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Centralized Liquidity Challenges on Stock Exchanges: Analysis and Solutions

The challenges of centralized liquidity on stock exchanges: a brief analysis.

The existing stock exchanges around the world showcase a wide range of sizes and concentration. For instance, the NYSE represents a colossal $18.5 trillion in market capitalization, while smaller exchanges in Malta, Cyprus, the Seychelles and Bermuda range from just $1 billion to $4 billion combined, comprising a mere 0.01% of the total market capitalization.

ASMX recognizes that these exchanges hold significant untapped potential and our vision is to unlock this hidden value by providing our  technology and regulatory stack for these exchanges to flourish, attracting investors, quality issuers and facilitating efficient and transparent trading.

With liquidity concentrated on larger exchanges many quality smaller companies (sub £200 million market capital) are exclude because of very high listing costs and continuing costs of being listed. Smaller exchange are more nimble, flexible and cost efficient, but suffer from a lack of liquidity.

ASMX solves this by connecting exchanges to each other and to liquidity pools around the globe.

The image below, courtesy of The Money Project visually captures the concentration that has occurred in worldwide capital markets.

Courtesy of: The Money Project