First Look: The Key Differences Between Exchanges and OTC Markets Every Investor Should Know

For global investors, High-Net-Worth Individuals (HNWIs), hedge funds, private equity firms, and family offices, the financial markets offer an evolving landscape of opportunities. From the transparency and reliability of exchanges to the flexibility of over-the-counter (OTC) markets, understanding these platforms can unlock new growth avenues.

The Appeal of Exchanges for Institutional Investors

Exchanges like the Astana International Exchange (AIX) provide a centralized platform that fosters trust and confidence among global investors. With AIX’s cutting-edge Nasdaq technology and international framework, participants gain access to robust liquidity, transparent pricing, and regulatory safeguards.

Statistics Highlighting Exchange Advantages

• $6.7 billion capital raised on AIX since inception, with $2 billion in 2024 alone.
• A 4x increase in trading volumes on AIX in 2024 compared to 2023.
• Over 50 trading members, including major institutions from Kazakhstan, the UAE, China, and Europe.
• Instruments offered in multiple currencies, enhancing global accessibility.

Exchanges are particularly appealing for investors seeking scalable and liquid opportunities, such as large equity and debt issuances, while benefiting from strict regulatory oversight.

The OTC Market: A Flexible Gateway

OTC markets cater to investors and issuers seeking niche opportunities or lower entry barriers. While less regulated, OTC markets offer access to exotic securities, emerging startups, and customized investment products.

Global OTC Insights

• The OTC market handles over 10,000 securities globally.
• Many foreign companies use OTC markets for American Depositary Receipts (ADRs), offering U.S. investors exposure to international firms.
• Derivatives traded OTC account for a substantial portion of the $640 trillion global derivatives market, per the Bank for International Settlements (BIS).

Exempt Funds on AIX: A Strategic Advantage

Exempt Funds provide a powerful opportunity for institutional investors. Designed for professional participants, these funds enjoy reduced regulatory burdens while maintaining the trust associated with a regulated exchange.

Key Benefits of Exempt Fund Listing on AIX:

1. Streamlined Regulatory Requirements: Exempt Funds face fewer compliance hurdles compared to public funds, making operations more agile.
2. Transparency and Trust: Listing on AIX ensures investor confidence through reliable reporting and governance standards.
3. Global Accessibility: AIX's international framework attracts a diverse pool of professional investors.
4. Reduced Administrative Overhead: The KYC process is broker-managed, minimizing compliance burdens for fund managers.

Emerging Opportunities

For institutional investors, private equity firms, and HNWIs, the combination of exchange-based offerings and OTC flexibility provides avenues to:

• Access pre-IPO opportunities through Exempt Funds.
• Invest in innovative sectors like blockchain and green technology.
• Leverage global liquidity while maintaining portfolio diversification.

Neomarkets: Your Partner in AIX Listings

At Neomarkets, we can support you in facilitating Exempt Fund listings on AIX. With expertise in regulatory navigation, offering material preparation, and compliance, we empower fund managers to unlock AIX's full potential.

If you're ready to explore opportunities in one of the world's most dynamic financial hubs, reach out to me today for a consultation. Together, we can shape the future of your investments.

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Anthony Chernykh

Chief Business Officer at Neomarkets Group

Investor Relations Head | Fiduciary in Capital Raising | Network Expansion for Family Offices and Funds

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