UK Stock Market predicts growth
Asset Match who launched following a buy out of the Sharemark stock market at the end of 2012 predicts considerable growth over the next 3 years. This is perhaps the least well known and almost certainly the smallest of the UK based Stock Markets. But even though this is the case we are expecting big things in this arena over the coming months. This market offers a simple mechanism for companies to trade shares internally between employees in a cost effective manner and it allows the buying and selling of shares participation by new shareholders.
The company uses technology and an electronic platform to redress the current City "pricing" structure for companies who wish to provide liquidity for their shareholders.
Asset Match’s stock market vision is to create a functioning alternative for occasional trading of shares in private companies. Although their business model currently focusses on the UK, this could be replicated to other European economies once the UK business has been established.
Asset Match has a transparent electronic platform for trading shares, usually from profitable and established UK companies. The system works by centralising liquidity in the shares of small and medium sized companies. Operating a peer to peer trading platform, this system enables shareholders to sell their shares quickly and easily. The system also allows investors in the companies to benefit from a fair price for their shares.
Following a company joining Asset Match, sellers send their share certificates to an Asset Match clearing agent before they are able to sell. Registered buyers of shares may be institutional investors or high net worth individuals.
When a transaction has been matched the buyer sends funds to the clearer. Funds are then held in escrow until settlement and then transferred to the seller. At this point new share certificates are sent to the buyer.
Asset match claim that their unique stock market allows companies to control and manage liquidity for their shareholders more efficiently, building an investor profile at the same time.
There is really only one thing that could be classed as a drawback in this market and that is the Asset Match stock market has not been implemented as an area in which companies can facilitate fundraising. For these types of smaller companies that are seeking methods to raise capital for growth may be better served by either the AIM or ISDX stock markets.
John Holland was the former head of the UK regional operation at the London Stock Exchange, with responsibility for both AIM and The Main Market. He has been advising companies since 1995 about stock market flotation and is a regular author of company finance and stock market publications and articles in business and financial press as well as various institutions on the internet.
