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Designated Sponsors: Providers of Liquidity « FSE Listings

Designated Sponsors: Providers of Liquidity

Thursday, August 12, 2010 @ 04:08 PM
posted by FSE Listings

Designated Sponsors: Providers of Liquidity

The lead broker/market maker of a Frankfurt Stock Exchange traded security can also be hired by the public company to provide the function of designated sponsor. In a stock with lowtrading volume, it is often difficult for investors to buy or sell because there may not be another buyer or seller willing to trade at that particular time at the price offered. In such cases, buys or sells in the shares oftencauses large market price fluctuations. Basically, the designated sponsor provides investors with immediate liquidity and allows for continuous trading in the security by guaranteeing an appropriate trading margin and, thus, fair prices in XETRA (the electronic trading platform). The designated sponsor does this by entering binding buy or sell prices into the trading system for less liquid securities, thus preventing imbalances between supply and demand. Because the lower tiered segments of the Frankfurt Stock Exchange are often illiquid, the designated sponsor provides an extremely important function by enabling shareholders to execute buy or sell orders at anytime. Moreover, without the designated sponsor function, there is continuous trading on the floor of the Frankfurt Stock Exchange, but only one ‘auction’ per day on XETRA. Designated sponsors ensure that trading continues even when trading volume is low.  The service provided by the designated sponsoris valuable and includes advise and support in other areas not mentioned, but the service is not cheap. 

If you are interested in going public, contact info@fselistings.com to get you sponsored and listed today!

*FSE Listings: Note of warning, we have no affiliation to a group misrepresenting the FSE Listings brand called Julius Csurgo, Global Regency, Merger Law Associates, Frankfurt Listings, and other such names. As far as our research has revealed, they appear to charge more and allegedly are slower than our firm at listing, in addition, we are not even sure they can list firms. Several firms have complained they were listed and didn’t even get to trade or clear properly using listings services and contacted us believing us to be the same firm. We believe that in this matter, one should be careful of all firms who do not have the representative Mark Bragg contact you. Our firm listed several companies in April and expects to do this again in May, with over 100 listed to date as a consortium. We are the leaders, competition is only healthy if they are not misrepresenting a brand, therefore, we bring this to your immediate attention that we have no affiliation to these firms. We are the only FSE Listings Inc, contact Mark Bragg today.