The Gibraltar Stock Exchange (GSX) has launched a self-regulated Multilateral Trading Facility (MTF), the GSX Global Market (GM), for debt securities and funds, which will operate under GSX’s MiFID licence.
The Gibraltar Financial Services Commission has granted GSX permission to operate an MTF so allowing GSX to further enhance its service offering. The self-regulated market offers issuers greater flexibility and choice as well as increased speed to market.
The opening of GM means the Gibraltar Stock Exchange is currently able to offer issuers: GSX Main Market – an EU regulated market for funds and debt securities offering a Prospectus Directive compliant listing solution including passporting; and GSX Global Market – a self-regulated market (MTF) for funds and debt securities offering a listing solution whereby listing particulars are approved before admission to GSX.
Nick Cowan (pictured), managing director of GSX, says: “We have opened the Global Market due to increased demand from Issuers seeking an alternative venue that is price competitive yet retains GSX’s values of reputation, regulation and speed to market.”
GSX has also launched a new standard for due diligence with companies wishing to join or list now having the option to submit themselves to approved provider third party due diligence.
GSX has designed its own due diligence handbook (the GSX Procedures Manual) to accompany the move. GSX believes this process will build confidence in investors and help the issuer in its capital raising.
GSX has reached agreement with two research firms with expertise in analysing the commercial risks and opportunities in business cases, ACF Equity Research and Hardman & Co.
Cowan says: “GSX’s values are based around reputation, regulation, and speed to market. It is standard practice for our listing members to carry out financial, legal, and controller due diligence on all applications, nevertheless, we wanted to provide additional clarity on the commercial aspects. Our GSX Procedures Manual introduces commercial due diligence as a standard element of the listing process, and these new arrangements offer our listing members two trusted sources of commercial due diligence, providing investors with a higher level of assurance and increasing GSX’s speed to market.”
"ACF Equity Research is delighted to have been chosen as an independent due diligence research provider by GSX," says Christopher Nicholson, managing director at ACF Equity Research. "In today's globalised economy, it's vital that smaller and mid-size cap companies are able to show that they are just as transparent and have exposed themselves to an appropriate level of third party appraisal as have their much large competitors in order to attract capital and maintain investor interest. Our due diligence, research, and consultancy supports greater liquidity, higher valuations, and access to a wider pool of investors, delivering real value unbundled from corporate advisors, trading, and corporate finance for corporates. We believe GSX’s step forward will be seen as an early move others will follow and this approach is to be encouraged globally.”
Keith Hiscock, CEO of Hardman & Co, says: “Hardman & Co is pleased to have been asked by GSX to be part of its due diligence process. We have offered commercial due diligence services for more than 20 years. Our work includes: expert witness assignments in court cases; valuing businesses for corporate finance houses and private equity firms; third party verification of global corporates’ own diligence; and independent assessment of investment opportunities for an Ivy League foundation.”