AQSE - consultation paper on market enhancements

Executive Summary
Aquis Stock Exchange (formerly named NEX Exchange) recognises that great companies will start small, grow and mature. To support this growth cycle, AQSE proposes to create two new segments – APX (apex) and AXS (access) within the existing growth market.

APX would be for larger companies with a more established market cap and a strong growth strategy, which publish a Growth Prospectus, allowing retail participation in small-mid cap IPOs. AXS would be for companies that are at an earlier stage in their growth, or appeal to investors that are likely to take a longer-term view; consequently, the stocks are naturally less liquid.

APX and AXS will be segments of the AQSE Growth Market, and investors may, therefore, benefit from certain tax reliefs that support investment in entrepreneurial growth companies. To broaden the range of advisers available to companies looking at admission to AQSE, Nomads will be immediately eligible for AQSE Corporate Adviser status. To encourage fair participation in post-IPO equity fundraising and to support liquidity, AQSE proposes that Corporate Advisers must keep AQSE informed of the details of placings, including the pricing and allocation of securities, how the allocation might support secondary market liquidity and details of any other relationships that may have influenced the terms and/or allocation of the
placing.

Brokers and small/mid-cap institutional asset managers will be consulted on their parameters for investing in AQSE companies in an effort to facilitate greater alignment with the investment strategies of this sector and small/midcap companies seeking capital. AQSE is of the view that institutional support can assist validate market valuations and are a source of secondary market liquidity.

To better facilitate trading, price discovery and tighter spreads in AQSE securities, AQSE is reviewing the trading systems deployed by its markets, including the introduction of auction on-demand and continuous trading order books systems. AQSE is also examining options to manage the impact of institutional short selling on the trading profile of small-mid cap companies that are in their growth phase. Read more