- What is Nxchange?
- Does Nxchange hold a licence?
- Is Nxchange a new crowd funding platform?
- Is Nxchange a new stock exchange?
- Will Nxchange compete with Euronext?
- What does a decentralised stock exchange mean?
- How do I open an account at Nxchange?
- Is there any charge for opening an account with Nxchange?
- How can I change my email address?
- How do I change my profile?
- When are you classified as an investor at Nxchange?
- When are you classified as an analyst at Nxchange?
- When are you classified as a company at Nxchange?
- How do I file a bug or security leak?
- Where can I lodge a complaint?
- What vacancies does Nxchange currently have?
- What are the opening hours of Nxchange?
- How do I know whether my company is right for Nxchange?
- What is the difference between Nxchange and a traditional stock exchange? Why should I choose listing on Nxchange over a traditional stock exchange?
- Which companies are eligible for listing on Nxchange?
- What are the benefits for the listed companies?
- Can private limited companies also be listed?
- Can cooperatives, mutual funds and investment funds be listed on Nxchange?
- Can foreign companies raise capital through Nxchange?
- Which financial instruments are available to raise capital?
- Who can invest in my company?
- How much does listing on Nxchange cost?
- I do not want to attract new funding, but instead make our shares freely tradable. Is that possible at Nxchange?
- Does Nxchange have a licence, and is it regulated?
- How do I make interest payments on bonds and any dividends on shares?
- How do these listing requirements differ from Euronext's requirements?
- What are Nxchange's listing conditions?
- How do you list a company on Nxchange?
- Can companies that initially do not have a listing on Nxchange also participate in a community that is active on Nxchange, or maintain their own community via Nxchange?
- How can companies that successfully received crowd funding obtain a listing on Nxchange for a next round of financing?
- Can companies that are listed on a different stock exchange simultaneously be listed on Nxchange?
- Is there a minimum amount applicable to an issue via Nxchange?
- Is there a maximum amount applicable to an issue via Nxchange?
- How much does it cost to apply for a listing? Do I need to pay a set-up fee, listing fee and other annual costs?
- Is it true that no minimum issue amount applies to companies that seek a listing? From what issued amount is seeking a listing worthwile?
What is Nxchange?
Nxchange is a new generation stock exchange for direct trading in securities between companies and investors. Nxchange makes it possible to place and trade securities on a regulated platform without intervention of a bank or broker being required.
Does Nxchange hold a licence?
Yes, Nxchange holds a licence for a regulated market. This licence was issued by the Ministry of Finance. We are under the supervision of the Netherlands Authority for the Financial Markets (AFM) and the Dutch Central Bank (DNB).
Is Nxchange a new crowd funding platform?
No, Nxchange is not a crowd funding platform. The main difference is that crowd funding platforms are less heavily regulated and do not offer a secondary market.
This means that it is almost impossible for investors to further trade in securities after purchasing them, and prevents an early exit from the crowd funding platform. Furthermore, any person or business can attract capital via a crowd funding platform without any form of regulation.
Nxchange is a fully fledged stock exchange where companies can issue securities in a primary market to meet their capital needs. Investors can also trade securities with other investors in a secondary market where security and transparency is safeguarded by Nxchange.
As long as the issuing institutions meet the Nxchange listing conditions, then no restrictions apply to the issue of securities. Investors are not subject to any restrictions in terms of minimum order amounts.
Nxchange combines the positive elements of crowd funding (directly via a company’s own network or community) with the benefits of a regulated stock exchange (primary and secondary market in a regulated environment).
Is Nxchange a new stock exchange?
Yes, Nxchange is registered as a regulated market and as an investment firm with the Netherlands Authority for the Financial Markets. As such, the company is under the supervision of the Netherlands Authority for the Financial Markets (AFM) and the Dutch Central Bank (DNB). Nxchange offers its services under the same supervisory regime as traditional stock exchanges. Nxchange's permit as a regulated market has been provided by the Dutch Ministry of Finance.
Nxchange combines the successful elements of crowd funding (directly via the company's own network or community) with the benefits of a regulated stock exchange (primary and secondary market in a transparent, liquid and regulated environment).
Will Nxchange compete with Euronext?
Yes, Nxchange competes with Euronext and all other traditional, regulated markets and Multilateral Trading Facilities (MTFs). Nxchange operates under the same permit as Euronext and offers issuing institutions the possibility to trade securities in a transparent, liquid and regulated environment.
It is initially expected that Nxchange will only attract a limited amount of liquidity. On the other hand, the issuing institution will be able to directly address its community if it issues securities via Nxchange. Moreover, it will be less dependent on traditional financial service providers like banks, investment banks, brokers, fund managers, venture capitalists and private equity parties. Nxchange has also managed to simplify the listing process. This was achieved in close cooperation with a number of prominent law and accountancy firms. If the issuing institution complies with the listing conditions, it may complete a time- and cost-effective procedure to obtain a listing, and to issue securities on Nxchange.
As long as the issuing institutions meet the Nxchange listing conditions, then no restrictions apply to major issues of securities. Investors are not subject to any restrictions in terms of minimum orders.
What does a decentralised stock exchange mean?
Why wouldn't you be able to purchase shares in the KLM airline company via its own website? Why shouldn't it be possible to trade funds that are offered by a financial institution via its own website?
Securities that are listed on Nxchange can be purchased through a primary issue or on the secondary market via the central trading platform on the Nxchange website, and via issuing institution's own websites.
This means that in effect Nxchange is the first ‘white-labelled’ stock exchange. Investors no longer need to trade on a centralised stock exchange, but can now purchase shares directly via the issuing institution's own website in a primary issue or trade them in a secondary market. Nxchange enables issuing institutions to meet their capital needs directly via their own communities or network. This means that the issuing institution is less dependent on traditional financial service providers to meet their capital needs.
Nxchange will provide the issuing institution with full support in terms of providing the stock exchange/the trading platform.
Nxchange is the licence holder of the trading platform; Nxchange validates and accepts the investors (customer due diligence); Nxchange facilitates the ordering process, and the clearing and settlement of transactions; Nxchange will assist the institution to be compliant with the Nxchange listing conditions that apply to a public listing as well as Dutch law and regulations by offering a compliance module; Nxchange allows the company and the investors to directly contact each other via the Nxchange platform (anonymously if preferred).
How do I open an account at Nxchange?
There are three different ways of opening an account: With your Facebook account, Linkedin account or by entering a valid email address and password.
You will receive an activation email after registering.
Your account will need to be validated following its activation.
You can apply for validation by entering your name and address and bank details. We will also ask you for a copy of your passport or ID card and to transfer EUR 0.01 in order to verify your bank details.
Once all of your information has been received and validated, we will be able to open your account.
Is there any charge for opening an account with Nxchange?
No, opening an investment account is free of charge. We do ask you to transfer EUR 0.01 once so that we can verify your bank details.
How can I change my email address?
You can change your email address here (you need to log in first).
How do I change my profile?
You can change some elements of your profile yourself: your address, telephone number and password. To do this, go to ‘settings’ (you need to log in first).
When are you classified as an investor at Nxchange?
Any account holder who conducts a transaction on the Nxchange platform or who possesses financial instruments in an issuing institution is classified as an investor.
When are you classified as an analyst at Nxchange?
Any person – including account holders –who meets the necessary criteria and publishes an analyst report for the public on or via Nxchange’s platform is classified as an analyst. The analyst report may or may not recommend or propose an investment strategy regarding one or more financial instruments of the issuing institutions.
When are you classified as a company at Nxchange?
Any account holder who creates a company profile on the Nxchange platform is classified as a company.
How do I file a bug or security leak?
Email us at firstname.lastname@example.org
In case you discover a security leak we request that you email us immediately and do not tell anyone else.
Where can I lodge a complaint?
We regret that you are dissatisfied. You can lodge your complaint with Nxchange's Customer Service, preferably via email at email@example.com
Alternatively, you can contact our customer Service on 020 240 4360.
Disputes with Nxchange concerning the shares in the money market fund can be referred to the Financial Services Complaints Board (Kifid) at the following postal address:
PO Box 93257
2509 AG The Hague.
More information about the Kifid is given at www.kifid.nl.
All other disputes with Nxchange must be submitted to the competent court in Amsterdam (Netherlands).
What vacancies does Nxchange currently have?
You can find our vacancies on this page.
What are the opening hours of Nxchange?
Investors can trade on Nxchange 24/7. If you have specific questions or require assistance, please contact Nxchange during regular business opening hours.
How do I know whether my company is right for Nxchange?
In general, Nxchange is open to any company that needs funding and meets her listing conditions. No brokers or intermediaries are required: you are placed directly in contact with the investors and the community. Interested? If so, make an appointment with us to discuss the options for your company.
What is the difference between Nxchange and a traditional stock exchange? Why should I choose listing on Nxchange over a traditional stock exchange?
Unlike traditional stock exchanges, Nxchange operates as a community. There is direct contact with investors, which creates more loyalty and understanding, but also direct and faster feedback from this group. This makes it possible for you to work on long-term value creation, rather than on maximising short-term profits.
Also, the fees are lower than for a traditional issue of shares or bonds.
Which companies are eligible for listing on Nxchange?
In principle, all companies wishing to raise capital are eligible. We assess each application on its individual merits. Be sure to make an appointment with Nxchange to find out about the options for your company.
We do not accept any companies that are involved in illegal practices. Nor do we accept companies involved in the following activities:
- Offensive content
- Political fundraising
- Drugs, nicotine, tobacco production and/or sales
- Weapons production and/or sales
What are the benefits for the listed companies?
More efficient access to capital: Nxchange provides companies with fast and direct access to public capital without having to go through too complex and costly a process to obtain a listing.
Less dependency on traditional financial service providers: companies will be less dependent on traditional financial service providers. From now on companies will be able to directly obtain funding via Nxchange without the intervention of banks. Issuing institutions are no longer solely dependent on investment banks or brokers to issue securities. They can manage the issue of securities via their own network and communities. This means that companies that are in an early investment phase will also have other funding options than only through venture capital or private equity.
More understanding and loyalty from investors: investors and listed companies are in direct contact with each other. This ensures that the issuing institution will receive direct and fast feedback from the community. As a result, the model is more focussed on (long-term) financing and less focussed on day traders; however, daytraders are not excluded.
Offering shareholders liquidity: shareholders can trade with each other on a secondary market. Nxchange guarantees the safety and transparency of trading on this market.
Access to a new type of investors: Nxchange's trading platform offers the possibility to attract new types of investor who no longer simply seek (short-term) returns on their investment. Nxchange offers opportunities for companies that seek to finance long-term goals in the fields of medical technology, biotech (for example, the development of new medicines) or clean tech.
Capitalising on the community's investment: securities can be issued via Nxchange's centralised trading platform (www.nxchange.com). The platform can also be seamlessly integrated on the company's own website. This makes it easier for companies to attract their own clients, members or other (social media) communities, including less active investors, to invest in their company. As a result, the potential pool of investors that can be reached is much larger than is traditionally the case.
Can private limited companies also be listed?
Yes, private limited companies can be listed. Would you like to know what the options are for your company? Feel free to contact Nxchange to make an appointment.
Can cooperatives, mutual funds and investment funds be listed on Nxchange?
Cooperatives, mutual funds and investment funds can in most cases be listed on Nxchange. Make an appointment to discuss with us your situation and the available options.
Can foreign companies raise capital through Nxchange?
Yes, this is possible for pan-European countries, provided that they meet the Nxchange listing conditions.
Which financial instruments are available to raise capital?
You can issue the following financial instruments via Nxchange:
- depositary receipts for shares
- participation rights in an investment fund or an undertaking for collective investments in transferable securities (Ucits).
Who can invest in my company?
In general, any natural person or company can invest in your company. We verify the identity of both natural persons and representatives of companies, before they are able to create an account on the Nxchange platform. Once we have validated an account, it can be used for trading.
How much does listing on Nxchange cost?
As issuer, you pay a non-recurring set-up fee and a recurring licence fee. The licence fee depends on several factors. Feel free to contact us for more information on this subject.
I do not want to attract new funding, but instead make our shares freely tradable. Is that possible at Nxchange?
Yes, that is possible. Feel free to contact us for more information on this subject.
Does Nxchange have a licence, and is it regulated?
Yes. Nxchange has been issued with a licence by the Netherlands Authority for the Financial Markets (AFM) to provide investment services and conduct investment activities. It has also been issued with a licence by the Dutch Ministry of Finance to operate and manage a regulated market within the meaning of Section 5:26 (1) of the Dutch Financial Supervision Act (Wft). Nxchange is therefore regulated both by the AFM and De Nederlandsche Bank (DNB).
How do I make interest payments on bonds and any dividends on shares?
You transfer the entire amount of the payment to the account of Nxchange. We then allocate the correct amount to the investors entitled to them on the payment date.
How do these listing requirements differ from Euronext's requirements?
Companies can obtain a listing on Nxchange without a listing agent if they meet the Nxchange listing conditions. Companies take responsibility for preparing themselves for an IPO and must subsequently show this to the market. This gives the issuing institution more flexibility to select advisors. It also means the company is no longer dependent on a listing agent to issue the securities.
To trade on Euronext or other traditional stock exchanges, you need to have a listing agent. This is generally expensive and the issuing institution is completely dependent on this party for the issue of securities.
What are Nxchange's listing conditions?
Nxchange is accessible to pan-European companies that comply with her listing conditions. Nxchange's complete listing conditions are laid down in the Nxchange Listing Conditions. This agreement has been filed with the Chamber of Commerce in Amsterdam. The Listing Conditions contain at least the following criteria as dictated by Dutch law:
Companies that seek a listing on Nxchange must have a prospectus that has been approved by the Netherlands Authority for the Financial Markets (AFM), or a similar document if the company qualifies for an exemption.
Companies that are listed on Nxchange and prepare consolidated and company financial statements must prepare these in accordance with IFRS, as adopted by the European Union, and Section 9 of Book 2 of the Netherlands Civil Code.
If consolidated financial statements are not required, but only company financial statements are prepared, companies are permitted to prepare in accordance with generally accepted accounting principles (GAAP) in the Netherlands, as per Section 9 of Book 2 of the Netherlands Civil Code.
Corporate Governance Code
Companies that are listed on Nxchange must comply with the Dutch Corporate Governance Code. If they do not comply with (parts of) the principles as listed in this Code, they must explain the reason why.(the so-called comply or explain-principle).
How do you list a company on Nxchange?
If you want to list your company on Nxchange, please contact us for more information and an appointment to discuss with us your situation and the available options.
Can companies that initially do not have a listing on Nxchange also participate in a community that is active on Nxchange, or maintain their own community via Nxchange?
Yes, companies can be added to Nxchange's community prior to seeking a listing. The company may also invite its own network and communities, and Nxchange's community. In this way the company aims to provide its community with specific information in the pre-IPO phase, and can assess whether there is any interest in an issue.
How can companies that successfully received crowd funding obtain a listing on Nxchange for a next round of financing?
Every company that complies with the Nxchange listing conditions may obtain a listing on Nxchange. This also applies to companies that have already received crowdfunding in a previous financing round. They can list securities that have been sold to investors via crowd funding. Through the listing on Nxchange, a company can offer a transparent secondary market for these securities to its shareholders and investors.
Can companies that are listed on a different stock exchange simultaneously be listed on Nxchange?
No, in principle Nxchange does not permit dual listings of the same securities because this would mean that it cannot guarantee a direct settlement. Companies that want to list a specific security on Nxchange would need to first delist the product from the other stock exchange and subsequently apply for a listing on Nxchange.
Is there a minimum amount applicable to an issue via Nxchange?
No, as long as the issuing institution complies with the Nxchange listing conditions it may list and issue securities on Nxchange. Please contact us for more information about the Nxchange listing conditions.
Is there a maximum amount applicable to an issue via Nxchange?
No, issues via Nxchange are not subject to a maximum amount.
How much does it cost to apply for a listing? Do I need to pay a set-up fee, listing fee and other annual costs?
Companies that seek a listing on Nxchange must pay a set-up fee and an annual licence fee to use the Nxchange trading platform. For information on the actual costs, please see the Nxchange rates page.
Is it true that no minimum issue amount applies to companies that seek a listing? From what issued amount is seeking a listing worthwile?
Applying for a listing and preparing an organisation for an IPO does require effort in terms of time and money. Furthermore the company must pay a set-up fee and annual license fees. For this reason we expect that companies that seek to obtain less than €1,000,000 will be less likely to be interested in using Nxchange. However, from a technical perspective, companies seeking to obtain an amount as low as €10,000 can also apply for a listing.