liquid, dedicated trading market for SMEs.

While other stock exchanges focus on middle to large cap corporations, GXG sets itself apart by designing a sustainable capital market to provide SMEs with a more competitive market quotation using robust trading system. In traditional exchanges, market makers usually enforce large bid/offer spreads, which create disadvantages to both sellers and buyers. GXG allows market players to trade SMEs’ shares directly as matched bargains without market makers having to set the price. Because of the matching bargain system, GXG Markets is more transparent and quicker in reporting transaction.

GXG Trading Schematic

GXG’s Transparent Trading Model

Unlike other exchanges that are targeting large trading volume, GXG is designed to create a sustainable capital market where SMEs can trade regardless of size. This is a very important point for Total Capital Solutions LTD when choosing to list SMEs on GXG; we share the same view.

GXG’s market solution is designed to provide a simpler, cost effective process for SMEs to raise money through IPO. There are three different market tiers on GXG Markets, they are Over-the-Counter (OTC) market, Multi-lateral Trading Facility (MTF), and a full Regulated Market. Each tier offers real-time live shares trading or a regular auction based trading platform for smaller less liquid shares. Both trades were a result of a matched bargain process, which removes the spread between the buy price and the sell prices.

GXG’s goal is to create a simple, straightforward, and cost effective admission process. Prospectus is not necessary unless you are joining GXG’s Regulated Market or raising more than €2.5 million. GXG only requires your company to be a public limited company to enjoy the opportunity of trading on GXG Markets.

Regulation
GXG’s Regulated Market is under the same EU legislation as all existing UK and European Regulated Markets. Investors enjoy the same protection with GXG as they would with any other British and European Stock Market. All trades are placed through the market via FSA authorized and regulated stockbrokers. All trades are cleared and settled via Euroclear/Crest, just like in any other exchange.

Three Tiers of The GXG Markets
There are three tiers or segments on GXG Markets to cater to the different needs of SMEs looking to raise capital. They are:
• Regulated Market
• Multilateral Trading Facility (MTF)
• OTC

The transactions on these three markets are concluded with a real time live trading or an auction based trading facility (auction based trading is not available on the GXG Regulated Market).

Auction Based Trading is a sample of GXG’s trading uniqueness. Some companies may only want a mechanism for employees to get value from a share incentive benefit. This is also a good method for companies who are looking to have their shares traded on an infrequent basis.

Real Time Live Trading is for companies who want their shares to be traded more frequently. This system allows brokers to place orders to buy and sell shares. The uniqueness of this system lies on the ability to match transactions as bargains where the trading software arranges for transactions to be sent for settlement through Euroclear/Crest. Because it is a live trading, the market price displayed is always the last traded price, but investors can also see the best five bids and offers currently available.

GXG Regulated Market
Companies looking to join this segment of GXG will need to submit a prospectus with a minimum deadline of 30 days prior to listing. They also need to adhere to IFRS accounting standards. Being on the Regulated Market, companies must comply with higher levels of rules and regulations. However, companies traded on Regulated Market will benefit from institutional investors and private investors.

GXG MTF
GXG MTF operates via the same trading platform as the Regulated Market but companies listed here do not have to adhere to IFRS accounting standards or submit a prospectus. Companies should be a PLC with a market capitalization of at least ₤1 million at the time of joining MTF. Companies do not need to submit prospectus. MTF offers a public market quote and thus the companies traded on this segment are visible to all investors and can attract investment from anyone.

GXG OTC
This market segment is for an excellent place for smaller companies’ shares be traded in a lightly regulated environment. GXG OTC allows companies to do fund raising via private placement and thus no prospectus required. However, due to the nature of restricted circulation in the OTC market, companies will not have a publicly visible quotation and therefore are unlikely to have as much liquidity as companies traded on the MTF or Regulated Market. Traders of shares in this market must be a professional or sophisticated investor or a high net worth individual (SHNWI).

Tellus Trading System
Tellus trading system has a proven 10-year track record as an electronic trading platform for markets authorized by financial services authorities both in the UK and in Europe. This sophisticated trading system automatically matches bargain of bids and offers of shares at the best available price. Brokers with access to the system are able to view all the bids/offers prices, however, investors can only view the best five bids and offers from the GXG website. Buy and sell orders can be added or removed from the system at any time, however once a match is found, the bargain is immediately sent for settlement between the brokers.

 

Please contact us for a free consultation over GXG Markets
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Financial Products

Total Capital Solutions Ltd has strong relations with various Financial Institutions and can help companies acquire letters of credit, bank guarantees, proof of funds and performance bonds.

Credit Facility

A Credit Facility is a flexible financing structure in which GPG commits to purchasing shares of common stock directly from a company, at prevailing market prices, over a multi-year period - contact us for more information.

Prospectus Preparation

Our legal associate can prepare Prospectus both in English and German and handle the BaFin or FSA approval process.