About Ofex

What is Ofex?

Ofex is an established third-tier market place for companies looking to progress from Ofex to AIM to the Official List. Whilst Ofex is not termed an "exchange" as it is not a Recognised Investment Exchange ("RIE") as defined by the Financial Services and Markets Act 2000, it is authorised and regulated by the Financial Conduct Authority (FCA). Ofex has a similar role and objectives to an exchange but with the difference that securities traded on Ofex are unlisted and unquoted and are not traded "on-exchange".


Company Data & Market Information - Newstrack Service

Ofex provides a news and information service of prices and trading information, background financial information and stories for all Ofex traded securities and underlying issuers. This information is available from the Ofex website www.ofex.com. Private investors can also access closing price information from a selection of newspapers, in particular the FT and the London Evening Standard.


Trading Times

Ofex operates between the hours of 08:00 - 16:30 London time. All UK Bank Holidays are observed and Ofex mirrors the trading hours of the London Stock Exchange over Christmas and New Year period.


How do I trade Ofex securities?

Ofex securities are traded just like other securities on the iDealing website. You can enter "at quote" market orders, however "limit" and "stop" orders are not currently available. Prior to trading an Ofex security for the first time you will be asked to acknowledge that you have read and understood information and risk warnings provided to you about Ofex.

Like other securities traded on the iDealing website, only Crest eligible Ofex stocks will be available to trade.


Settlement of Ofex transactions

Ofex transactions executed via iDealing.com will be settled electronically in Crest. Settlement is currently T+3.


Market Supervision

Ofex is a Prescribed Market for the purposes of Section 118 of the Financial Services and Markets Act 2000 and therefore subject to the UK market abuse regime. Ofex is required to provide an orderly market at all times and as such will monitor market activity.

Issuers and brokers using Ofex are subject to the Ofex Rule book and the City Code on Takeovers and Mergers within the scope of the Takeover Code and Substantial Acquisition Rules. We will cooperate with the Takeover Panel (the "Panel") in its enquiries which may require disclosing underlying customers details.


Suspension of Trading

A suspension can either be at the request of the Issuer Company concerned or its advisors, or at the instigation of Ofex. A suspension is usually instigated in order to ensure that a disorderly market in shares does not occur, although it could be for other reasons.

The maximum time period for a suspension to continue is six months, as stipulated by the Ofex Rule Book. After the six-month period has expired, the facilities of the Ofex market are likely to be withdrawn by Ofex.


Withdrawal of a Security from Ofex

The withdrawal of an Ofex security may mean that Ofex is no longer prepared to continue to provide the facilities of the Ofex market, and in turn the Market Maker is unable to continue to make a price in such securities with immediate effect. If Ofex withdraws a security it will make an announcement to explain why, in the absence of an announcement from the issuer itself.

Alternatively a withdrawal may mean that the security has been withdrawn at the request of the company who issued that security and that Ofex has been instructed by the issuer and/or its advisor to do so on/by a certain date. The last announcement by the issuer will usually clarify the reasons for the withdrawal, which may be in relation to the shares being moved to another market. Where a security has been withdrawn this will be indicated and the trading information frozen. The other information in relation to that security and the underlying issuer, will remain accessible on the Ofex website.

After a security has been withdrawn from Ofex, it is the responsibility of the company that issued the shares to make arrangements to ensure that its shareholders are fully informed at all times as to its situation and any plans it may have to ensure continuation of trading in the share via another market/mechanism.


Risk Warnings in relation to investing in unlisted and unquoted securities

The OFEX requirements for issuers applying to have their shares traded on OFEX, and therefore their continuing obligations, are not as high as for issuers whose shares are traded on a market or exchange (such as on a market regulated by an RIE or a DIE) where there are more onerous listing rules and continuing obligations. An investment in shares of an unlisted and unquoted company, i.e. issuer, is speculative and involves a degree of risk. It may also be difficult for an investor to sell or realise his or her investment.

Trade data published represents transactions carried out on OFEX through the Specialist members (market makers) or reported by other OFEX member firms to the Specialists, and then reported by the Specialists to OFEX. It should not be regarded as being representative of the sum total of trading activity in OFEX securities either generally or in relation to OFEX companies, as persons/organisations may have arranged to deal away from OFEX.

The price of any OFEX-traded securities and the income derived from them may go down as well as up and any past performance figures shown are not indicative of future performance. Current tax levels and reliefs may change and the value of any relief's depends on individual circumstances.

Due to the nature of the issuers and the OFEX market itself, it may prove difficult for an investor to obtain reliable information about the value of an investment, the prospects of a particular issuer and any particular risks that issuer of an investment may be exposed to.

In comparing the investments traded on OFEX you should bear in mind that the nature of such investments and the returns, risks and charges differ from one investment to another. Smaller companies with a short track record, by their nature tend to be higher risk than large well-established ones. The investments and services mentioned in this publication may not be suitable for all users. Issuers admitted to trading on the International Market Service are subject to listing application and continuing obligation rules of their home market, and are not subject to the regulations of the UKLA.