ICAP’s Securities & Derivatives Exchange (ISDX) has demonstrated its intention to build its equity market for smaller growing companies by strengthening its board ready for a growth in 2013.
The former chief financial officer of Chi-x Global has been appointed to the board of ICAP’s new securities exchange, ISDX. The global interdealer broker will be revamping the new ISDX Stock Market in the months ahead. ICAP are already active in a broad range of areas including, commodities, FX, emerging markets, equities and equity derivatives.
In October 2012 the former PLUS-quoted stock market operated by PLUS Markets Group was bought by ICAP. The acquisition of the PLUS-quoted stock market is the latest reincarnation of the junior market. Prior to ownership by PLUS Markets Group, the market was known as OFEX.
Under its new ISDX banner its focus will be as an equity stock market designed for small and medium sized companies who want to raise money from investors, to finance and grow their businesses. ISDX will be of particular interest to smaller companies considering a move to a public markets for the first time to raise equity finance.
Commenting on the move to strengthen ISDX’s board, John Holland of Flotation Consultants Holland Bendelow said, ‘it appears that ICAP are serious about developing Securities & Derivatives Exchange (ISDX)as a real alternative for smaller growing companies seeking modest amounts of investment capital. No doubt there will be further announcements about ISDX’s Board in the coming months as the market cranks up its marketing drive to compete with The London Stock Exchanges AIM Stock Market’.
ISDX has a Recognised Investment Exchange licence from the UK’s stock market regulator, the Financial Services Authority, which permits it to list and facilitate trading in proprietary securities on the platform. ICAP is also aiming to introduce a suite of listed derivative products in a move that could pitch it in competition with leading European market operators Eurex and NYSE LIFFE.
ISDX is generally seen as most suitable for companies looking to raise up to £5m, and with a market capitalisation of up to £20m. There are no formal restrictions on the type of business or industry sector, and applicants may be start-up or existing trading businesses.
The market offers less onerous entry criteria than other UK stock markets and a regulatory regime which is sympathetic to the needs of growing companies.
The market also offers some useful benefits for those looking to invest in ISDX companies which includes various tax planning reliefs. These may include, CGT Gift Relief, Inheritance Tax business property Relief, The Enterprise Investment Scheme, and Venture Capital Trusts.