I was interested to hear about the launch of GXG Markets UK this morning which I thought was a great example of finding and filling a gap in a market.
What is GXG Markets UK?
GXG Markets offer a three tier London based equity market for small and medium-sized businesses.
- GXG Regulated Market
- GXG MTF
- GXG OTC
The idea is that it forms a bridge between the private equity world of venture capitalists and business angels and the more formal small company markets like Plus and AIM.
What’s Different About GXG Markets UK?
GXG Markets are moving away from the market maker concept used on Plus and AIM where market makers list their buying and selling prices with potentially sizeable spreads in between to matched bargain trading where a price is agreed between buyer and seller.
Prices move with a market maker on sentiment and regardless of whether deals are being done at those prices or whether there is news about the company’s prospects.
For More Information About GXG Markets UK
Go to their website at gxgmarkets.co.uk
The downside is that taking away the market maker role will reduce liquidity of shares since to sell, you have to find a buyer or to buy, you have to find a seller.