European Stock Exchanges: New markets for old
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European Stock Exchanges: New markets for old

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Determined not to be left behind by its main European competitors, the Swiss stock exchange has just opened SWX New Market, specially tailored to provide medium-size high-growth companies with easier access to equity funding.

Although the small-company sections of most exchanges favour hi-tech and telecommunications companies, the nature of the Swiss economy gives it a bias towards biotech, medical technology, nutrition and pharmaceuticals. "In Switzerland," explains Michael Stäheli, member of the executive board of the Swiss Stock Exchange, "we have pharmaceuticals giants such as Novartis and Roche and that has created two main effects. First, there are a lot of small companies working for these big multinationals exactly like in Turin there are a lot of small companies working for Fiat. Second, Swiss investors know the sector very well: it is where they invest a lot of money. That attracts many foreign companies to the Swiss markets."

For that reason SWX New Market was designed to be as open to foreign companies as to Swiss. Its first listing will be an American company, BioMarine Pharmaceuticals, which is already quoted on Nasdaq. And despite Switzerland's four official languages - French, German, Italian and Romansch - the official language on the new market will be English.


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