Benefits Of Cross-Trading In The U.S

Many global and Bursa-listed companies view their successful listing as a crucial accomplishment, but they may not be aware of the limitations of solely listing in their home market in Malaysia. These companies may not realize that American investors may be hesitant or unable to invest in foreign markets, and that the information they disclose locally may not be easily accessible in the US. To tap into the largest market for capital expansion and growth, the best approach is to Cross-Trading.

Access To U.S. Capital Markets Increasingly Important For Malaysian Issuers

Malaysian issuers recognize the importance of accessing the US Capital Markets to expand their investor base. Cross-Trading on a secondary market provides an efficient way for companies to establish a presence and attract US shareholders. US investors prefer to see quotes in US dollars during regular trading hours.

What Are The Benefits Of Cross-Trading in the U.S?

There are numerous benefits to Cross-Trading in the U.S:

  • Diversifying your shareholder base
  • Making your financial information, research, pricing and risk assessment more broadly available to U.S. investors
  • Appealing to those investors who prefer securities traded domestically in U.S. dollars
  • Enhancing visibility among broker-dealers by supporting broker and sell-side compliance

Synergies Create Opportunities For Enhanced Liquidity

Cross-Trading provides companies with reciprocal opportunities to improve liquidity in both their domestic and international markets.A recent study by Oxford Metrica found that companies experience a 26% increase in liquidity in their home market and a 67% increase on the OTC Market after joining the OTCQX Market. This provides a cost-effective alternative for international issuers to raise capital and increase global investor awareness.

Furthermore, a strategic alliance between OTC Markets Group and the Canadian Securities Exchange demonstrates the benefits of secondary trading on the OTCQX Best Market/OTCQB Venture Market, including greater access to financial information, increased global investing opportunities, and more efficient trading for investors and the broker dealer community.

Fundamentally, Cross-trading offers a turnkey approach for Malaysian companies, while also providing a valuable opportunity for international companies to expand their global reach and increase their access to capital. By bridging the gap between different markets, cross-trading can create opportunities for growth and expansion.

Disclaimer: Hexcellence Consulting, a registered Malaysian company specializing in all aspects of going public in U.S. Capital Markets. The information herein is for informational purposes only and does not constitute legal, financial, or investment advice. While we prioritize accuracy, some data may be sourced from third-party reputable sources. Our views expressed here are our own and may not represent those of third parties or regulatory bodies.


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