The Copenhagen Stock Exchange will now continue working on the project, and the preparation of a detailed set of rules for the alternative marketplace is expected to be completed in the late summer or early fall. Then we will have a new and short consultation round to collect and assess comments and views on the actual rules. The rules governing the alternative marketplace will be drawn up in dialogue with, inter alia, the Danish Financial Supervisory Authority, which shall approve the rules.
An alternative marketplace is expected to attract companies that are too small or otherwise unfit to become listed as a genuine exchange-listed company on the Copenhagen Stock Exchange due to the demands of and expectations for listed companies today.
An alternative marketplace will render smaller companies more visible and ensure a current pricing of the shares. These are two important aspects which support the companies’ ability to raise capital and make employee share schemes, etc. possible. The future alternative marketplace will make it easier for the companies to spread ownership where the existing shareholders wish to reduce their ownership interest e.g. via a succession process. Finally, the objective valuation will provide the companies with a new tool to be used in the day-to-day management and development of the company.
Given today’s market structure, these companies are confined to raising capital via banks, mezzanine financing, private equity and venture funds.
Provided that the work progresses as planned, we expect an alternative marketplace under the auspices of the Copenhagen Stock Exchange to be a reality by the end of this year. Thus, we are going to set up a new unit as a part of the business area Cash Market Denmark to support and focus on the development of an alternative marketplace in Denmark. Carsten Borring, who is presently a Senior Advisor at the Copenhagen Stock Exchange, has been appointed head of the new unit. Carsten Borring has been a key figure in laying the groundwork for the alternative marketplace.
The concept for the alternative marketplace is tailor-made for the Danish market and related to the Danish government’s initiatives for 2005. The alternative marketplace will use the same infrastructure (the SAXESS trading system) as is used within OMX Exchanges. OMX Exchanges is going to evaluate the experience from the Copenhagen Stock Exchange as a part of the development of an integrated Nordic market.
