Proposals by Cardiff Central AM and Liberal Democrat economy spokeswoman Jenny Randerson for a Welsh stock exchange have started to gain momentum with experts telling the Western Mail that the idea deserves to be looked at.
Simon Brickles, the former head of the London-based Alternative Investment Market and chief executive of Plus Markets, a specialist stock exchange also based in the UK capital has backed the idea. Insisting that small businesses such as restaurants and nightclubs could use the stock exchange model, Mr Brickles said: “It’s not something terribly mystical.
“It doesn’t matter what it is, if it’s a well-run business and if it’s relevant to what people want to do, then why not?”
Robert Lloyd Griffiths, of the Institute of Directors, welcomed the suggestion of a stock exchange, saying: “From the small business perspective, anything that can assist them raising finance in these difficult times shouldn’t be dismissed.”
He said that businesses had been on a “roller coaster ride” in recent months and would need to be convinced of the merits of the venture, adding: “Let’s have a dollop of common sense and caution as well.”
David Rosser, of the CBI, said the idea’s potential should be explored thoroughly.
He said: “I certainly agree it’s not something you should dismiss without greater consideration.”
A stock exchange is a mutual organisation which provides facilities for trading and the issue and redemption of securities as well as the payment of income and dividends.
Supporters of the concept believe investors frustrated with the low interest rates offered by banks would benefit from the exchange, as would entrepreneurs who have found their traditional sources of credit have dried up.
Jenny Randerson said that having a Welsh stock exchange would not involve building a trading floor but setting up an electronic system so Welsh enterprises could raise the funds to expand.
She believes it could be launched for between £1m and £3m and would only need around six staff for it to function.
She said: “If you look at many of the successful regional markets around the globe, you can see that they have been launched with relatively low start-up costs by using technology and existing infrastructure carefully.
“As a country that overwhelmingly relies upon small and medium-sized businesses, we need to be radical and bold in our thinking, and this idea needs to be carefully considered.”
Related posts:
Mandy Rice-Davies Applies