Aquis Stock Exchange launches incentive scheme for market makers
Exchange services group Aquis Exchange PLC (LON:AQX) today announced that its subsidiary Aquis Stock Exchange (AQSE) has launched an incentive scheme for market makers. The scheme aims to boost liquidity and improve the functioning of the AQSE market for growth stocks.
Under the terms of the scheme, participating market makers will offer two-way prices, in retail size, for 50% of stocks in the Apex segment of the AQSE Growth Market. Spreads must be no wider than 5%. Apex is aimed at more established companies, with a larger market capitalization (£10m-£500m), a free float of at least 25%, broad retail access and ones that adhere to a recognised corporate governance code.
Candidates for Apex, which is expected to begin with around 25 constituent companies, include businesses such Chapel Down Group, Shepherd Neame and Arbuthnot Banking Group.
The scheme begins in January 2021 and aims to bring more competition into the market, narrow spreads, increase liquidity and enhance the overall performance for all users.
Market makers qualifying for the scheme will be awarded warrants convertible into AQSE equity. This opportunity is open to the top five firms each year, with the best performers receiving a larger percentage. Over the three-year term of the scheme, market makers will have the opportunity to get equity up to 19.9% in AQSE.
AQSE has already attracted a number of key market makers to its scheme. Early adopters include Canaccord Genuity, Liberum, Peel Hunt, Shore Capital Ltd, Stifel and Winterflood Securities Limited.
AQSE was acquired by Aquis in March 2020. It was formerly known as NEX Exchange Ltd. It is permissioned as a Recognised Investment Exchange, which allows it to operate a regulated listings venue.