There are still many benefits to going public, including access to capital through a wider range of investors and an increased profile. “There are clear advantages to having a public price for your shares,” said Patrick Birley, chief executive of NEX Exchange, a rival to AIM, which counts Arsenal football club and brewer Shepherd Neame among its constituents. “It’s easier to incentivise management. It makes an exit process much more straightforward.”
Investing in the stock market can be a laborious task. Reading the latest research, calling up your broker, watching the latest trends on financial TV channels, subscribing to the Financial Times or reading Investment Week or Investors Chronicle. What if you as an investor could have access to more than just the companies listed on the FTSE 100, FTSE 250 or FTSE 350?
One example is the requirement for trading venues to record and check vast amounts of data — some of which will come from the venue’s users, who will all need an internationally-recognised unique 20-character number known as a Legal Entity Identifier.
Complying with this rule is then complicated if you are trading via an Asian, rather an EU-based entity. “In that case, reporting requirements fall to us, which requires collection of personal data,” says Ben Pott, head of European affairs at Nex Group, which operates a bond and currency trading venue in London.