It’s rare that the best performing stock is an alternative exchange listed on the main bourse – but with the NSX’s (ASX:NSX) surge this morning, that’s just what happened.

The NSX more than doubled today on the ASX (ASX:ASX). This followed the release of its quarterly cash flow report along with a company update yesterday evening.


Taking things to the next level

The NSX has spent the past couple of years building up its investor base, listee companies and digital capabilities to be an alternative market to the ASX.

The selling point has been lower costs and smaller regulatory burdens while still providing liquidity you wouldn’t get staying private. While liquidity has been difficult to sell in previous years, volumes have substantially increased this year.

While the NSX spent some years just wanting to be the secondary market, similar to London’s AIM, that’s changed since ISignThis (ASX:ISX) boss John Karantzis bought an 18 per cent stake.

His regtech company has been suspended from the ASX for over a year now after the ASX launched an inquiry into its operations. The parties have been irreconcilable ever since.

In retaliation, he is not only trying to list on the NSX but has been pitching the market as a rival to his nemesis, the main bourse, ever since.

Tellingly one update today was that the NSX’s exchange sub-register system would be integrated with ISignThis’ (ASX:ISX) Paydentity system.

The NSX said this would help market participants comply with AML/CFT regulations.

Two further technological rollouts were inked in and revealed to shareholders this morning.

First, it would gain access to the ASX clear monopoly on a commercial basis – scheduled on November 23. Second, it would introduce blockchain technology into its digital exchange sub-registered system.

NSX shareholders were told the bourse would be one of the world’s first Tier 1 exchanges to record transactional trading data to the blockchain.


Improved outlook

In its quarterly, the NSX told shareholders its outlook had improved substantially.

In addition to the imminent tech upgrades, it noted increased broker and investor interest as well as rising revenues.

30 applicants are in the forward pipeline and it has $5 million in cash at bank. The company recorded a net cash inflow of $450,000.

NSX shares lagged since the March crash but are now in positive territory in 2020. After surging as high as 245 per cent in early trade, shares settled at 147 per cent higher by 11am.

NSX (ASX:NSX) share price chart