- 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?
- How do I deactivate my Nxchange account?
- Where can I lodge a complaint? What vacancies does Nxchange currently have?
- What vacancies does Nxchange currently have?
- What are the opening hours of Nxchange?
- Is it true that no minimum issue amount applies to companies that seek a listing? From what issued amount is seeking a listing worthwile?
- How much does it cost to trade on Nxchange?
- What are the benefits for investors?
- What can investors expect in terms of liquidity?
- What type of securities can be traded on Nxchange?
- What type of securities will most likely be listed?
- How are transactions settled on Nxchange?
- How is the real-time settlement of transactions safeguarded?
- Where are the securities that are traded via Nxchange stored?
- I live abroad. Can I trade on Nxchange?
- I am a minor, or I want to buy on behalf of a minor. Is that possible on Nxchange?
- Is subscription to a new issue binding?
- What happens if a new issue does not go through because the financing target has not been reached?
- What is a contra account?
- How long does it take to receive my cash withdrawal following the sale?
- Can I be sent an annual tax statement of my Nxchange account for my tax return?
- Do I receive statements for my Nxchange account?
- How do I transfer money to my Nxchange account?
- How can I change my contra account?
- How do interest payments on bonds and dividends on shares work?
- How do you describe the profile of investors that you seek to attract?
- Do investors pay transaction fees on Nxchange?
- What happens if I follow a company?
- Can I purchase and trade securities on Nxchange via a broker or bank?
- How much do investors pay to create an account on Nxchange?
- Does Nxchange have a sector focus?
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?
Nxchange has a licence for a regulated market. Apart from Euronext, Nxchange is the only organisation in the Netherlands that holds this licence. The licence is 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 €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 initially transfer €0.01 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.
How do I deactivate my Nxchange account?
If you would like to deactivate your Nxchange account, please contact us at email@example.com
Where can I lodge a complaint? What vacancies does Nxchange currently have?
We regret that you are dissatisfied. You can lodge your complaint by explaining it in our contact form and sending it by email to firstname.lastname@example.org.Are you dissatisfied with the way that your complaint has been handled? In that case you can always contact the Dutch Financial Services Complaints Board (Klachteninstituut Financiële Dienstverlening, Kifid). Click here for more information.
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.
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 requires effort in terms of time and money. Furthermore the company must pay a set-up fee and annual licence 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.
How much does it cost to trade on Nxchange?
Nxchange charges a buying and selling commission and an annual custody fee. The custody fee is calculated daily on the basis of your portfolio's current market value and is charged monthly. No charge is made for keeping an account or profile with Nxchange. For current rates, please see the fees page.
What are the benefits for investors?
24/7 trading and real-time Delivery Versus Payment (DVP) settlement: securities can be traded on Nxchange 24 hours a day, seven days a week. Transactions are settled in real time, where the securities are transferred and paid simultaneously.
Transparency: investors can directly ask a company questions and the company can enter into a direct dialogue with its capital providers via a public Q&A on the issuing institution’s company community page. On the company research page, you can also find analysts’ reports concerning the issuing institution.
All financial information of the issuing institution and the underlying documents are available via the platform. The company will also directly provide information via the platform to interested parties and provide insight into the (social media) 'sentiment' concerning the issuing institution. The platform also offers a forum on which investors can communicate with each other and exchange ideas. Through these initiatives, Nxchange offers a level playing field for all parties.
The community's collective wisdom: the Nxchange platform offers users a forum on which investors can communicate and exchange ideas with each other. Investors can also directly contact each other by sending each other personal messages. Anyone who meets the necessary criteria can publish analyses about the issuing institution. These analyses are published on the Nxchange platform and will be available to everyone.
Direct involvement from the company: regular investors will be able to enjoy privileges that are normally only reserved for majority shareholders or shareholders with a majority interest.
Access to IPOs: investors will have the opportunity to take part in IPOs and share issues.
Trading securities on a regulated market: securities can be traded in a transparent, liquid and regulated secondary market.
What can investors expect in terms of liquidity?
Securities can be traded via Nxchange 24 hours a day, seven days a week.
Prices are determined by supply and demand. Nxchange does not view restricted liquidity as a problem. Everything has a price; if one party wants to sell, it must lower its price until a prospective buyer matches the price. On the other hand, if a party wants to make a purchase but no securities are available, then he/she will have to raise his/her price.
In the future, Nxchange may attract 'market makers' for some securities.
What type of securities can be traded on Nxchange?
Shares, depositary receipts for shares, bonds and UCITS (undertaking for collective investment in transferable securities -> funds).
What type of securities will most likely be listed?
Shares, depositary receipts for shares, bonds and UCITS.
How are transactions settled on Nxchange?
Transactions on Nxchange are settled in real-time, 24 hours a day via delivery versus purchase (DVP). Nxchange is able to do this because all securities that are listed on Nxchange are not listed anywhere else, and because Nxchange manages the clearing and settlement of transactions on its platform.
How is the real-time settlement of transactions safeguarded?
It is not possible to place an order on Nxchange if you do not own securities or funds. Another clearing takes place at the time of the transaction. These can only be affected if the seller owns the securities and the purchaser has the funds.
Where are the securities that are traded via Nxchange stored?
The securities are held in a giro depot at Euroclear. They are registered in name upon purchase and fall under the scope of the Dutch Securities (Bank Giro Transactions) Act. Under this act, the investor is directly entitled to the securities without the intervention of Nxchange or any other third party. Nxchange keeps records which show which account holder is entitled to which securities.
I live abroad. Can I trade on Nxchange?
Yes, in principle you can trade when you live abroad. However, Nxchange reserves the right to reject investors when deemed necessary according to the client acceptance policy.
When validating your account, you will be asked to enter your address details and a valid account number and to upload a copy of a valid passport. To validate your account you will then be asked to transfer €0.01 to our account. If this transfer succeeds and your account can be validated you will be able, from that point onwards, to transfer money to and withdraw it from your account as well as trade on the Nxchange platform.
I am a minor, or I want to buy on behalf of a minor. Is that possible on Nxchange?
You can open an account for a minor on Nxchange. The minor's parent or guardian will need to sign a minor's declaration and send it to Nxchange. Please contact us at email@example.com for this form.
Is subscription to a new issue binding?
Yes, a subscription to a new issue is binding in the sense that:
- If you subscribe under the auction system for a set price, it is no longer possible for you to withdraw your order;
- In the case of an order to buy participation rights in an open-end investment institute, you cannot withdraw your order during the period in which the subscription for the issue in question is closed. That period starts at the point at which it is no longer possible to subscribe for the current issue of those participation rights.
What happens if a new issue does not go through because the financing target has not been reached?
If the financing target has not been reached and the issue is withdrawn for that reason, your order to subscribe for this issue is cancelled and is therefore not executed.
What is a contra account?
When you open an account at Nxchange, you will need to select a fixed contra account. A contra account is a bank account held in your name and address at a recognised banking institution. This bank account is linked to your Nxchange account. Withdrawals from your Nxchange account can only be transferred to this fixed contra account with your bank.
Your contra account must be registered in the same name as your Nxchange account. You will however be able to make payments from an account other than your contra account at a later date. Only the initial payment used to validate your Nxchange account has to come from your contra account. Nxchange uses identification through your passport or ID card for this purpose.
How long does it take to receive my cash withdrawal following the sale?
All outgoing payments are processed once a day. Depending on when you submitted a cash withdrawal request, a transfer to a domestic bank account can take one to three working days. If you have not received the transferred amount after three working days, you should contact Nxchange. The processing time for transfers to a foreign bank account may be longer.
NB: following the sale of securities, your cash position will not be written back to your bank account automatically. For this purpose you will need to make a manual withdrawal request by pressing the 'Withdrawals' button.
Can I be sent an annual tax statement of my Nxchange account for my tax return?
You can download an annual tax statement by logging in and going to the option 'Statements'.
Do I receive statements for my Nxchange account?
You do not automatically receive periodic statements by email or ordinary mail. You can however download monthly account statements. For this purpose you will need to log in and go to the 'Statements' option.
How do I transfer money to my Nxchange account?
You can quickly and easily transfer money via iDeal by logging in and pressing the 'Deposit' button. NB: many banks operate a daily or transaction limit of € 50,000 for iDeal. You can also transfer money to account number NL24DEUT0319851249 in the name of Stichting Escrow Nxchange in Amsterdam, stating your Nxchange account number as a reference.
How can I change my contra account?
You cannot change your contra account yourself. You can contact us on firstname.lastname@example.org for this. You will then receive a form, which we ask you to fill out and sign. Your signature will have to be authenticated by a competent institution, such as your local authority, a civil-law notary or your bank. You will also need to attach an authenticated copy of your passport or ID card. Your local authority, a civil-law notary or your bank will also be able to authenticate this. Finally, we ask you to transfer (at least) EUR 0.01 from your new bank account so that we can once again verify the registration details. All of the documents must be sent to our business reply number (see the form for the address). No postage is required.
The authentication of your signature and the copy of your passport or ID card will be at your own cost.
How do interest payments on bonds and dividends on shares work?
If you own one or more bonds, you are entitled to periodic interest payments. The company for which you hold bonds transfers the necessary amount to Nxchange. Your interest will be transferred to your account at Nxchange on the payment date.
The same procedure applies to any share dividends due to you.
How do you describe the profile of investors that you seek to attract?
The investor's profile differs per listed company. Different target groups will be addressed depending on the financial instrument, the company, which phase the company is in, and which industry or sector the company operates in.
Do investors pay transaction fees on Nxchange?
What happens if I follow a company?
'Following' a company means that you receive news bulletins and other relevant information about the company on your personal page.
Can I purchase and trade securities on Nxchange via a broker or bank?
There are currently no brokers or banks that are registered with Nxchange. However, this may change at some point in the future if the broker or bank complies with Nxchange's regulations.
How much do investors pay to create an account on Nxchange?
Investors can create an Nxchange account free of charge.
Does Nxchange have a sector focus?
No, Nxchange does not have a sector focus.