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Deutsche B ? rse  Listing Details The Fastest, Most Efficient, Least Burdensome, and Least Expensive Exchange Worldwide
Exchange regulatory scheme caused by loss of business to London AIM Market In September 2005, the SQS Software Quality Systems AG, a Cologne University spin-off, took the unprecedented step of listing on the London AIM Exchange. This and subsequent AIM listings of German companies led to an uproar about domestic listings defecting to a foreign exchange. The direct result is the current regulatory scheme, the most efficient and least burdensome in the world The Trigger
Model the success of and compete with the AIM Market Kept Nomad centralized regulatory oversight Eliminate high initial cost of listing No extensive reports like Long Form, Working Capital, etc. Limited Listing Partner liability Abridged Listing Partner compliance obligations Eliminate non-essentials, enabling 10 day process Let Issuer determine the level of disclosure through selection of market segment  Regulatory Scheme
Listing Sponsor/Sterling € 20k deposit, €15k due at listing, €35k total Warrants Exchange ~€5k listing fee Least expensive listing process globally No other costs Company attorney must get shares into electronic format Normal corporate documentation in order Prospectus post-listing if desired Prospectus information largely re-useable for other listings Listing Cost
Sign Sterling and Sponsor agreements Convert Shares to electronic format ISIN number Corporate documents to Sterling/Sponsor Trading in 10 days following delivery of electronic shares Listing Time
Annual audited financial statements  within 6 months of fiscal year end Semi-annual unaudited financial statement within 3 months of half-year end Material corporate developments posted on website No other requirements!! Post Listing Filings
Annual Fees Listing Sponsor-  ~  €20,000 annual supervision fee Exchange-  ~ €2,500 Preparation of financial statement, normally incurred anyway No other cost Post Listing Costs
Liquidity is driven by CORPORATE PROGRESS TOWARDS LARGE MARKET CAPS Liquidity means stock buyers Stock price should be below fair value to give investors a reason to buy the stock Announced corporate progress is the key determinant Selling must be controlled by locking up existing shareholders Stock can be sold at the request of shareholder as long as Company controls the right to sell and presumably can place with counter party Liquidity Basics
First target group is people who already know the company Friends of friends (social networks) Passing the word the company stock is available and prospects are hot Results often surprising due to effect of social networks Liquidity First Step
Second target group is people who should know the company Investors in competitive companies Focus on key influencers Focus on cross-border and cross-regional investment groups Liquidity Second Step
Third target groups are momentum and opportunistic investors Establishment of first two target groups Focus on key influencers Focus on cross-border and cross-regional investment groups Liquidity Third Step
Appreciate your time and interest. Conclusion

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Deutsche B?rse Details

  • 1. Deutsche B ? rse Listing Details The Fastest, Most Efficient, Least Burdensome, and Least Expensive Exchange Worldwide
  • 2. Exchange regulatory scheme caused by loss of business to London AIM Market In September 2005, the SQS Software Quality Systems AG, a Cologne University spin-off, took the unprecedented step of listing on the London AIM Exchange. This and subsequent AIM listings of German companies led to an uproar about domestic listings defecting to a foreign exchange. The direct result is the current regulatory scheme, the most efficient and least burdensome in the world The Trigger
  • 3. Model the success of and compete with the AIM Market Kept Nomad centralized regulatory oversight Eliminate high initial cost of listing No extensive reports like Long Form, Working Capital, etc. Limited Listing Partner liability Abridged Listing Partner compliance obligations Eliminate non-essentials, enabling 10 day process Let Issuer determine the level of disclosure through selection of market segment Regulatory Scheme
  • 4. Listing Sponsor/Sterling € 20k deposit, €15k due at listing, €35k total Warrants Exchange ~€5k listing fee Least expensive listing process globally No other costs Company attorney must get shares into electronic format Normal corporate documentation in order Prospectus post-listing if desired Prospectus information largely re-useable for other listings Listing Cost
  • 5. Sign Sterling and Sponsor agreements Convert Shares to electronic format ISIN number Corporate documents to Sterling/Sponsor Trading in 10 days following delivery of electronic shares Listing Time
  • 6. Annual audited financial statements within 6 months of fiscal year end Semi-annual unaudited financial statement within 3 months of half-year end Material corporate developments posted on website No other requirements!! Post Listing Filings
  • 7. Annual Fees Listing Sponsor- ~ €20,000 annual supervision fee Exchange- ~ €2,500 Preparation of financial statement, normally incurred anyway No other cost Post Listing Costs
  • 8. Liquidity is driven by CORPORATE PROGRESS TOWARDS LARGE MARKET CAPS Liquidity means stock buyers Stock price should be below fair value to give investors a reason to buy the stock Announced corporate progress is the key determinant Selling must be controlled by locking up existing shareholders Stock can be sold at the request of shareholder as long as Company controls the right to sell and presumably can place with counter party Liquidity Basics
  • 9. First target group is people who already know the company Friends of friends (social networks) Passing the word the company stock is available and prospects are hot Results often surprising due to effect of social networks Liquidity First Step
  • 10. Second target group is people who should know the company Investors in competitive companies Focus on key influencers Focus on cross-border and cross-regional investment groups Liquidity Second Step
  • 11. Third target groups are momentum and opportunistic investors Establishment of first two target groups Focus on key influencers Focus on cross-border and cross-regional investment groups Liquidity Third Step
  • 12. Appreciate your time and interest. Conclusion