A second stock exchange competing with an established one changes very little for most small businesses and quite a lot for mid-sized listed companies, because competition on listing fees and trading costs is what an incumbent monopoly never has to offer. The new exchange’s proposition is a secondary listing: the same shares, tradeable in a second venue, at a lower cost.
Exchanges of this kind launch with a handful of issuers and a small group of approved brokers, then build the pipeline from there.
A secondary listing is a low-risk way to test a venue
A company keeping its primary listing while adding a second one takes almost no risk and gains an alternative trading venue and lower costs on the trades that migrate. That is why early adopters are established companies rather than new issuers, and it is how a new exchange builds credibility before anyone lists with it primarily.
Brokers determine whether an exchange functions
An exchange without brokers has nowhere for orders to come from. Launching with several approved and more in application is the meaningful indicator of viability, considerably more so than the number of listed companies.
Using existing settlement infrastructure lowers the barrier
Appointing the established central securities depository and working within the existing settlement structure means brokers do not have to build anything new to participate. Any business entering an established market should look for the equivalent: what can you plug into rather than replace.
Cost competition benefits companies below the largest tier
Listing and trading costs matter proportionally more to a mid-sized company than to a large one. A competing venue pressures those costs downward across the market, which is the main benefit and it reaches companies that never list on the new exchange at all.
Alternative venues are a route for smaller companies over time
Exchanges built with lighter technology and lower cost bases can eventually serve smaller issuers that a main board cannot accommodate economically. For a growing company considering public capital in future, the requirements of venues such as A2X Markets are worth understanding before you need them.
Frequently asked questions
What is a secondary listing?
The same shares listed on a second exchange alongside the primary one, giving an alternative trading venue without giving up the original listing.
Why do established companies adopt first?
Because a secondary listing carries almost no risk while providing lower trading costs, which is how a new exchange builds credibility.
What indicates whether a new exchange will work?
The number of approved brokers more than the number of listed companies, since an exchange without brokers has no order flow.
Why use the existing settlement infrastructure?
It means brokers need build nothing new to participate, which removes the main barrier to adoption.
Who benefits from exchange competition?
Mid-sized companies most, because listing and trading costs matter proportionally more to them, and the pressure on fees reaches the whole market.
Further reading
Originally published in October 2017. Updated September 2026 to explain what a competing exchange changes and for whom, rather than reporting an opening day.
