Aquis Exchange Plc (AQX) 2024年年度報告「LSE」.pdf

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1、1Aquis Exchange PLC Report and Accounts 2024Report&Accounts20241Aquis Exchange PLC Report and Accounts 2024Introduction2 Highlights of the Year 20244 Group at a Glance6ChairmansStatement9ChiefExecutivesReportStrategicReport12StrategicReport33DirectorsReport40 Board of Directors and Management Team44

2、 Audit,Risk,and Compliance Committee Report 46 Nomination and Remuneration Committee Report47DirectorsNominationandRemunerationReport50DirectorsRemunerationPolicyFinancialStatements66IndependentAuditorsReporttotheMembersofAquisExchangePLC76Consolidatedandcompanystatementsofcomprehensiveincome77Conso

3、lidatedandcompanystatementsoffinancialposition78Consolidatedstatementofchangesinequity79Companystatementofchangesinequity80ConsolidatedandcompanystatementsofcashflowsNotestotheFinancialStatements82NotestotheFinancialStatementsContents2Aquis Exchange PLC Report and Accounts 2024GrossRevenueAdjustedPr

4、ofitBeforeTax*Basic(Loss)/EarningsperShare(2023:23.7 m)(2023:5.2m)(2023:19p)(2023:19p)(2023:22.7m)(2023:5.2m)NetRevenue(Loss)/ProfitBeforeTaxDiluted(Loss)/EarningsperShareHighlightsoftheyear202423.81.1(9)(9)20.1(2.2m)mmmpp*AlternativePerformanceMeasureshavebeenusedtoensurecomparabilityoffinancialinf

5、ormationbetweenreportingperiods.Thesefinancialreportingprocedureshavebeendescribedinfurtherdetailonpage22oftheStrategicReport.3Aquis Exchange PLC Report and Accounts 2024AyearofconsolidationDespite continuing macroeconomic challenges,Aquiscontinuedtoexecuteonanambitiousstrategy,achievingkeymilestone

6、sinalldivisions.IncreasingmarketshareThelaunchofconditionalordersearlyin2024andsubsequentfastgrowthinuseoftheproducthelpedcontributetoanincreasedmarketsharefortheyear,up 0.25%on 2023.TechnologypipelinecontinuestoimproveContinuedinterestinAquisTechnologiespioneeringexchangetechnology,withastronglate-

7、stagesalespipeline including several national exchanges.RisinglevelsoftradingandfundraisingontheAquisStockExchangeAquisStockExchangedeliveredstronggrowthintradingvolumesalongwiththehighestlevelsofsecondaryfundraisingsinceacquisition,despitethecontinuingUK-widedepressedlevelsofprimarylistings.Marketd

8、atagrowsFurthergrowthinmarketdatarevenues,followingafullyearofmemberdatafeesandtheonboardingof5newclients.RecommendedCashOfferforAquisExchangebySIXGroupAGDuringtheperiod,theboardsofSIXandAquiswerepleasedtoannouncethattheyhavereachedagreement on the terms of a Recommended Cash Offer(“the Recommended

9、Offer”)for the entire issued andtobeissuedordinarysharecapitalofAquis.MoreinformationontheRecommendedOfferisavailableatwww.aquis.eu/investors/offer-documentation.4Aquis Exchange PLC Report and Accounts 2024GroupataGlanceAquis Exchange PLC isEuropeschallengerexchange,creatingbettermarkets for a moder

10、n economy.Netrevenues(m)20180510152025201920202021202220232024MarketsTechnologiesDataAQSERevenuessinceIPOINTRODUCTION5Aquis Exchange PLC Report and Accounts 2024dataAquisMarkets operates lit and dark order books,covering16Europeanmarkets.Foritslitbooks,Aquisusesasubscriptionpricingmodelwhichworksbyc

11、hargingusersaccordingtothemessagetraffictheygenerate,rather than a percentage of the valueofeachstockthattheytrade.AquisStockExchange(AQSE)is a stock marketprovidingprimaryandsecondarymarketsforequityanddebtproducts.Itis authorised as a Recognised Investment Exchange,whichallowsittooperatearegulated

12、listingsvenue.TheAquisGrowthMarketisdividedintotwosegments,AccessandApex,withdifferentlevelsofadmissioncriteria.The Access market focuses on earlier stagegrowthcompanies,whileApexistheintendedmarketforlarger,moreestablishedbusinesses.AquisTechnologiesisthesoftwareandtechnologydivisionofAquis.Itfocus

13、esonbuildingbettermarketsviathecreationandlicensingofcutting-edge,cost-effectiveexchangeinfrastructuretechnologyandservices,including matching engine and trade surveillance solutions.AquisData generates revenue from the sale of data derived from Aquis Markets and AquisStockExchange.6Aquis Exchange P

14、LC Report and Accounts 2024Chairs StatementItwaswithgreatpleasurethatIassumedtheroleofChairofAquisExchangePLC(AQXE)in2024,andIampleasedtobereportingayearof strategic progress.Thankyoutomypredecessor,GlennCollinson,for his prior leadership of the Board.During2024,Aquisbenefitedfromthediversifiednatur

15、eofitsbusinesses,withkeymilestonesreachedacrossalldivisionsandsignificantprogressmadetowardsstrategicobjectives,despitethecontinuedchallengesoftheeconomicandmarketsbackdrop.Overall,grossrevenueremainedflatat23.8m,withnetrevenuesdecreasingduetoincreasedcreditprovisionsagainsttwotechnologycontractsasw

16、ellasthenon-renewalofacontractwithastart-upexchange.Overview2024wasanimportantyearforAquis,aswecontinuedtofacilitateandoperatebettermarketsforamoderneconomyintheUKandacrossEurope.TheGroupcontinuedtomakeprogress,underpinnedbystrategicdevelopmentineachofourfourbusinessactivities:Markets,Technology,Dat

17、aandtheAquisStockExchange.Thestrategicprogressofthebusinessisparticularlynoteworthygiventhedifficultconditionswhichtheeconomicandmarketsenvironmentshavefacedsince2021,whichshowedlittleimprovementoverthe period.Grossrevenuefortheyearwasbroadlyflatwitha 0.3%increase on 2023 to 23.8m and adjusted profi

18、tbeforetaxfallingto1.1m.Buildingon2023performance,strategicmilestonesweremetacrossalldivisionsandrevenuewasparticularlystronginAquisMarkets,withincreasingcontributionsfromtheAquisdarkpool(AMP)andthenewconditionalordertype,aswellasincreasedrevenuefrommarketdatafollowingafullyearofchargingmembers.Weco

19、ntinued to develop our presence in Europe and enhanceclientrelationshipswithintheEU27markets.BoardandGovernanceJonathan Clelland retired from the Board in April 2024,asplannedandpreviouslyannouncedinthe2023report.GlennCollinsonsteppeddownfromtheBoardforpersonalreasonsinNovember2024,atwhichpointIwasa

20、ppointedtothepositionofChair.Followingthischange,IsteppeddownfromtheAudit,Risk&ComplianceCommitteeandRuthWandhferjoinedthe Nominations and Remuneration Committee.InFebruary2025,ChiefExecutiveAlasdairHaynesmadethedecisiontostepawayfromfull-timerunningofthebusinessduetohealthreasons.Iwouldliketotaketh

21、isopportunitytothankAlasdairfortheenthusiasmandvisionwithwhichhefoundedAquisandledthecompanyfor13years,andIamdelightedtohaveAlasdairremainingwithAquisastheGroupPresidentandontheBoardasaNon-ExecutiveDirector.TheBoardwaspleasedtoappointDavidStevens,theGroupspriorChiefOperatingOfficer(COO),into the CEO

22、 role and to see the positive receptionbythebroaderbusiness.Inadditiontohisrole as Chief Financial Officer,Richard Fisher has assumed the role of COO.WebelievetheBoardisscaledappropriatelytomeettheopportunitiesahead,however,wewillcontinuetomonitorcloselytheskillsandexperienceoftheBoardtoensurethatwe

23、areabletosteerthebusinesstocontinuetodeliveronallaspectsofitsstrategy.INTRODUCTION7Aquis Exchange PLC Report and Accounts 2024Culture,StakeholderEngagementandSection172DutiesTheBoardcontinueditsengagementwithkeystakeholders,particularlyfocusingonemployeesandshareholders.Executivemanagementmeetwithth

24、ekeyshareholdersatappropriatetimesduringtheyearandprovidefeedbacktotheBoard,andI,andpreviouslyGlennCollinson,andtheChairoftheNomination&RemunerationCommitteecontinued,wherepossible,toengagewithshareholdersthroughone-on-onemeetings.Shareholdershavebeenappreciativeofthesemeetingsandfeedbackisprovidedt

25、otheBoardinbothwrittenandverbalupdates.Aquis promotes a positive and inclusive culture.Team meetingsandGroupbriefingsareheldonaregularbasistoensureallpersonnelareinformedoftheGroupsperformanceandkeystrategicobjectivesandgoals.Staffareencouragedtocontributetoamonthlyemployeeengagementpulsesurvey,whic

26、hallowsemployeestoprovidefeedbackinconfidence,theresultsofwhichwereconsistentlypositiveduringtheyear.TheExecutiveteamdevelopsanactionplantoaddressthekeyareashighlightedwithparticularemphasis on our core values,listed later in this report,andoninvestingfurtherinemployeetrainingandcareer development.E

27、nvironment,SocialandCorporateResponsibilityFromtheoutset,Aquishasbeencommittedtoimprovingtheefficiencyofmarketsthroughtransparencyandinnovation.Inaddition,weaimtostimulategrowthintheeconomybylisteningto the needs of issuers and creating a supportive,fairandlow-costenvironmentforcapitalraiserstolisti

28、nstruments,particularlyforinnovativeyoungcompanies.TheseinitiativeshavewidecorporateandsocialbenefitsinadditiontohelpingtobuildAquisbusiness.WecontinuetomakeprogressonourESGplansbymeasuringourcarbonfootprintandhavesetatargettoreduceourenvironmentalimpact.Inaddition,wecontinuedourfinancialliteracycom

29、munityprojectandincreased our staff engagement efforts,reflecting the continuedgrowthoftheorganisation.DetailsoftheseinitiativesandworkplacecultureawardrecognitionaresetoutintheStrategicReportonp18.OurBoardin2025comprisesthreewomenandfivemen.WewillcontinuetobuildthebestteamsatAquisirrespectiveofpeop

30、lesgender,religion,ethnicityoranyotherfactorthatisnotrelevanttothejobinhand.WeusetheGenderPayGapmeasureasanobjectivewayofmeasuringtheleveloffemaleseniorityinthecompany.Weremaincommittedtofurtherimprovingthemeasureoffemaleseniority;in2024thiswas16%onbasesalaryand19%onbasesalaryplusannualbonus,animpro

31、vementon20%and23%respectivelylastyear.Ourtargetremainstobemateriallybetterthan the average in UK financial services(25.1%)on this measure.8Aquis Exchange PLC Report and Accounts 2024TheRecommendedOfferOn11November2024,wewerepleasedtoannouncethatAquishadreachedagreementwithSIXExchangeGroupAG(“SIX”)on

32、thetermsofarecommendedcashoffertobemadebySIXtoacquirethewholeoftheissuedandtobeissuedsharecapitalofAquis(the“RecommendedOffer”),tobeimplementedbywayofacourt-sanctionedschemeofarrangementunderPart26oftheCompaniesAct2006(the“Scheme”).TheSchemeDocumentcanbeviewedat www.aquis.eu/investors/offer-document

33、ationTheSchemeremainssubjecttothesatisfaction(orwaiver,whereapplicable)ofcertainconditions,includingthereceiptofcertainregulatoryapprovalsandsubsequentsanctionoftheSchemebytheHighCourtofJustice;fulldetailsoftheconditionscanbefoundinPartIIIoftheSchemeDocument.Presently,Aquishasobtainedalloftheapprova

34、lsrequiredtosatisfytheantitrustconditions.Theremainingconditions,whichrelatetoregulatoryapprovals,areexpectedtobesatisfiedinQ22025,andtheSchemeremainsexpectedtobecomeeffectiveinQ22025and,inanyevent,priorto11November2025.Followingsatisfactionoftheoutstandingregulatoryconditions,anupdatedtimelinewithe

35、xpectedprincipaldateswillbenotifiedtoshareholdersbyannouncementthroughtheRegulatoryNewsService.OurfocusfortheyearaheadWeareconfidentthatwehavetheresourcesandtechnologytosupportfurthergrowthacrossallourbusinessactivitiesandwewillcontinuetoinvestinordertomaintainthistrajectory.DeirdreSomersChairChairs

36、 Statement(contd.)9Aquis Exchange PLC Report and Accounts 20242024wasayearofstrategicprogressforAquiswithgrossrevenuesof23.8m,a0.3%increaseon 2023.Chief Executives ReportOverviewThisstrategicprogresswasachieveddespitecontinuingeconomicheadwindsthroughouttheyear,andfactorslikepoliticalchange(bothinth

37、eUKandabroad),interestandinflationratesimpactingonmarketconditionsandprimarymarketissuances.Adjustedprofitbeforetaxdecreasedby4.1mto1.1mduetoincreasedcreditprovisionsagainsttwotechnologycontractsaswellasthenon-renewalofacontractwithastart-upexchange.However,Aquisbenefitedfromthediversifiedproductoff

38、eringsofitsfourdivisions,withgrowthintheMarketsandDatadivisionsoffsettingaflatyearfortheAquisStockExchange and a decline in revenues for the Technologies divisionfollowingastrong2023andtheadjustmentinECL provisions.All four divisions made significant progress againstthestrategyovertheperiod,andIampl

39、easedwiththetrajectoryofeachandcontinuedstrengthofourprincipalbusinessactivities.Aquisbalancesheetremainsstrongandthebusinessiswell-capitalisedforfutureopportunities.AquisMarketsOvertheperiod,thesecondarymarketmultilateraltradingfacility(MTF)platformsoperatedbytheGroupinLondonandPariscontinuedtogrow

40、despitechallengingeconomicandregulatoryconditions,underpinningtheresilienceofthesubscriptionmodel.Divisional revenue increased to 11.8m,up 7.8%.Aquis had a 5.11%share of total trading on exchange in2024,andendedDecemberwithamarketshareof5.22%:a0.25%increaseyear-on-year.Inearly2024,welaunchedconditio

41、nalordersandsubsequentlysawsignificantgrowthinthisproduct overthecourseoftheyear.Itnowhas10usersandset analltimerecordaveragedailyvalueinNovember 2024 of 72m.Throughouttheyear,wemadeenhancementstotheexisting Auction on Demand product and continued to seehightradingvolumesintheMarketatClose(MaC),with

42、anewrecordMaCADVof769msetinJune2024.AnincreasetotheMTFstockuniversenowallowsclientsto trade more than 6,500 stocks and ETFs across 16 Europeanmarkets,andmembersarealsonowabletouseOptimXblotterscrapingfunctionality.AquisTechnologiesAquisTechnologies,whereAquislicensesitsleadingexchangerelatedtechnolo

43、gytoavarietyofinternationalfinancial services clients across different asset classes,sawadeclineinnetrevenueovertheperiodby74.9%(to1.6m)followingastrong2023,duetoincreasedcreditprovisionsagainsttwotechnologycontractsaswellasthenon-renewalofacontractwithastart-upexchange.InaccordancewithAquisaccounti

44、ngpolicies,management increased its ECL provisions in respect of twoexistingtechnologyclients,reflectingaheightenedcreditrisk.Aquisremainsfocusedondiversifyingitstechnologyclientmixandtherewasstronggrowthinthedivisionscontractpipelineovertheperiod-increasingmateriallytostandatrecordlevels.Thedivisio

45、nsclientprofilecontinuestostrengthen,withmorethanhalfoftheprospectsbeingnationalexchangesorcentralbanks.Thedivisionsignedonenewcontractduringtheperiod,renewedonecontractandsawonenon-renewalofanexisting contract.TheprofileandawarenessofAquisTechnologiesalsocontinuestorise,andthedivisionwasawardedBest

46、Matching Engine for Exchanges and Electronic Trading Venuesatthe2024TradingTechInsightAwards(bothEuropeandUS).10Aquis Exchange PLC Report and Accounts 2024Post-periodend,AquisTechnologieswaspleasedtoreachthedesignstudystageforanationalexchangegroup,forwhichithasbeenparticipatinginanRFPprocessforprov

47、isionofexchangetechnologyacrossmultiplemarketssinceearly2024.ThisstageoftheRFPprocessisexploratory,andinvolvessuchactivitiesasidentifyingscopeofwork,exploringandtestinghardwarerequirements,ITsystemintegrationarchitectureandsoftwarecapability.AquisDataDatarevenuesincreasedby33.3%toreach5.0m(2023:3.7m

48、),reflectingafullyearofchargingmemberdatafeesalongwiththeadditionoffivenewcustomers.Aquiscontinuestobenefitfromincreasedrecognitionofthequalityandcompetitivepriceofourmarketdata.Inadditiontothecontributiondatabringstotheresults,managementbelieveinthemedium-termitwillincreasefurtherinimportancewhenco

49、nsolidatedtapesfortheUKand Europe are implemented.Implementationtimetablesfrom2026havebeenannouncedanditiswidelyrecognisedandacceptedthat introducing consolidated tapes for equities should improvethequalityandpricingofmarketdataandleadtoafairerdistributionofdatafeesacrossthevariousEuropean trading v

50、enues.AquisStockExchange(AQSE)TheIPOmarketremainedsubduedovertheperiod,withlowadmissionnumbersonallUKmarkets.However,wearepleasedtohavewelcomedthreenewissuerstotheAquisStockExchangein2024,andtoseefiveissuersgraduating from Access to Apex after achieving the requisite size and corporate governance re

51、quirements.Thedivisionsrevenueremainedflat(-0.2%)comparedto2023,at1.8minbothyears.Manyoftheimprovementswehavemadeoverthepastthreeyearstoaidaccessandliquidityontheexchangearebeginningtobearfruit.118mwasraisedbyissuersovertheyear(anincreaseof27%onthe93mraisedin2023),with22fundraisesexceeding1manda39%i

52、ncreaseinthetotalvalueoffurtherissues-arecordyearforAQSEsinceacquisition.Therewasalsoanimprovementintrading,witha21%increase in the value of trading to over 177m.Wecontinuetobeenthusedbytheopportunitytobuildapan-European,technology-drivenlistingexchangeforgrowthcompaniesandbelievewewillbewellpositio

53、nedwhenmarketconditionsstarttoimprove.FurtherInvestmentinResearchandDevelopment(R&D)AquiscontinuedtoinvestinR&Dthroughout2024inordertomaintainandenhancethequalityofourtechnologyanditsabilitytodelivernewproductsandplatformenhancements to our clients.Ourproventradingplatformhasbeendevelopedin-houseand

54、isbasedonproprietarytechnology,whichdoesnotrelyonthirdpartysoftwaresuppliers.IbelievethiscommitmenttocontinuedinvestmentinR&Dgivesusasignificantcompetitiveadvantageonfunctionality,priceandabilitytodeliver.TheorganisationofAquistechnologydepartmentensuresexpeditiousproductdevelopmentand,togetherwithA

55、quisfurtherinvestment,willallowtheGrouptoreactquicklytodynamicmarketconditions.Weintendtocontinuetoworkonfurtherdevelopmentswhichwillfosterfuturegrowth.ResourcesDuring2024,wecontinuedtoinvestinpersonnelresourcesacrossanumberofdepartmentswithheadcount across the London and Paris offices increasingby1

56、9%to88(FY23:74).Weintendtofurtherstrengthenourteam,particularlyinsupportoftechnologydevelopment and infrastructure.TheRecommendedOfferOn11November2024,theboardsofSIXandAquiswerepleasedtoannouncethattheyhadreachedagreement on the terms of the Recommended Offer.The Aquis Directors have concluded that

57、the terms of the Recommended Offer provide Aquis shareholders withanattractiveopportunitytoaccelerateandde-risk future value creation,and thus,the Aquis Directors recommendedunanimouslyinfavouroftheScheme.Chief Executives Report(contd.)INTRODUCTION11Aquis Exchange PLC Report and Accounts 2024TheSche

58、meremainssubjecttothesatisfaction(orwaiver,whereapplicable)ofcertainconditions,includingthereceiptofcertainregulatoryapprovalsandsubsequentsanctionoftheSchemebytheHighCourtofJustice;fulldetailsoftheconditionscanbefoundinPartIIIoftheSchemeDocument.Presently,Aquishasobtainedalloftheapprovalsrequiredto

59、satisfytheantitrustconditions.Theremainingconditions,whichrelatetoregulatoryapprovals,areexpectedtobesatisfiedinQ22025,andtheSchemeremainsexpectedtobecomeeffectiveinQ22025and,inanyevent,priorto11November2025.Outlook2024wasanimportantyearforAquis,anddespitedifficult conditions I am proud of the achie

60、vements of our teamacrossmarketshare,technologyinnovations,newcontractsandstrengtheningoftheprimarymarket.WeremainconfidentinAquisuniquepropositionandourabilitytocreateandfacilitatebettermarketsforamoderneconomy.WewillalsocontinuetopromotetheAquisvaluesoftransparency,fairnessandsimplicity,enablingou

61、rendcustomerstogetbetterperformanceandresults.Our principal aim in the near future is to deliver the completion of the Recommended Offer.Ourhighlycapableandexperiencedmanagementteamremainsfocusedonservingourclientsaswecapitaliseon the opportunities ahead.DavidStevensChief Executive Officer12Aquis Ex

62、change PLC Report and Accounts 2024Strategic ReportSTRATEGIC REPORT13Aquis Exchange PLC Report and Accounts 2024OverviewofthebusinessAquisExchangePLC(AquisortheCompany),istheprincipaloperatingcompanyandtheholdingcompanyoftheAquisexchangeactivities(theGroup)whichoperatesfourprincipalbusinesslines:Mar

63、kets,Technologies,AquisStockExchange(AQSE)andData.Markets operates from London and Paris and is a pan-Europeanmultilateraltradingfacility(MTF)operatorthatprovidessecondarymarkettradinginpan-Europeanstocksthatarelistedonotherexchanges.Technologiesprovidesexchangeandregulatorytechnologytothirdparties.

64、AquisStockExchangeoperatesaprimarymarketforsmallandmediumsizeissuersandsecondarymarkettrading in those stocks.Data:theprovisiontoclientsofproprietorialprimaryandsecondarymarketdata.TheCompanyandAQSEareregulatedbytheUKFinancialConductAuthority(FCA),whileAQEUisregulatedbytheAutoritdeContrlePrudentiele

65、tdeResolution(ACPR)andtheAutoritdesMarchsFinanciers(AMF).The Group has made significant progress in the development of its activities since the IPO in June 2018 andiswellpositionedtoberecognisedasoneoftheleadingtechnology-led,internationalexchangesdrivingimprovedtransparencyandfairnessinthesecuritie

66、s trading market through the introduction and enhancementofcompetitionandinnovation.WiththeseguidingprinciplestheGroupsmainfocusisto:Capitaliseonregulatoryandtechnicalshiftsinmarketinfrastructurebyprovidinganexchangewhichoffersdeeperliquidityandtransparencytogetherwithhigherqualityexecutionforinterm

67、ediariesandinvestors;ContinuetoincreasethenumberofmembersofAquisMarketsandassociatedtradingvolumesbyprovidingarobustandinnovativeplatformthatrespondstotheirneeds;Licenseitsproventechnologyplatformtothirdpartiesthatrequirecutting-edgetradingormarketsurveillancetechnology;and Positivelyaddressthecurre

68、ntmarketissuesoflargespreadandlowliquidityinsmallandmid-captradingthroughAQSEsRIEstatus.The trading platform for all Group entities is run on the sametradingtechnologyandAquisMarketsapplies,for a significant proportion of all transactions executed,auniquesubscription-basedpricingmodelbasedonelectron

69、ic messaging traffic for the lit market.This means that the dealing price prior to the trade istransparenttothewholemarket.Thisisincontrasttopricingondarkandgreymarkets,wherepricediscoveryisonlyavailabletothemarketpost-trade.ForAMP(the Aquis dark pool market),clients are charged a percentage of the

70、value of each transaction.RecommendedCashOfferbySIXGroupAGDuringtheperiod,theboardsofSIXandAquiswerepleasedtoannouncethattheyhavereachedagreement on the terms of a recommended cash offer(theRecommendedOffer)fortheentireissuedandtobeissuedordinarysharecapitalofAquis.WhilsttheAquisDirectorsareconfiden

71、tinthegrowthpotentialineachofAquisdivisions,theyrecognisethattheEuropeanexchangemarketremainshighlycompetitive and requires ongoing investment in technologyanddistributionagainstwell-resourcedpeersoperatingwithgreaterscale.Aquisfuturegrowthispredicatedonanincreaseinnewtechnologyclientsalongwithreten

72、tionofexistingclients,anincreaseinEuropeanequitymarketvolumesandissuers,and the timing and impact of a European ConsolidatedTape,whichareuncertainandcontainanelementofvolatility.TheAquisDirectorsbelievethatAquiscouldrealisethefullpotentialofitscurrentstrategyonastandalonebasisinthemediumtermbutrecog

73、nisesthatthereareoperational,commercial and market risks associated withthetimingofdeliveryoffuturevalue.The Aquis Directors assessed the Offer in this context.Followingcarefulconsideration,theAquisDirectorshave concluded that the terms of the Recommended OfferprovideAquisshareholderswithanattractiv

74、eopportunitytoaccelerateandde-riskfuturevaluecreation and realise certain value of their holdings todayincash.More information on the Recommended Offer is availableat www.aquis.eu/investors/offer-documentation.14Aquis Exchange PLC Report and Accounts 2024StrategicReport(contd.)ClientsandCompetitiveL

75、andscapeTheclientbaseofAquisMarketsconsists,principally,ofinvestmentbanksandbrokersactingonbehalfofinstitutions such as pension funds,asset managers and retailbrokerstoexecutetheirordersand,inthecaseofAQSE,itincludestheissuerswhowishtoraisecapitalon the platform.TheprincipalcompetitorstoAquisbusines

76、saretheincumbentnationalexchangesandotherpan-European trading venues.During 2024,Aquis Markets improved its overall market share to an average 5.22%and introduced the conditionalordertype.ThediversifiedproductofferingfollowingthelaunchoftheAquisMatchingPoolandsubsequentnewordertypesmeansthatthisbusi

77、nessiswellpositionedtobenefitfromfurtherproductdevelopmentandanyfutureregulatorychanges.TheinstitutionalsupportforgreatertransparencyinEuropeanequitiestradingalsosupportsfuturebusinessgrowth.Weareastrongsupporteroftheregulatoryprinciplessuchasbestexecutionandgreatertransparencyformarketsthathavebeen

78、introducedandwearecommittedtocomplyingwithmarketregulation.WebelievethatwearewellplacedtomanageanyregulatorydivergencebetweentheUKandEUgivenourrobustandagilebusinessmodel,ourleancoststructureandourtechnologyleadership.Forthegrowthandscale-upcompaniesonAQSE,webelievethatwehavetherightbalanceofmaintai

79、ningtheappropriateregulatoryoversight,whilstnotbeingover-bearing.WedonotoperateregulationthroughNOMADs,preferring that the Boards of the companies havealargerroleensuringcompliancewithregulatoryresponsibilities.AquisTechnologiesmatchingengineandsurveillancesystemshavebeenoperatingsuccessfullyforanum

80、berofyears.Thematchingenginehasbeendevelopedformulti-assetclasstradingandisattractingcustomerswishingtolicensethetechnologyasthetradingengineforabroadrangeofinstruments.AquisTechnologiesprincipalcustomersareincreasinglynationalexchangesandcentralbanks,alongwithnewequitytrading venues,MTF operators a

81、cross asset classes and market participants requiring real time market surveillance.Aquis is the operator of Equinox(launched 2023),theworldsfirstregulatedmarket-grade24x7matchingenginewhichneverrequiresshutdownordowntime.CompetitorsofAquisTechnologiesareothermatchingengineprovidersandsurveillanceso

82、ftwareproviders.KeyPerformanceIndicatorsAsagrowthcompany,theKeyPerformanceIndicators(KPIs)fortheGroupareprincipally(i)thecontinuedgrowthinrevenue(SeethetablebelowshowingGroupRevenue)andalso(ii)thecontinuedgrowthinthe Adjusted Profit Before Tax(PBT).The Adjusted Profit Before Tax is an Alternative Pe

83、rformance Measure whichhasbeenintroducedtoreflecttheunderlyingperformanceoftheGroupwhenexcludingtheimpactof exceptional costs incurred for the Recommended Offer.FurtherinformationonAdjustedPBThasbeenincluded on page 22 of this report.InbuildingouttheseKPIssignificantfocusismadetothekeydriversofreven

84、ueandprofitability.Thedeliveryagainst these principal KPIs is fundamental to the success of the Group.InsupportoftheseKPIs,theBoardhasestablished,fortheseniorExecutives,clearfinancialandnon-financialobjectivesfortheGroup.For2024thefinancialKPIswerebasedontargetnetrevenueandprofitbeforetaxation.Theno

85、n-financialKPIsweremarketshareanddiversificationofpan-Europeansecondarymarkettrading,leadership and resource development,sustainabilityandcompliancewithregulationsandcontinuedgoodcorporategovernance,withclear,objectiveperformancemeasurementagainsttargetssetbytheBoard.Financialobjectivesrepresent70%a

86、ndnon-financial30%ofthetargets.Furtherdetailsare given in the Remuneration Report on page 48.STRATEGIC REPORT15Aquis Exchange PLC Report and Accounts 2024The Group generated an Adjusted Profit Before Tax of 1.1mcomparedto5.2minthepreviousyear.AreductioninAdjustedPBTisexplainedbyincreasesinExpected C

87、redit Loss provisions against Contract Assets andTradeReceivablesbalancesby3.7mand0.6m,respectively.Oftheseamounts,3.0mofContractAssetand0.6mofTradeReceivableimpairmentsreflectedaheightenedriskofdefaultfortwoexistingtechnologycustomers.Adjusted Profit Before Tax excludes exceptional costs of 3.3m in

88、curred for the Recommended Offer,and have beenincludedintheLossBeforeTaxof(2.2)m(2023:Profit of 5.2m).The Loss Before Tax includes amortisation charges tointernallygeneratedintangibleassets,aswellasdepreciationandfinancecharges,whichreflecttheaccountingtreatmentofleasesunderIFRS16andothertangiblefix

89、edassets.ThetotaldepreciationandamortisationcosttotheGroupincreasedby0.3mto1.7m(2023:1.4m)becauseofcontinuinginvestmentintheGroupstechnologicalcapabilities.The Group generated an income tax charge of 235k(2023:creditof8k)whichwasaresultoftaxableprofitsprovidedintheforeignsubsidiary.Therewasnochangei

90、ntheamountofnetdeferredtaxasset(2023:increase of 191k).NetassetsoftheGroupasat31December2024were25.8m(31December2023:28.4m),largelyreflectingcashoutflowsforexceptionalcostsandanincreasein ECL provisions against Contract Assets and Trade Receivables.Revenuefromlicensingtechnologycontractsissubjecttoa

91、provisionunderIFRS9forExpectedCreditLosses.For2024theapplicationofIFRS9resultedinanetimpairmentprovisionchargeof3.7m(2023:1.0m)recognisedintheIncomeStatement,includinganincreaseinprovisionsagainsttwoexistingcustomersfor 3.0m.Tradereceivablesbalancescontainedprovisionsof0.8mintheyear,ofwhich0.7mrelat

92、edtobalancesoutstandingbythesametwotechnologycustomers,forwhichachargeof0.6mwasrecognisedintheyear.Balancesheetliabilitiesincludedprovisionsof0.3mrecognisedin2024fordisputeswithtwodatavendorsover historical fees.TheleaseliabilitiesarisingfromtheGroupsofficeleases are paid over the lease term,and att

93、ract a finance expense amounting to 84k for 2024.The associated right of use assets are depreciated on a straight-linebasisoverthelifeofthelease,andattracta depreciation charge of 383k for 2024.FinancialReview2024sawbroadlyflatgrossrevenues,withthecompanybenefittingfromthediversifiedproductofferings

94、betweendivisions.Thebreakdownofrevenuesisasfollows:20242023YoYGrowth%RevenueanalysedbydivisionMarkets11,775,89210,919,2637.8%Technology5,264,6397,298,157-27.9%StockExchange1,768,0771,771,284-0.2%Market Data4,963,4073,722,23733.3%23,772,01523,710,9410.3%16Aquis Exchange PLC Report and Accounts 2024St

95、rategicReport(contd.)TheGroupscashandcashequivalentsasat31December2024decreasedto13.7m(2023:14.8m),includingpaymentofexceptionalcostsamountingto3.0m.Thecontinuedgrowth(whenexceptionalcostsareexcluded)demonstratestherobustcashgenerationofcontinuingbusinessactivitiesintheGroup.OvertheyeartheGrouppurch

96、ased1.5moftreasurysharesusedtoserviceemployeeshareschemes.Groupinvestments,productivityandcapitalmanagementTheGroupcontinuedtoinvestinitstechnologyoffering,including the creation and enhancement of newordertypes,enhancementstothesurveillancesystemandauctionsystemsandfurthertechnicaldevelopmenttoenab

97、letechnologyclientstoenterdifferent asset classes.In addition,the Group has made further investment in personnel as it continues to developcapabilityandbrandawareness.In deciding its investment plans,Group management receiveadetailedanalysisoftheexchangeandclienttechnical opportunities,and related t

98、ime requirements onaquarterlybasis.Theseareusedtodeterminepersonnel and other resources requirements needed for allocation to these opportunities.This information alsoincludesanestimateofthedeploymentcost.The Board considers that its investments have contributedtotheGroupsabilitytogainnewclients,bro

99、adenitscustomerbaseandincreaserevenue.TheGroup recognises the importance of continuing to enhanceproductivity,andthecommitmenttofutureinvestment,bothtechnicallyandintermsofresourcetraininganddevelopment.TheGrouphasestablishedbothshortandlong-termincentiveplansbasedonperformanceforallemployees,whicha

100、resetoutin more detail in the Report of the Nomination and RemunerationCommitteeandalignstheemployeesinterestswiththelong-termstrategicobjectivesoftheGroup.The Group is required to maintain sufficient capital to meettheregulatoryobligationsforallentities.Thesearecalculatedandupdatedannually.At31Dece

101、mber2024,theCompanyICARArequirement(basedonthe2023publishedfinancialAnnualReportandAccounts)amountedto6.2m(20235.2m)andAQSEsFRRamounted to 2.5m(2023 2.1m).The individual entities of the Group meet the respective FCA and ACPRcapitaladequacyrequirementswithplentyofheadroomforfurtherinvestmentinbusines

102、soperations.FuturedevelopmentofthebusinessInordertosupportitslong-termvisionandinordertostrategicallypositionforcontinuedgrowth,Aquishasinvestedsignificantlyinitsbusinessdifferentiators,R&Dinthetechnologyplatform,brandandpersonnelresources.The Group is cognisant of the importance of such investments

103、 to maintain innovation and strong qualitydelivery.AquisStockExchangeDuring 2024,the Group has continued to invest in AQSE,buildingmarketpresenceandbrandwhilstalsobenefittingfromsynergiesacrosstheGroupsexchangememberships,dataofferinganduseoftechnology.CompliancewithSection172(1)oftheCompaniesAct200

104、6Section172oftheCompaniesAct2006requiresaDirectorofacompanytoactinthewayheorsheconsiders,ingoodfaith,wouldmostlikelypromotethesuccessofthecompanyforthebenefitofitsmembersasawhole.Assuch,Section172requiresaDirectortohaveregard,amongstothermatters,tothe:Likelyconsequencesofanydecisionsinthelong-term I

105、nterestsoftheCompanysemployees NeedtofostertheCompanysbusinessrelationshipswithsuppliers,customersandothers ImpactoftheCompanysoperationsonthecommunityandenvironment Desirabilityofthecompanymaintainingareputationforhighstandardsofbusinessconduct;and NeedtoactfairlybetweenallmembersofthecompanyWeseto

106、utbelowsomeexamplesofhowtheDirectorshavehadregardtothematterssetoutinSection172(1)whendischargingtheirSection172dutyandtheeffectofthatoncertainofthedecisionstakenbythem.StakeholderManagementTheGroupcomplieswiththerequirementsprescribedbySection414CZAoftheCompaniesActtodisclosehowtheCompanypromotesit

107、ssuccessforthebenefitof all stakeholders.STRATEGIC REPORT17Aquis Exchange PLC Report and Accounts 2024TheBoardisacutelyawarethattheGroupslong-termsuccessandsustainablevaluecreationiscriticallyreliantonmaintaininggoodrelationswithallstakeholders and ensuring that decisions are made aftertakingaccount

108、oftheprincipalstakeholdersinterests.In arriving at these decisions,the Board has assessed thelikelyconsequencesofanydecisioninthelongterm,theinterestsoftheGroupsemployees,theneedtofostertheGroupsbusinessrelationshipswithsuppliers,customers and others,the impact of the Groupsoperationsonthebroadercom

109、munity,thedesirabilityoftheGroupmaintainingareputationforhighstandardsofbusinessconduct,andtheneedtoactfairlybetweenshareholdersoftheCompany.DetailsonhowAquisanditsBoardengagewithitsprincipalstakeholders,aregivenbelow.ClientsManagementproactivelygathersregularfeedbackfromclients,bothpositiveandnegat

110、ive,inordertounderstandtheirever-evolvingneeds,identifyanyimprovementsthatwouldresultinbetterclientoutcomes or satisfaction and to foster good client relations.ThisisregularlyfedtotheBoardatmeetingsoronanadhocbasis,ifrequired.ShareholdersExecutiveManagementmeetwiththekeyshareholdersatappropriatetime

111、sduringtheyearandprovidefeedbacktotheBoard.Additionally,theChairandotherNon-ExecutiveDirectorscontinued,wherepossible,toengagewithshareholdersthroughone-on-onemeetings.ShareholdershavebeenappreciativeofthesemeetingsandfeedbackisprovidedtotheBoardinbothwrittenandverbalupdates.EmployeesThe Group promo

112、tes a positive and inclusive culture.TeammeetingsandGroupbriefingsareheldonaregularbasistoensureallpersonnelareinformedoftheGroupsperformanceandkeystrategicobjectivesand goals.Staffareencouragedtocontributetoafrequentemployeeengagementpulsesurvey,whichallowsemployeestoprovidefeedbackinconfidence.The

113、sesurveyresultswereconsistentlypositive.TheExecutiveteamdevelopsanactionplantoaddressthekeyareashighlightedwithparticularemphasisonourcore values,listed later in this report,and on investing furtherinemployeetrainingandcareerdevelopment.SuppliersTheGrouphasidentifiedkeysuppliersthatincludesupplierso

114、fofficehardwareandconsumables,aswellassupplierssuchasliquidityprovidersandadviserssuchasauditors,brokers,recruitmentagents,legaladvisers and PR consultants.The Group seeks the independentandexperiencedviewofitskeyadvisersonvariousmattersasandwhenrequired.SometimesthisisdirectlywiththeBoard,ortheBoar

115、dwillensurethat the Executive team reports on advice provided to theGroupwhenneeded.RegulatorsTheGrouptakesanopenandco-operativeapproachwithitsregulatorsandpositivelyembracestheFCAs11principlesofbusiness.TheGroupsubmitsregular returns to the FCA,the ACPR and the AMF,andemployeeswhoserolesencompassco

116、mplianceactivities are encouraged to attend regular external presentationsandworkshopsarrangedbytheregulators on topical issues and receive regular professionalupdatetraining.AllnewandexistingemployeesandadvisersaremadeawareoftheFCA,ACPRandAMFsprinciplesofbusiness,andundergotrainingrequiredbyfinance

117、professionalsworkingat an equities exchange group.The Group arranges regular compliance assessments to provide assurance that the Group is meeting the requirements of the regulator.BoardEffectivenessandHighStandardsofBusinessConductThe Board remains committed to high standards of corporateandregulat

118、orygovernance.Duringtheyear,theBoardexploredhowtoimprovetheGroupscybersecurityriskmanagementframeworksandbecamemoreinformedaboutthepolicy-makingenvironmentfor financial markets in Europe.18Aquis Exchange PLC Report and Accounts 2024StrategicReport(contd.)ConsequencesofLong-TermDecisionsConsiderablet

119、imewasspentfocusingontheGroupsstrategyandmanagementwerechallengedtothinkaboutthelonger-termimpactofdecisions,howthosedecisionswereinlinewiththeGroupsvalues,thelong-termsustainabilityoftheCompanyanditssubsidiariesandthedesiretomaintainitsreputation.In order to ensure that the Group has the required s

120、kills andexperiencetoeffectivelymanagethebusinessandanticipate future changes,the Board operates a skills matrix to map the requirements of the organisation against the current skills and composition of the Group.Managementplantorecruitadditionalemployees,inparticularinthetechnologyareaintheUKandFra

121、nceduring 2025.During the period,Aquis Directors assessed the terms oftheRecommendedCashOfferbySIXGroupAG.TheAquisDirectorsbelievethatAquiscouldrealisethefullpotentialofitscurrentstrategyonastandalonebasisinthemediumtermbutrecognisesthatthereareoperational,commercial and market risks associated with

122、thetimingofdeliveryoffuturevalue.TheAquisDirectors assessed the Offer in this context,and followingcarefulconsideration,theAquisDirectorsconcluded that the terms of the Offer provided Aquisshareholderswithanattractiveopportunitytoaccelerateandde-riskfuturevaluecreationandrealisecertainvalueoftheirho

123、ldingstodayincash.TheInterestsofEmployeesTheBoardhasalsoensuredengagementwithemployeesthroughtheengagementsurveyandthenominationofaBoardrepresentativetomeetwithemployeeswhenpossible.OurPurposeInitsroleasadisruptor,Aquisaimhasalwaysbeentoimprovefinancialmarketsbymaintainingtheutmosttransparencyandlea

124、stmarkettoxicityforthebenefitoftheendinvestor.Inthiswayitreducesboththeexplicitandimplicitcostsoftradingthatarebornebyinvestors.In addition,the Group is also focused on stimulating growthintheeconomybylisteningtotheneedsofissuersandcreatingasupportive,fairandlow-costenvironment for capital raisers t

125、o list instruments,particularlyforinnovativegrowthcompanieswhileensuringanappropriatebalanceofinvestorprotection.OurCulture,DiversityandEmployeeWell-beingTheGroupiscommittedtoethicalbusinessconductandexpectsthehigheststandardsofintegritytobefollowedbytheDirectorsandallemployees.TheAquisGroupculturei

126、sunderpinnedbythefollowingcorevalues:Trust(integrity,competenceanddeliverwhenwesaywewill);Proactivity(disciplineandinitiative);Openness(transparency);Excellence(throughcreativityandinnovation);Collaboration(throughpositive,collegiateandfreethinking);and Respect.Despiteafurtherincreaseinemployeenumbe

127、rsin2024,theGrouphasarelativelysmallresourcebase,andthereforehasconcentratedonrecruitingpersonnelwithahighdegreeofspecialistskills.TheGroupprovidesongoingtrainingandsupportwiththe aim of ensuring that personnel retain and enhance theirtechnicalskillsandthatemployeesfeelthatthereisopportunitytodevelo

128、pwithintheGroup.TheGroupalsooperatesaflexibleworkingpolicytoensureittakesaccountofindividualemployeerequirements.Aquis has a supportive and inclusive culture throughoutthewholeworkforce.WebelieveitisinthebestinterestsoftheCompanyandthewidercommunitytopromotediversityandeliminatediscriminationinthewo

129、rkplace.Ouraimistoensurethatallemployeesandjobapplicantsaregivenequalopportunityandthat our organisation is representative of all sections of society.Eachemployeewillberespectedandvaluedandabletogivetheirbestasaresult.Thepolicyreinforcesourcommitmenttoprovidingequalityandfairnesstoallinouremployment

130、andnotprovidinglessfavourablefacilitiesortreatmentonthegroundsofage,disability,genderreassignment,marriageandcivilpartnership,pregnancyandmaternity,race,ethnicorigin,colour,nationality,nationalorigin,religionorbelief,orsexandsexualorientation.STRATEGIC REPORT19Aquis Exchange PLC Report and Accounts

131、2024Weareopposedtoallformsofunlawfulandunfairdiscrimination.Allemployees,management,agency,casualworkers,andindependentcontractorsnomatterwhethertheyarepart-time,full-time,ortemporary,willbetreatedfairlyandwithrespect.WhenAquisselectscandidatesforemployment,promotion,training,oranyotherbenefit,itwil

132、lbeonthebasisoftheiraptitudeandability.Allemployeeswillbegivenhelpandencouragementtodeveloptheirfullpotentialandutilisetheiruniquetalentswiththeaim that the skills and resources of our organisation willbeeffectivelyutilised,andwewillmaximisetheefficiencyofourwholeworkforce.Aquiscommitmentsare:Tocrea

133、teanenvironmentinwhichindividualdifferencesandthecontributionsofallteammembersarerecognisedandvalued;Tocreateaworkingenvironmentthatpromotesdignityandrespectforeveryemployee;Tonottolerateanyformofintimidation,bullying,orharassment,andtodisciplinethosethatbreachthispolicy;To make training,development

134、,and progression opportunitiesavailabletoallstaff;Topromoteequalityintheworkplace;Toencourageanyonewhofeelstheyhavebeensubjecttodiscriminationtoraisetheirconcernssowecanapplycorrectivemeasures;Toencourageemployeestotreateveryonewithdignityandrespect;and Toregularlyreviewallouremploymentpracticesandp

135、rocedures so that fairness is maintained at all times.Aquishasimplementedanequality,diversityandinclusionpolicywhichhasbeencommunicatedtoallemployeesemphasisingthattheyareobligatedtocomplywithallitsrequirementsandpromotefairnessintheworkplace.Thispolicyisalsodrawntothe attention of agents,stakeholde

136、rs,customers and jobapplicants.Itisthereforeverypleasingtoreportthatgenderandnon-genderdiversitystrengthenedfurtherduringthecourseoftheyearandwebelieveourdiversityandinclusionpolicieswillhaveapositiveimpact on the successful execution of the Group strategy.In2021theGroupestablishedaspirational3-year

137、diversitytargetsfortheBoardandfortheemployees.Thesetargetswereestablishedtounderpintheimportance the Board places on this issue and to provide clear guidance and focus on these aspirations.Thetargetsandprogressareoutlinedbelow:1.Reducethegender(seniority)paygapto25%(salary)belowtheUKFinancialService

138、sindustryaverage(whichfor2024is25.1%)Ontrack:In2024,thegender(seniority)paygapwas16%onbasesalaryand19%onbasesalaryplusannualbonus.Thisisanimprovementon2023(20%and23%),2022(28%and33%)andonbaseyear2021(41%and 44%).2.Increasethemanagementteamdiversityratio Ontrack:Progresstowardsthetargetmadein2024and

139、continued focus on improvement.3.MeettheHamptonAlexanderReviewtargetofatleast33%ofboardmembersbeingfemale Achieved:TheoverallfemaleNEDratiostandsat44%4.CreateatargeteddiversityinclusivesupplementarydevelopmentprogramforemployeeswhowebelievehavethepotentialtobepromotedtoExcointhenext5years Ontrack:Ma

140、nagementhasidentifiedanumberofcurrentemployeesfortheExCopipelineanddevelopment initiatives are in place.This pipeline meetsdiversitytargets.TheGrouprunsfrequentanonymousemployeesurveysandarrangesregularmeetingswiththeBoardnominatedemployeerepresentative.Inaddition,employeeshaveregularone-to-onesessi

141、onswiththeirimmediatelinemanagerandannualreviewswheredevelopmentplansarediscussedtoensureindividualsobjectivesarealignedtothebusinessstrategyandtoimprovelevelsofemployeeengagement.TheGrouphasacommitmenttopreventingslaveryandhumantraffickingbyensuringoursupplyagreementscomplywiththeModernSlaveryAct20

142、15(MSA)withzerotoleranceforfailings.20Aquis Exchange PLC Report and Accounts 2024StrategicReport(contd.)ConsumptionandTheEnvironmentItisakeyobjectiveofAquisExchangePLCtobeabletounderstandandreduceitsownimpactontheenvironment.In2024,Aquisunderwentasecondvoluntarycarbonfootprintassessment,usingESGmark

143、tohelpuscalculate,reportandreduceourcarbonemissions through an extended lens to the previous period.ThereportboundaryincludesAquisLondonandParisofficelocations,aswellasdatacentres,businesstravel,employeecommuting,homeworkingandwastedisposal.Thesourcesthatweremeasuredfor2024were:Scope1&3:Natural gas

144、consumption of leased office spaceScope2&3:Electricityconsumptionofleasedoffice spaceScope2&3:ElectricityconsumptionofdatacentresScope3:Wastegenerationanddisposal(London office)Scope3:Business travelScope3:EmployeecommutingScope3:HomeworkingenergyuseAquisemittedatotalof688tonnesoflocation-basedCO2e(

145、tCO2e)andatotalof199market-basedCO2e in 2024.Thechosenintensitymetricisemissionsperfull-timeemployee(FTE).Aquisrecordedalocation-basedintensityof7.7tCO2eperFTEandamarket-basedintensityof2.2tCO2e per FTE in 2024.This represents animprovementfromthe2023location-basedintensityof 8.2 tCO2e per FTE,demon

146、strating a continued reductioninemissionsintensitydespiteoverallemissionsgrowth.Notably,thisreductionhasbeenachievedalongsideasignificantlyexpandedassessmentscopein2024.ThisunderscoresAquiscommitmenttoimprovingdatacoveragewhilemaintainingadownwardtrajectoryinemissionsintensitythroughoperationaleffic

147、ienciesandrenewableenergyprocurement.WearepleasedtonotethatourLondonpremiseshastransitionedtoa100%renewableelectricitytariff,andwecontinuetoevaluateourpartnerswithrespecttoourvaluechaincarbonfootprint.Thechoicetousedatacentreswitha100%renewablesupplyhasreducedmarket-basedemissionsby76%againsttheUK r

148、esidual fuel mix.Ourobjectivesfor2025areto:Enhanceenergymanagementatleasedfacilities;Continuetomonitordatacentreelectricityusetoensurealignmentwithbusinessgrowth;Improvebusinesstravelemissionstracking;ExpandScope3datacollectionstrategically;and Considercarbonoffsetting.STRATEGIC REPORT21Aquis Exchan

149、ge PLC Report and Accounts 2024GovernanceAquisvoluntarilyadoptedtheUKCorporateGovernance Code at IPO and has adhered to its provisions since then.The Directors have implemented appropriatemeasureswhichhaveallowedAquistocomplywithallprovisionsoftheCodeduringtheaccounting period and up to the date of

150、this report.AquisandAQSEaredirectlyauthorisedandregulatedbytheFCAandAQEUisregulatedbytheACPRandtheAMF.TheGroupfullycomplieswiththerelevantrules and guidelines in all respects and monitors that compliancethroughouttheyear.TheGroupsobjectiveistoestablishanopenandcooperativerelationshipwithallregulator

151、s,anditpositivelyembracestheFCAs11principlesofbusiness.TheGroupsubmitsregularreturnstotheFCA,andemployeeswhoserolesencompasscomplianceactivities are encouraged to attend regular external presentationsandworkshopsarrangedbytheFCAontopical issues,and also receive regular professional updatetraining.Al

152、lnewandexistingemployeesandadvisersaremadeawareoftheFCAsprinciplesofbusiness,andundergotrainingrequiredbyfinanceprofessionalsworkingatanequitiesexchangegroup.The Group arranges regular compliance assessments to provide assurance that the Group is meeting the requirements of the regulator.Thewidercom

153、munityAquishasbeeninvolvedinanumberofcharitableandcommunityenhancinginitiativesintheyear.Eachyearstaffareencouragedtojoinavolunteeringdayinthelocalcommunity.In2024,AquishascontinuedthepartnershipwithRavensWoodSchoolinBromleytospearheadanInvestmentClubschemewithA-LevelEconomics and Business students.

154、Aimed at increasing financialliteracyandaccessibility,studentsreceivedtailoredtalksandpresentationsfrommembersofAquisstaffonaspectsofthefinancialservicesindustry,publicmarketsandcareeradvice.Studentsthencreatedtheirownmock-upAQSEuniverseportfolioswithanimaginarystartingvalueof50,000usinganapp,develo

155、pedbyAquis,fedwithrealpricedata.Aquisintendstocontinuewithandexpandthisprogrammein future.Aquis also participated in the London Youth RowingRacetheThamesprojectandemployeeshaveshowntheirdesiretomakeadifference.KnowledgeTransferProjectIn2024,AquiscompletedtheUniversityofDerbypartnership:atwo-thirdsgo

156、vernmentfundedKnowledgeTransferProject(KTP)thatinvolvesindustryledresearchanddevelopmentonArtificialIntelligence for trading platform surveillance alerts todevelopanefficientandaccuratemarketabusemonitoringsystem.TheteamwasawardedanOutstanding-thehighestaccolade-fromUKResearchandInnovationforthework

157、.Currentsurveillancesystemsaredeterministic,handcrafted,generate a high percentage of false positive alerts and run a high risk of human fatigue and/orboredom.Consequently,marketabuseeventsmayoftenbemissedwhenanalysingalargenumberof false positives.As part of our mission to improve transparencyinfin

158、ancialmarkets,thispartnershippublishedresearchpapersonmachinelearningtechniquesthatwillmitigatehumanerrorindetectingfraudulenttradingpracticesthatharmtheintegrityof,andtrustin,financialsystemsthatarecriticalforthemoderneconomy.Aspartofourmandatetostriveforinnovation,wecontinuetoundergoworkandresearc

159、honthistopic,areexcitedforwhatthefutureholdsformachinelearning and artificial intelligence in the trading industryandareencouragedbythewidespreadsupport for this project.22Aquis Exchange PLC Report and Accounts 2024StrategicReport(contd.)AlternativePerformanceMeasures(APMs)This report contains certa

160、in financial measures(APMs)thatarenotdefinedorrecognisedunderIFRSbuthavebeenpresentedtoprovidereaderswithacompletesetoffinancialinformationwhichwouldallowauserofthisAnnualReportandAccountstobetterunderstandand compare the financial performance of the Group.NetRevenueNet Revenue is the revenue that i

161、s generated and offset against the Expected Credit Loss(ECL)movement of contractassetbalances(notethatthisdoesnotincludetheECLmovementontradereceivablebalances).Eachcontractassetbalanceisassessedagainsttheexpectedabilityofacustomertosatisfyopenbalancesinfutureperiods.OninceptionofnewTechnologylicenc

162、es,a contract asset is recognised,alongside a day-1ECLprovision.Inthisscenario,theNetRevenuefromthiscustomerwouldbetheLicenceFee(seeNote10fordetailsofperformanceobligationsfortechnologycontracts)offset against ECL provision(see Note 11 for impairmentanalysis).Forextanttechnologycontracts,asthecontra

163、ctassetbalanceisreducedbycashreceiptsfromthecustomer,theassociatedECLprovisionisreduced;inthisscenariothereleaseoftheECLbalanceisshownas Net Revenue.TheexcerptbelowdemonstratestheeffectofNetRevenues from Aquis Technologies(see Note 6,pages 100-102forafullanalysisofsegmentperformance).GroupandCompany

164、20242023Revenue from technologycustomers5,264,6397,298,157Net ECL Charge(3,685,326)(1,016,223)Net Revenue1,579,3136,281,934AdjustedEBITDAbeforeexceptionalsandAdjustedProfitBeforeTaxAdjustedEBITDAbeforeexceptionalsistheearningsbeforeinterest,taxation,depreciation,andamortisationexcludingmaterialnon-r

165、ecurringRecommendedOfferoperatingexpenses.Similarly,AdjustedProfitBeforeTaxistheprofitbeforetaxexcludingmaterialnon-recurringOffercosts.The Directors use these metrics to assess Group performancetoshowtheunderlyingeconomicperformanceyear-on-year.Offercostsaretreatedasexceptionalitemsastheyareneither

166、relatedtotheongoingactivitiesoftheGroup,noraretheyrepeatableexpenditures.Recommended Offer costs include staff costs,in addition to the various legal and professional fees paid forthenecessaryprofessionalservices.In2024,theAdjustedEBITDAoftheGroupwas2.2m(2023:6.3m)andtheAdjustedPBTwas1.1m(2023:5.2m)

167、.Thefollowingreconciliationdemonstratestheimpactof excluding Exceptional Recommended Offer costs from Adjusted EBITDA and Adjusted PBT.AdjustedEBITDAGroup20242023EBITDA(1,182,818)6,270,252AddbackExceptionalRecommended Offer costs3,343,863-Adjusted EBITDA2,161,0456,270,252AdjustedPBTGroup20242023Loss

168、beforetax(2,226,649)5,194,887AddbackExceptionalRecommended Offer costs3,343,863-Adjustedprofitbeforetax1,117,2145,194,887STRATEGIC REPORT23Aquis Exchange PLC Report and Accounts 2024PrincipalrisksanduncertaintiesTheidentificationandmanagementofriskisanintegralpartoftheexecutionofAquisstrategicvision

169、andoperations.ThebelowprovidesanoverviewoftheprincipalrisksfacingtheGroup:RiskEconomic landscapeRiskDescriptionThereisariskthatthecreditworthinessofhistoricallyfinanciallyrobustinstitutionscomprisingthecustomerbaseofAQXEmightincreasethecreditriskoftheparentcompany.Equally,asecondorderexposureispossi

170、bleforothercustomerswhomaintaindepositswithinsolventbanks.TheEconomiclandscapewasnegativelyaffectedduring2024byanumberofadverseevents,includingPalestineandthecontinuedconflictinUkraine.ThespeedofrecoverymaynegativelyaffecttheGroupstradingvolumesresultinginlowerrevenuesorincreasedcosts.MitigationAqui

171、sderivesrevenuesfrombothfeeandcontractualannuity-basedstreams,whichislessimpactedbycyclicalmarketdriventrends.ThenumerousinternationalconflictscontinuetocauseimmeasurablesufferingandharmbutitisnotexpectedtohaveamaterialadverseeffectontheGroupstradingvolumes.Pan-Europeantradingisnowexecutedalmost100%

172、bytheGroupsMTFsubsidiaryinFrance,AQEU,thathasfullregulatoryapprovalfromtheACPRtoallowtheGrouptocontinuetooperateasanMTFanditisanticipatedthatthiswillremainthecasefortheforeseeablefuture.TheDirectorsreviewourcustomerbasetochecktheseentitiesarenotdirectlyexposedtoinsolventcreditinstitutions.Additional

173、ly,swiftregulatoryinterventionbytheauthoritiesislikelytooccurandlimitthefalloutfromthesetypesofevents.24Aquis Exchange PLC Report and Accounts 2024StrategicReport(contd.)RiskLegal/RegulationRiskDescriptionTheGroupoperateshighlyregulatedentities,includingthreeMTFsandanRIEandisrequiredtomaintainsuffic

174、ientregulatorycapitalandcomplywithrelevantlegalandregulatoryrequirementsnecessarytooperatetheGroupsbusiness.AllthreeGroupentitiesmustholdregulatorylicencesandindependentcapitalminimum.There is the risk that current regulation or future changes could have an adverse effect on theGroup.Possibleimpacts

175、maybe(butarenotlimitedto):Sustaineddownturninrevenuescouldputregulatorycapitalatrisk;OneoftheGroupsentitiescouldbesubjecttoafineoralawsuitwhichmaydrawontheentitysfinances;ChangeinregulationmayincreasecostsfortheGrouporrequireunanticipatedinvestments;and Inabilitytomeetregulatoryrequirementscouldresu

176、ltinalicencebeingwithdrawnandpreventtheGroupentityfromoperatingitscorebusiness.Inaddition,changesintaxlawmayresultinanincreaseintheoveralltaxburdenoftheGroupwhichcouldhaveamateriallyadverseeffectoncashreserves.MitigationSeniormanagementconsistentlymonitorregulatorydevelopmentsincludingtheMiFIDreview

177、andWholesaleMarketsReview,andanyrequiredstepsareactionedatAudit,RiskandComplianceCommittee(ARCC)meetings.Seniormanagementalsoengagedirectlywithregulatorsonaregularbasisincluding,whereappropriate,formalresponsestoconsultation documents.TheARCCregularlyreviewstheGroupsbehaviourandstatisticsinrelationt

178、oregulatoryobligations.TheBoardplacesconsiderableimportanceonhavingcompetentstaffandadvisorstohelpmanagelegalandregulatoryrisk.TheBoardconsidersregulatorsaskeystakeholdersandendeavourstomaintainpositiveworkingrelationshipswiththeregulatorsforeachgroupentity.EachmemberoftheGroupcurrentlyhassufficient

179、excessregulatorycapitaltodealwithanyunanticipatedchangesinregulation.Changesinregulationareusuallyaccompaniedbyaperiodofconsultationthatallowsmarketparticipantstoprovidefeedbackbeforechangesaremadeandafurtherperiodtoprepare for change once changes in regulation are determined.TheGroupconsistentlyrev

180、iewstherisksassociatedwithpossiblechangesintaxlegislation.STRATEGIC REPORT25Aquis Exchange PLC Report and Accounts 2024RiskCompetitionRiskDescriptionTheGroupoperatesinahighlycompetitiveglobalindustry.Theprincipalcompetitorstothetradingbusinessarethenationalexchangesandotherpan-EuropeanMTFs/Recognise

181、dInvestmentExchanges(RIEs)whichcurrentlychargecustomersmainlyonapertransactionmodel.TheseexchangeshavesignificantmarketshareandcouldmovetocopyAquisssubscriptionfeemodel.OthercompetitorstotheexchangebusinessareadhocOTCtradingandSystematicInternalisers(SIs)whichoperateoff-exchangemodelsandmakemoneythr

182、oughspreads.Additionally,theemergenceofnewassetclassesmightreducetheGroupscompetitiveness.TheGroupalsocompetesgloballytoprovideexchangeinfrastructuretechnologyandservicesforclientstooffertheirownmarketcapabilities.Thecompetitionrisksaredrivenbythecapabilityandexperiencetoprovidetheplatformcapabiliti

183、estheclientneedstosupport its chosen market.MitigationAquisscompetitivedifferentiationisunderpinnedbyitssubscription-basedmodelandmemberchoicearoundaggressivetrading.Thisishardforincumbentexchangestoreplicatewithoutsignificantlyimpactingtheirownrevenuemodelswhichhavealwaysbeenbasedonapertransactionb

184、asisandonchargingsignificantdatafeestoparticipants.Seniormanagementinitiativestoreducethisriskinclude:consistentmonitoringofcompetitoractivityand,maintainingclosecustomerrelationshipssoastounderstandtheirevolvingneeds,andtheacquisitionofaprimarylistingbusinesstherebygainingRIEstatus.Newassetclassesc

185、ontinuetoevolveandemergebuthaveyettomakearealimpactonequitiestrading,clearingcustodianservicesandsettlementofequities;however,Aquiswillcontinuetocloselymonitornewmarketdevelopments.Tomitigatetheexchangeinfrastructuretechnologyrisk,Aquishasdevelopedmarket-leadingmatchingenginetechnologieswhicharesupp

186、ortedbyuniquecapabilitiessuchascloud-baseddeployments.Thereisalsoaclearstrategytofurtherstrengthenanddevelopthetechnologyproductoffering.26Aquis Exchange PLC Report and Accounts 2024StrategicReport(contd.)RiskIntellectualpropertyanddataprotectionRiskDescriptionTheGroupisreliantoncopyright,tradesecre

187、tprotection,databaserightsandconfidentialityandlicenceagreementswithitsemployees,clientsandotherstoprotectitsintellectualpropertyrights.TheGroupissubjecttoanumberoflawsrelatingtoprivacyanddataprotection,includingtheUKsDataProtectionAct1988andthePrivacyandElectronicCommunications(ECDirective)Regulati

188、ons 2003 and the EU General Data Protection Regulation(GDPR).MitigationTheGrouphastakenstepsthatareconsistentwithindustrypracticetoreducetheserisksbyestablishingcontrolstoprotecttheconfidentialityandintegrityofcustomerinformation,andthesecontrolsareconsistentlyreviewedfortheireffectivenessatquarterl

189、yARCCmeetings.RiskReputationRiskDescriptionThesuccessoftheGroupisdrivenbythestrengthofitsreputationacrossmultiplefactorsincludingthebrand,relationshipswithclients,Executiveandemployeereputations,andthestrengthandqualityofproductsoffered.Deteriorationinthereputationassociatedwithanyofthesefactorscoul

190、dcausearapidreductioninthenumberofclients,andthelevelofclientactivity,thatAquishasestablished.MitigationAquissphysical,digital,andvirtualidentityisaconstantpriorityandisenhancedandprotectedacrossallofAquissoperations.SpecificactionsAquistakestomitigatethisriskincludemaintainingstrongrelationshipswit

191、hclients,providingsecuretradingplatformswithclient-focusedproduct,ensuringproactiveandpositivecommunicationsandpublicity,anddeliveringmarketleadingtechnology.Aquisemployshigh-qualitytalentacrosstheorganisationandtheknowledgeandskillsofthesepeopleiskeyinmitigatingthelevelofreputationalrisk.STRATEGIC

192、REPORT27Aquis Exchange PLC Report and Accounts 2024RiskTechnologyRiskDescriptionTheoperationoftheGroupiscriticallyreliantonthesmoothandefficientfunctioningoftechnology.TechnologicalfailureswouldnegativelyaffectclientsandtheGroupsabilitytodeliveronperformanceobligations.Itcouldalsoresultinregulatorys

193、crutinyorfinesorrequirementsfor further investment.FailuretoprotecttheAquistechnologycouldmeanthatcompetitorsgetaccesstoAquissIntellectualProperty(IP)ormakeAquissusceptibletoexternalinfiltration.Theseriskscouldadverselyaffectthefirmsfinancialandcompetitivesituation.MitigationAdefiningfeatureoftheAqu

194、isbusinessmodelisitshighcalibre,in-housetechnology.Thetechnologywasbuiltandismaintainedbyhighlyskilledemployees.Aquisactivelyseekstoretaintheemployeesthroughflexibleattractiveworkingpracticesandremunerationpoliciesandtocontinuallyenhancethetechnologytomeetclientrequirements.TheGroupskeyinfrastructur

195、e,developmentandoperationalactivitiesareprioritisedaccordingly,andresourcesarecloselyandconsistentlymonitoredandreviewedwiththeaimtoensuresmoothfunctioningoftechnologyatalltimes.Aquistechnologyissecurelymaintainedtoprotectitfromunauthorisedaccesswithfullbackupandversioncontrolifremediationisrequired

196、.AquishassystemcontrolfeaturesthatareregularlytestedtoprotectdataandIP.TheGroupmaintainsaDisasterRecoveryplanthatencompassesinputfromalldepartmentsandiscontinuouslymonitoredandreviewedbyappropriatelyexperiencedindividuals.Thecomprehensivebackupandcontingencyplansinplacearetestedregularly.28Aquis Exc

197、hange PLC Report and Accounts 2024StrategicReport(contd.)RiskCybersecurityRiskDescriptionTheGroupsnetworksandthoseofitsthird-partyserviceprovidersmaybevulnerabletosecurityrisks,cyber-attackorotherleakageofsensitivedata.Potentialoutcomesofsuchanattackmightincludeoutagesofthemarket,attackswhichseektoh

198、oldAquistoransom,unintendedmovementsofthecompanyfinancesorgenerallycreate reputational and financial risk.MitigationRegularpenetrationtestsareundertakenbyathirdpartywiththeresultsreviewedbytheARCCandBoardandallemployeesundertakecyber-training.Internalexercisestoalertemployeestothepossibilityofphishi

199、ngemailsareheldregularly.TheMTFhaskillswitchesinplacewhichareintendedtorestrictclientsifroguebehaviouris evidenced.TheGrouptakesprecautionstoprotectdatainaccordancewithapplicablelaws.ExtensiveriskmanagementprotocolsareadoptedintheITcontrolframeworksoastoprevent,detectandrespondproactivelytocybersecu

200、rityattacks.Thecomprehensivebackupandcontingencyplansinplacearetestedregularly.STRATEGIC REPORT29Aquis Exchange PLC Report and Accounts 2024RiskKeymanagementpersonnelandemployeesRiskDescriptionTheGrouphasarelativelylowheadcountandhenceisexposedtokeypersonrisk.TheGroupsfuturedevelopmentandprospectsde

201、pendonitscapacitytoattractandretainkeypersonnel.MitigationTheGrouphasestablishedemergencystaffingplansforSeniorExecutives.TheNRCreviewsimmediateandmediumtermsuccessionplansandtheARCCassesseskeypersonrisk.AquisemploysanumberofstrategiestoensuretheGroupisabletoattractandretainahighcalibreoftalent.TheG

202、roupemploysarigorousrecruitmentprocessandofferscompetitivesalariesandbenefitsandemployeeshareoptionschemes,whilstpromotingacultureofdiversity,highperformanceandinclusionfromthetop.TheGroupcontinuestodemonstrateitsabilitytorecruithigh-qualityindividualsandisclearlyviewedasadynamicandattractiveemploye

203、r.RiskClient concentrationRiskDescriptionThenatureofequityfinancialmarketsisthatthemajorityofpan-Europeansecondarymarkettradingvolumesareundertakenbyasmallpoolofmarketparticipants.Thisriskhasbeenincreasedassomeofthesmallermarketparticipantshavedecidedtoroutevialargerbanksthatmaintaindirectexchangeme

204、mberships.TheGrouprevenueisthereforedependentonaconcentratednumberofcustomersandsignificantchangetoacustomersflowcouldnegativelyimpactrevenues.MitigationTheGroupcontinuestobroadenitsclientbasetoreduceclientconcentrationbutrecognisesthatvolumesfromsmallerparticipantsarenotlikelyinaggregatetobeaslarge

205、.TheGrouphasoffsetsomeoftheriskofindustryconcentrationthroughthequalityoftheMTF exchange offering and the strengthening of the product offering.TheGroupseekstomaintainpositiverelationshipswithallcurrentandfuturemembersofitsMTFexchangeandtobevigilantforchangeatanyclient.TheGrouphasdiversifieditsbusin

206、essactivitiestoincludeprimarymarkets,technologysales,dataandmarketgateways.30Aquis Exchange PLC Report and Accounts 2024StrategicReport(contd.)RiskLiquidityprovisionconcentrationAquisMarketsRiskDescriptionInmosttradingvenuesglobally,thereisconsiderablesymbiosisbetweenthevenueandtheliquidityproviders

207、onwhichthevenuesrelytomakecontinuouspricesandenhanceliquidity.InEurope,wherethereissignificantcompetitionbetweenalimitednumberoftradingvenues,theabilitytoattractsignificantliquiditytothevenueiscritical.Thebarrierstoentryareevenhigherfornewtradingvenues,whichmustbuildliquidityfromscratchanddifferenti

208、ate themselves to attract and retain it.Marketmakersthemselveshavedifferingbusinessmodelsandtradingstrategies.Asaresult,theymaybeattractedtodifferenttypesofvenuesdependingonthevalueproposition.BanksalsoprovideliquidityontheAquisplatformbuthistoricallythishasnotbeenassignificantasthemarketmakers.Aqui

209、shasahighlydifferentiatedbusinessmodelforitspan-Europeansecondarymarkettradingactivitiescomparedtotheincumbentplatforms,bothdramaticallyreducingthecostoftradingandalsopermittingmarketmakerstodecideiftheywishtointeractwithaggressivetradingfromothermarketmakers.Thisdifferentiatedandflexibleapproachhas

210、beenadriverofAquisssuccesstodate.ThenumberofmarketmakersthathavetradingmodelscurrentlyalignedwithAquissbusinessphilosophyisevenmoreconcentratedthanonthemainmarkets.Therefore,Aquishasalwaysreliedheavilyonasmallnumberofkeymarketmakerstosupportliquidityandawidergrouptosupplementit.Thesemarketmakershave

211、notalwaysbeenthesameorganisations and have changed over time.Nonetheless,itisariskthatifakeymarketmakerdecidestochangeitsbusinessmodelorphilosophyitwouldcauseashort-termdisruptioninthetotalliquidityprovided.MitigationThisriskismitigatedinternallythroughanumberofactionsincludingthosesetoutbelow,andex

212、ternallythroughthelikelyevolutionofthestructureoftheEuropeanequitymarket.Internally,managementmaintainacloserelationshipwithitsmarketmakerstoensurethattherecontinuestobepositivesynergiesforallparties.Aquishasbeensuccessfulduring2024andwillcontinuetoactivelyseektogrowmembershipanddiversifyitsliquidit

213、yproviders.Followingthechangetotheproprietarytradingrule(inNovember2023)Aquisnotedadilutionoftheconcentrationriskawayfromasmallnumberofliquidityproviderstoabroadersetofinvestorflows.Externally,themarketsharegrowththatAquishasachievedtodateisastrongindicationofthebenefitstoitsmembersandliquidityprovi

214、dersandmakesitlikelythatnaturalliquiditywillcontinuetogrow,makingtheAquismarketplacedeeperandmoreattractivefor all counterparties.AdditionalliquidityprovidersarelikelytofollowovertimeastheyshouldbeincentivisedtoadaptorcreatenewmodelsthatcapitaliseonAquissvaluepropositionandinteractionwithawidersetof

215、tradingflows.ThenumberofliquidityprovidersinEuropeanequitymarketsisstillrelativelysmalltoday,reflectingthecontinuedneedtoinvestintechnologyandregulatoryoversight.However,theGroupsinnovativeofferingswillcontinuetocounterthisrisk.STRATEGIC REPORT31Aquis Exchange PLC Report and Accounts 2024RiskLiquidi

216、tyProvisionConcentrationAQSERiskDescriptionArelativelysmallpopulationofmarketmakerssupportAQSEwithsimilarriskstothoseidentifiedabovewithregardtopotentialshort-termimpactifoneormoremarketmakersweretochangetheirbusinessmodelorapproach.MitigationThenumberofmarketmakersactiveonAQSEhasandisanticipatedtoi

217、ncreaseasthenumberofcompaniesandreputationoftheexchangecontinuestoimprove.RiskSupplierriskRiskDescriptionTheGroupisexposedtothefailureofakeysupplier.ExamplesincludelossofdatasuppliedtoAquiswhichisanimportantinputintothetradingplatform.Thismayimpacttheabilitytoundertakemarketsurveillance.MitigationAq

218、uishasbackupplansinplaceforkeysuppliersandhasagreedproceduresandthresholdsinplaceformanagingthisifnecessary.32Aquis Exchange PLC Report and Accounts 2024StrategicReport(contd.)FinancialrisksTheGroupscurrentassetscomprisecashandliquidresourcesincludingtradereceivablesarisingdirectlyfrom its operation

219、s.The main financial risks are capital,credit,liquidityandforeigncurrencyrisks.TheGrouphasapprovedFXhedgingpoliciesinplaceandasat31December2024activelymanagedthebalancesheetandriskswiththeuseoffinancialderivatives.A significant percentage of revenues remainGBPdenominatedwhilsttheGroupentersintoforwa

220、rdFXtradesasappropriateandwillcontinuetodosointhefuturewhereanyfurthercontractsarenon-GBP denominated.TheGroupsrevenuedemonstratesthatithasbeenabletomanagestrategicandoperationalrisks.However,futureresultscouldbenegativelyimpactedifanyoftherisksoutlinedaboveweretooccur.Financialriskmanagementdisclos

221、ureshavebeenmadeinNote5oftheGroupFinancialStatementsaccompanyingthisreport.ViabilitystatementTheDirectorshaveundertakenadetailedreviewoftheGroupsprospects,takingaccountoftheGroupscurrentposition,resultfortheperiod,andprincipalunderlyingbusinessrisksandopportunitiesfortheperiodJanuary2025-December202

222、9.TheDirectorsconsiderthistobeanappropriateperiodofassessmentbecauseitalignswithtargetbusinessandrevenuegrowth,andtheobjectivetomaintainandenhanceprofitabilityoverthesametimeframe.TheGroupmaintainsastrongequitycapitalpositionandmaintainssufficientcashbalances(13.7m)tocover,attheveryleast,regulatoryl

223、iquidityminimaestablishedacrosstheGroupsregulatedentities.ThecashbalancesavailabletotheGroupprovidecomfortableheadroomabovetheregulatoryliquidityfloor,andwhenconsideredalongsidethecashgenerativenatureoftheGroupsunderlyingactivities,demonstratesoperationalresilienceandarobustbusinessassetsandactiviti

224、es.Thisiscomplementedbythe Group achieving and in certain areas exceeding itsgoals.Takingintoaccountitsabilitytoexecuteitsprincipalobjectivesduringcontinuedchallengingcircumstances,theDirectorshaveareasonableexpectationthattheGroupwillbeabletocontinueinoperationandmeetitsliabilitiesastheyfalldueover

225、the period of their assessment.This assessment has concentrated in particular on thekeydifferentiatingfactorsthattheGrouphasestablished,thequalityandresiliencyoftheGroupstechnology,thebrandandmarketposition,andthereputation,qualityandexperienceofitskeypersonnel.InmakingtheViabilitystatementtheDirect

226、orshaveconsideredtheGroupsabilitytocontinueasaGoingConcern for a period of 12 months from the date of this Annual Report and Accounts.In concluding that theGroupwillbeaGoingConcern,theDirectorsapplieda12-monthforecastofexpectedfinancialperformance from the date of this Annual Report and Accountsagai

227、nsttheGroupsongoingliquidityandcapitalrequirementssetvariousregulatorybodiesintheUKandFrance.ThelevelofheadroomabovetheseliquidityfloorswasdeterminedmorethansufficienttoprovideconfidenceovertheGroupsprospectsinthenear-term.FurtherdetailsabouttheuseoftheGoingConcernbasisofaccountingcanbeseeninNote2to

228、theFinancialStatementsonpage83.ThisStrategicReportwasapprovedbytheBoardofDirectorson11April2025andissignedonitsbehalfby:DavidStevensChief Executive OfficerRichardFisherChief Financial Officer and Chief Operating OfficerSTRATEGIC REPORT33Aquis Exchange PLC Report and Accounts 2024Directors ReportThe

229、Directors of Aquis Exchange PLC are delighted to present their report to shareholders and other stakeholders,togetherwiththeauditedconsolidatedfinancialstatementsfortheyearended31December2024withcomparativesfortheyearended31December2023.TheGroupconsistsofthreeregulatedentities:AQXE,AQEUandAQSE,which

230、holdsaUKRecognisedInvestmentExchangeLicence(RIE),thatallowsittoofferprimarylistingsaswellassecondarymarketstrading.All three entities require appropriate independent Board governance.AquiscomplieswiththeFCAsSeniorManagementandCertificationRegime(SM&CR),whichensuresthattheidentifiedindividuals;namely

231、theChair,CEO,CFOandHeadofRegulationhaveclearlyprescribedassignedgovernanceresponsibilities.TheBoarddischargeditsSection172(1)dutiesinanumberofways,detailsofwhicharesetoutonp16andincludesignificanttimefocusingonstrategyfortheGroup,aswellasconsideringemployeeswell-beingduringanotherchallengingyearinor

232、dertoimprovetheBoardseffectivenessandmaintainhighstandardsof conduct.BoardofDirectorsTheDirectorsoftheCompanywhowereinofficeduringtheyearanduptothedateofsigningthefinancialstatementswere:ExecutiveDirectorsDavidStevens,CEOAppointedtotheBoardFebruary2025RichardFisher,CFOandCOOAppointed to the Board Ma

233、rch 2022.Non-executiveDirectorsDeirdreSomers,ChairAppointedtotheBoardOctober2020 Re-electedannually;lastatthe2024AGM AppointedChairNovember2024AlasdairHaynes,PresidentAppointed to the Board March 2012 ExecutiveDirectorandCEOuntilFebruary2025;Non-IndependentNon-ExecutiveDirectorandPresidentfromFebrua

234、ry2025FieldsWicker-Miurin,SeniorIndependentNon-ExecutiveDirector Appointed to the Board March 2022 Re-electedannually;lastatthe2024AGMGlennCollinsonRe-appointedtotheBoardSeptember2021 Re-electedannually;lastatthe2024AGM ResignedasChairandfromtheBoardNovember2024.MarkGoodliffeAppointed to the Board M

235、arch 2018 Re-electedannually;lastatthe2024AGMDavidVaillantAppointed to the Board June 2020 Re-electedannually;lastatthe2024AGMRuthWandhferAppointed to the Board March 2022 Re-electedannually;lastatthe2024AGMDirectorsAppointment,RemovalandDutiesTheBoardofDirectorshastheauthoritytoappointandremoveaDir

236、ector.Directorsappointmentsaresubjecttoshareholderapprovalannually.TheCompanyhasrecruitedDirectorsthatitconsidershavetheknowledge,skillsanddiversityofexperienceexpected of a director in that role including specialist financial,accountingandlegalknowledge.Directorshavecontinuedtoact,throughouttheyear

237、,inthewaywhichtheyconsider,ingoodfaith,wouldbemostlikelytopromotethesuccessoftheCompanyforthebenefitofallitsstakeholders.TheDirectorsrecognisethattheymustavoidanysituationwheretheyhaveorcanhaveaninterestthatdirectlyorindirectlyconflictswithormayconflictwiththeGroupsinterests.Directorsarerequiredtoco

238、nfirmateveryBoardmeeting,ifapplicable,thenatureandextentofanyinteresttheymayhaveinanytransactionorarrangementtowhichtheGroupisormaybeaparty.In addition,the Directors have exercised independent judgementthroughouttheyearandcanconfirmthattheyhavenotacceptedanybenefit(forexamplegiftsor inducements)from

239、 third parties arising from their positionasadirectorwhichwereintendedtoinducethedirectortoactinacertainway.34Aquis Exchange PLC Report and Accounts 2024Directors Report(contd.)BoardCommitteesTheBoardhasestablishedtwocommittees:theAudit,RiskandComplianceCommittee(ARCC)andtheNominationsandRemuneratio

240、nCommittee(NRC).Audit,Risk and Compliance Committee(ARCC)TheARCChasbeenchairedbyMarkGoodliffesinceJune2018.RuthWandhferwasamemberofthecommitteethroughout2024andDeirdreSomersjoinedthecommitteeinJanuary2024,butleftthecommitteeinNovember2024followingherappointmentasChair.MarkGoodliffeandRuthWandhferhav

241、econsiderableaccounting,riskandcomplianceexperience,and have previous Audit Committee experiencewhichincludesfinancialreportingandinternalcontrolreviews.TheARCCisresponsibleforreviewingawiderangeofmatters,includingreviewingtheannualfinancialstatements,oversightoftherelationshipwiththeexternal audito

242、r,internal audit reports,compliance submissions,MLROreports,riskassessmentsandICARA/ICAAPassessments.AsummaryreviewoftheARCCsactivitiesispresentedtotheBoardbythechairoftheARCConaquarterlybasisandminutesaremadeavailabletotheBoard.Themanagementteamisresponsibleforensuringtherighttoneatthetopandthatthe

243、ethicalandcompliance commitments of management and employeesareunderstoodandadheredtothroughoutthe Group.The ARCC supports and provides guidance on this area.This is achieved through adherence to the Groupscorevalues,annualcompliancetrainingandwhistleblowingpolicy.TheARCCmeetsatleastfourtimesperyear

244、.TheARCCadvises the Board on the appointment of external auditorsandontheirremunerationfortheauditwork,and discusses the nature,scope and results of the audit withtheexternalauditors.TheARCChasestablishedacomprehensiveassessmentoftheinternalandexternalriskswhichcouldadverselyaffecttheGroupandactivel

245、yassesses the potential impact and mitigating factors,if applicable.TheserisksarereviewedquarterlybytheARCC.Nominations and Remuneration Committee(NRC)TheNRCischairedbytheSeniorIndependentDirectorFieldsWicker-Miurin.TheothermembersoftheNRCthroughouttheyearwereGlennCollinson,DeirdreSomersandRuthWandh

246、fer(whojoinedinNovember2024followingGlennCollinsonsdeparture).TheExecutiveDirectorsandotherseniorpersonnelmaybeinvitedtoattendmeetingswhenappropriatetoprovide advice.TheNRCisresponsible,interalia,forassessingtheskills of the Directors,succession planning for all Group Boards,its Committees and Execu

247、tive Committee,identifyingandselectingcandidatesasrequiredaswellasassessingandreviewingtheremunerationpackagesoftheDirectorsandothermembersoftheExecutiveCommittee.Italsoreviewsthehigh-levelremunerationpackagesforallotheremployees.Itmakes proposals for the granting of share options and otherequityinc

248、entivespursuanttoanyshareoptionschemeorequityincentiveschemeinoperationfromtime to time.All Committee decisions on these matters are recommended to the Board for approval.AsummaryreviewoftheNRCsactivitiesispresentedtotheBoardbythechairoftheNRConaquarterlybasis.The remuneration and terms and conditio

249、ns of appointmentoftheNon-ExecutiveDirectorsoftheCompanyaresetbytheBoardafterrecommendationbytheNRC.The NRC supports the ongoing development of the Group Boards and the Executive team to ensure that theGroupretainsandrecruitsthebesttalentforitsneedsandsupportstheBoardoftheCompanyinitsworktosecurethe

250、long-termhealthoftheGroupanditsstrategyforsuccessinafast-changingworld.The remuneration of the Executive Directors is designed toattract,motivateandretainDirectorsofthecalibrenecessarytoexecuteeffectivelythestrategicobjectivesof the Group and to enhance shareholder return.The remuneration packages a

251、re designed to reflect the successoftheGroupsperformancewhilemaintainingabalancebetweenshort-andlong-termperformanceandreward.ExecutiveCommittee(ExCo)InadditiontothetwoBoardcommittees,Aquishascreated an Executive Committee(ExCo)to help facilitateday-to-dayadministrationmanagement.ExCoconsists of the

252、 Chief Executive Officer,Chief Financial Officer/ChiefOperatingOfficer,ChiefStrategyOfficer,GeneralCounsel,ChiefRegulatoryOfficer,HeadofMarketing&InvestorRelations,HeadofDevelopment,and Chief Executive Officer AQEU.STRATEGIC REPORT35Aquis Exchange PLC Report and Accounts 2024ResultsTheGroupmadeanadj

253、ustedprofitbeforetaxof1.1m(2024:5.2m).The Group generated an income tax charge of 260k(2023:creditof8k)whichwasaresultoftaxableprofitsprovidedintheforeignsubsidiary.Therewasnochangeintheamountofnetdeferredtaxasset(2023:increase of 191k recognised as income tax credit).Group contract assets(net of EC

254、L provisions)have decreasedto6.2m(2023:8.5m),primarilyreflectinganincreaseinthecreditriskagainsttwocustomersintheyear,despiterecognisingrevenuefromonenewcontractandtherenewalofanother.TheGroupinvested1.5m(2023:1.2m)intotheEmployeeBasedTrusts.ThesearerecognisedasTreasurySharesintheGroupconsolidatedre

255、sultsandasInvestmentinTrustsbytheCompany.Therewerenodiscontinuedoperationsinthecurrentorpreviousyear.DividendTheDirectorsdonotrecommendthepaymentofadividend.FuturedevelopmentsTheGrouphascontinuedtomakeprogressinbothits MTF exchange and data activities during 2024 withgrowthinrevenue,numbersofclients

256、andclientpipeline despite a challenging market environment.Thisexpansionsupportedbytheincreasinglycomprehensive suite of products for its clients underpinsthepotentialfornewcustomersasthetradingopportunitiesontheAquisMarketsbecomemorewidelyrecognised,asdoestheopportunityforincreasedtradingvolumes.Se

257、veralbanksandbrokerswhoarefocusedonthemarketmicro-structureandbestexecutionhavecontinuedtoincreasetheiractivities on Aquis Exchange and it is anticipated that otherswillfollowduring2025.LicensingactivitiescontinuetogrowacrossarangeofassetclassesastheGroupsbrandandreputationstrengthens,andregulatoryc

258、hangesgeneratenewrequirementsforinvestmentbanks,brokersandtradingcompanies.Inaddition,thecontinuedgrowthintheGroupsexchangeactivitieshelpspromotethequalityofthetechnologyandassistsingeneratingtechnologylicensingopportunitiesinternationallyandacrossdifferent asset classes through Aquis Technologies.G

259、overnanceSummaryDirectorsBoardandCommitteeattendanceduring2024issummarisedbelow:DirectorBoardARCCNRCGlenn Collinson*12/128/8AlasdairHaynes14/14Richard Fisher14/14Jonathan Clelland*2/2FieldsWicker-Miurin12/149/9Mark Goodliffe13/145/5DavidVaillant13/14DeirdreSomers13/145/59/9RuthWandhfer*12/145/51/1*J

260、onathanClellandandGlennCollinsonresignedfromtheBoardon18Apriland19Novemberrespectively.RuthWandhferjoinedtheNRCinNovember2024.36Aquis Exchange PLC Report and Accounts 2024ItwasacontinuedchallengeforUKprimarymarketsin2024,withthenumberofIPOsacrossallexchangesdecliningsignificantlyforanotheryear.Despi

261、tethis,AquisStockExchangemadesignificantprogressontradingvolumesandsecondaryfundraising,andconducted 3 IPOs over the period.The Group is confidentthatthisactivitywillbefurtherenhancedduring 2025 and thereafter.Management remains focused in 2025 on completion oftheSIXOffer.On20December2024,therequisi

262、temajorities of shareholders voted in favour of the cash offerfortheCompanybySIXExchangeGroupAGtobeimplementedbywayofacourt-sanctionedschemeof arrangement under Part 26 of the Companies Act.Subjecttothesatisfaction(orwaiver,whereapplicable)oftheoutstandingconditionstotheSIXOffer,theSIXOfferremainsex

263、pectedtocompleteinQ2 2025.DirectorsindemnityTheDirectorscanconfirmthatasat31stDecember2024therewerenoqualifyingthird-partyindemnityprovisionsorqualifyingpensionschemeindemnityprovisions,forthebenefitofDirectorsoftheGroupor directors of associated companies and that such provisionswerenotinforcedurin

264、gthefinancialyear.PoliticalcontributionsThe Directors can confirm that no political contributions,financialorotherwise,weremadeduringtheyear.PostbalancesheeteventsOn17February2025AlasdairHaynesinformedtheBoardofhisdecisiontostepbackfromtheday-to-dayrunningofthebusinessforhealthreasons,andassumed the

265、 role of President of the Group.Alasdair remainsaDirectoroftheCompany,actingasseniorcounsel to the management team.OnthesamedayDavidStevensassumedtheroleofChiefExecutiveOfficerandwasappointedasaDirectoroftheCompany.ResearchanddevelopmentThe Group is committed to continue to invest in researchanddeve

266、lopmenttoenhancethequality,efficiency,effectivenessandbreadthofitstechnology.Subsidiarycompanies/Associates/BranchesoutsidetheUKTheCompanyhasonesubsidiarycompanyinFrance:AquisExchangeEuropeSAS(AQEU).ThissubsidiarycompanyoperatesanMTFandisregulatedbytheAutoritdeContrlePrudentieletRsolution(ACPR)since

267、March2019.Aquisdoesnothaveanyothersubsidiaries,associatecompaniesorbranchesoutsidethe UK.ShareCapitalStructureAquisExchangePLCisduallistedontheAquisStockExchangeandtheAIMmarketoftheLondonStockExchange.TheCompanyhas27,602,531ordinarysharesof10peachinissue(31stDecember2023:27,516,781).Duringtheyearthe

268、Companyacquired328,861(2023:331,179)ofitsownshareswithanominalvalueof32,886(2023:37,178)forconsiderationof1,517,690(2023:1,215,243).TheseshareswereacquiredfortheEmployeeBenefitTrustsoperatedbythecompany(furtherdetailsinNote30tofinancialstatements).Theshareholderswithasignificantholding(morethan3.0%)

269、inAquisasat31stDecember2024wereasfollows:XTXMarkets9.45%Mr Gaudenzio Roveda9.28%Mr Richard Ricci7.75%Schroders5.00%Kendall Capital Markets4.93%MrAlasdairHaynes4.90%AquisExchangeEmployeeBenefitTrust4.02%SyquantCapital3.92%BarclaysWealth3.69%At31stDecember2024therewerenosecuritiescarryingspecialrights

270、andnorestrictionsonvotingrights.At31stDecember2024,1,354,748sharesrepresenting4.9%ofthetotalissuedsharecapitalwasheldbytheDirectors.Directors Report(contd.)STRATEGIC REPORT37Aquis Exchange PLC Report and Accounts 2024TheCompanyoperatesanEmployeeShareIncentivePlan(SIP),EnterpriseManagementIncentivepl

271、an(EMI),CompanyShareOptionplan(CSOP),RestrictedSharePlan(RSP)andanExecutiveShareOptionPlan(PPO).The voting rights of the shares held in the trustrelatingtotheSIP,EMI,CSOP,RSPandPPOaremanagedandcontrolledbythetrustee.OtherthantheExecutiveDirectorsparticipationinlongtermincentiveplans,fulldetailsofwhi

272、chincluding change of control provisions are included intheDirectorsRemunerationReportonpage56,therearenosignificantagreementsthatwouldalterorterminateonachangeofcontroloftheCompanyandnoagreementswithDirectorsoremployeesforcompensationforthelossofofficeoremploymentthatoccursbecauseofasuccessfultakeo

273、veroftheCompany.ShareholderreturnAquisshareholdersreturnfor2024amountsto91.1%comparedtotheAIMindexoftheLondonStockExchangewhichhadareturnforthesameperiodof-5.7%.Aquisshareholdersreturnsince14thJune2018amounts to 88.5%compared to the AIM index of the LondonStockExchangewhichhadareturnforthesameperiod

274、of-33.5%.AquisShareholderReturn14June2018-31December2024ProfessionaldevelopmentprogramsTheCompanysupportsthecontinueddevelopmentoftheDirectors.Thisisachievedprimarilythroughattendance at external conferences and seminars andin-housepresentations.Italsorunstechnicalandmanagement development training

275、programs for employees.CorporateGovernanceTheBoardcontinuedtoapplytheUKCorporateGovernanceCode(theCode)recommendationsonstakeholderengagementduringtheyear.Itfocusedonactiveinteractionwithstakeholders,informationonwhichissetoutinfurtherdetailintheStrategicReport,Nomination and Remuneration Committee

276、Report,and DirectorsReport.The Directors have implemented appropriate measures,asstatedintheStrategicReporttocomply,sofaraspracticable,withtheCode,andcanconfirmthattheGrouphascompliedwiththeCodethroughoutthefinancialyearended31December2024andtothedate of this report.EmployeesDetailsontheCompanysappr

277、oachtoemployeeengagementandhumanrightsanddiversityisgivenintheStrategicreportonpage18,andinformationontheShareIncentivePlan(SIP)canbefoundintheNRCreport.DiversitypolicyTheGrouphasadoptedaDiversityandInclusionpolicywhichissetoutinmoredetailintheStrategicreportonpages 18 to 19.EnvironmentTheDirectorsr

278、ecognisethebroaderGroupsresponsibilitytoconsumeresourcesinamannerthatensuresthelong-termsustainabilityofthebusinessandtheenvironmentsinwhichitoperates.AlthoughtheGrouphasarelativelysmallresourcebaseandassociatedofficespace,theGrouprecognisesthatitcreatescarbonemissionsfromenergy,wasteandwaterinitsof

279、ficesaswellasthedatacentres,stafftravelandindirectlythroughthesupplyofourofficehardware.Details of the initiatives that the Group has adopted in itseffortstoreducetheimpactofthiscarbonfootprintisincludedintheStrategicReportonpage20.Aquisshareprice(rebased)AIMindex(rebased)01/07/2018100%120%140%60%40

280、%80%160%180%200%220%31/12/201831/12/201931/12/202031/12/202131/12/202231/12/202331/12/202438Aquis Exchange PLC Report and Accounts 2024Directors Report(contd.)PrincipalrisksanduncertaintiesandriskmanagementpoliciesandobjectivesThe principal risks and uncertainties of the Group,togetherwithmitigating

281、actionstaken,aredetailedintheStrategicReportfrompage23.In addition,the financial risk management disclosures havebeenincludedinNote5intheGroupFinancialStatementsaccompanyingthisreport.FinancialreportingprocessinternalcontrolandriskmanagementsystemsTheGrouphasestablishedreviewprocesses,internalcontro

282、lsandriskmanagementsystemsinrelationtothefinancialreportingprocess,whichareformallysetoutwithintheGroupsInternalControlFrameworkandRiskManagementFramework.AquishasrecruitedaBoardwiththerelevantfinancialandothercomplementaryskillstoexerciseoversightoverthereporting,assessmentanduseoftheGroupsfinancia

283、linformationandtoproviderobustchallengetomanagement.Theprincipalcommitteewhichoversees this area is the ARCC.The exchange transaction and credit risk levels for AquisMarketscustomersareconsideredlowgiventhatthemajorityoftheclientsarelargefinanciallysecurefinancialinstitutionswhoareinvoicedmonthly;ho

284、wever,inordertoensurethatAquisreviewsandmanagesthebusinessriskseffectively,managementmaintainariskregisterwhichaddressesalltheidentifiedbusinessriskswhichisreviewedandassessedbytheARCConaquarterlybasis.ThemajorityofAquisTechnologiesclientsarelessestablishedbusinessesandarethereforemonitoredonanindiv

285、idualbasis.ForAQSEtherearealargernumberofclients,butofmuchsmallerscaleandcreditriskiscloselymonitoredonbothacollectiveandindividualbasis.ThefinancialstatementsaresubjecttoexternalauditbeforebeingreviewedandapprovedbytheBoardprior to shareholder approval.Aquispreparesmonthlymanagementaccountswhichare

286、 presented to the Board.The management accounts consistofactualmonthlyprofitsorlossescomparedwithBudget,BalanceSheet,variancecommentaryandforecast,regulatorycapitalsurplusandcashflowfortherestofthecalendaryear.Allnewexchangemembers,softwarelicencesanddatasubscribersareauthorisedbytheChiefFinancialOf

287、ficer.NewexchangemembersorclientsofAquisTechnologiesaresubjecttoKnowYourClients(KYC)andAnti-MoneyLaundering(AML)checksbytheAquiscompliancedepartment.AllsoftwarelicencesarereviewedandapprovedbytheCFO/COO.Allexpenditureandclientinvoicesareauthorisedby the CFO.Aquis utilises an external provider for th

288、e internal audit function.The ARCC approves the departments andfunctionsthatareaudited.Allkeyoperationaldepartmentsand/orfunctionsareauditedwithina3-yearperiod.Anyissuesraisedbytheexternalauditteamwillbecommunicatedto,consideredbyandloggedbythe ARCC.The external and internal audit team are grantedac

289、cesstoARCCandBoardpapersandanyissuesidentifiedbytheexternalauditteamwillbecommunicatedtotheinternalauditorsbytheCFO.AquishasestablishedaDisasterRecoverycrisisteamandclearDisasterRecoveryplanswhicharetestedregularly.TheplansfocusontheexchangefunctionalityandAquisabilitytoensuretradingactivitiescancon

290、tinueunderanycircumstancesandprovidingsupportasrequiredfortheabilitytoaccessallsystemsincludingAquisfinancialsystems.AccesstoITnetworks,equipment,storagemediaandprogram documentation is restricted to authorised individuals.All Aquis information is stored in secure dedicated data centres.Access to th

291、e data centres isrestricted.AllinformationispasswordcontrolledandtheITinfrastructuredepartmentmonitorsystemusage.AccesstoITsystems,programs,masterdata,transaction data and parameters and to processing inweb-basedorweb-enabledfinancialsystemsisrestrictedandpasswordcontrolled.Aquishasclearlydefinedwhi

292、stleblowingpolicieswhicharesetoutintheStaffHandbookwhichisdistributedtoallemployeeswhentheyjointheGroup.Thewhistleblowingpoliciesarealsoincludedinthecompliancetrainingprogramwhichallemployeesundertakeannually.Thesepoliciesincludeescalationofproblemsandconcernstoseniormanagementandthemonitoringofhowt

293、heseareaddressed.Thepolicies provide clear guidance on reporting concerns includingifrequiredtotheChair.Alternatively,employeescanreportconcernsdirectlytotheFinancialConductAuthority(FCA).STRATEGIC REPORT39Aquis Exchange PLC Report and Accounts 2024StatementofDirectorsResponsibilitiesinrespectofthef

294、inancialstatementsTheDirectorsareresponsibleforpreparingtheAnnualReport and the financial statements in accordance withapplicablelawandregulation.CompanylawrequirestheDirectorstopreparefinancialstatementsforeachfinancialyear.UnderthatlawtheDirectorshavepreparedtheGroupandCompanyfinancialstatementsin

295、accordancewithUK-adopted accounting standards and the Companies Act 2006.Undercompanylaw,directorsmustnotapprovethefinancialstatementsunlesstheyaresatisfiedthattheygiveatrueandfairviewofthestateofaffairsoftheGroupandCompanyandoftheprofitorlossoftheGroupandCompanyforthatperiod.Inpreparingthefinancial

296、statements,theDirectorsarerequiredto:selectsuitableaccountingpoliciesandthenapplythemconsistently;statewhetherapplicableUKAccountingStandardshavebeenfollowed,subjecttoanymaterialdepartures disclosed and explained in the financial statements;make judgements and accounting estimates that are reasonabl

297、eandprudent;and prepare the financial statements on the going concernbasisunlessitisinappropriatetopresumethatthegroupandcompanywillcontinueinbusiness.TheDirectorsarealsoresponsibleforsafeguardingtheassetsofthegroupandcompanyandhencefortakingreasonablestepsforthepreventionanddetectionoffraud and oth

298、er irregularities.TheDirectorsareresponsibleforkeepingadequateaccountingrecordsthataresufficienttoshowandexplaintheGroupsandCompanystransactionsanddisclosewithreasonableaccuracyatanytimethefinancialpositionofthegroupandcompanyandenablethemtoensurethatthefinancialstatementsandtheDirectorsRemuneration

299、Reportcomplywiththe Companies Act 2006.TheDirectorsareresponsibleforthemaintenanceandintegrityofthecompanyswebsite.Legislationinthe United Kingdom governing the preparation and disseminationoffinancialstatementsmaydifferfromlegislation in other jurisdictions.DirectorsconfirmationsThe Directors consi

300、der that the annual report and accounts,takenasawhole,isfair,balancedandunderstandableandprovidestheinformationnecessaryforshareholderstoassesstheGroupsandCompanyspositionandperformance,businessmodelandstrategy.In the case of each Director in office at the date theDirectorsreportisapproved:sofarasth

301、eDirectorisaware,thereisnorelevantauditinformationofwhichtheGroupsandCompanysauditorsareunaware;and theyhavetakenallthestepsthattheyoughttohavetaken as a Director in order to make themselves awareofanyrelevantauditinformationandtoestablishthattheGroupsandCompanysauditorsareawareofthatinformation.The

302、DirectorsReportwasapprovedbytheBoardofDirectorson7April2025andissignedonitsbehalfby:DavidStevensChief Executive OfficerRichardFisherChiefFinancialOfficer&ChiefOperatingOfficer40Aquis Exchange PLC Report and Accounts 2024DeirdreSomersIndependentNon-ExecutiveChairDeirdrejoinedtheBoardinOctober2020andw

303、asappointedtotheroleofChairinNovember2024.SheisastockmarketexperthavingservedastheCEOoftheIrishStockExchangefrom2007to2018andthePresidentofFESEbetween2015and2018.SheiscurrentlyaNEDandauditcommitteememberofBlackRockiSharesandEpisodeplc;NEDofEnfusionInc;NED and audit committee chair of Kenmare Resourc

304、es plc and Chair of CancerTrialsIreland.SheisaMember/FellowoftheInstituteofCharteredAccountantsinIrelandsince1991.DeirdrealsositsontheCompanysNomination&RemunerationCommittee.DavidStevensChiefExecutiveOfficerDavid is the Chief Executive Officer of Aquis.He joined Aquis in 2020 as Chief RevenueOffice

305、r,beforebecomingChiefOperatingOfficerin2023andChiefExecutiveOfficerin2025.DavidwaspreviouslytheCEOofforeignexchangebrokerGlobalReachGroupandhasheldseniorpositionsatInvestmentTechnologyGroupandJPMorganafterbeginninghiscareeratGoldmanSachs.RichardFisherChiefFinancialOfficerandChiefOperatingOfficerRich

306、ard is the Chief Financial Officer(“CFO”)and Chief Operating Officer(“COO”)of Aquis Exchange PLC.He joined the Board in March 2022 and alsoattendstheCompanysARCCandNominationsandRemunerationCommittees.PriortojoiningAquishewastheDirectorofFinanceatRedwoodBankandhasalsobeentheChiefAccountantatRBSamong

307、otherseniorrolesatthefirm.BoardofDirectorsandManagementTeamSTRATEGIC REPORT41Aquis Exchange PLC Report and Accounts 2024FieldsWicker-MiurinSeniorIndependentNon-ExecutiveDirectorFieldsWicker-MiurinOBE,joinedtheBoardinMarch2022asanINED.SheistheSeniorIndependentNon-executiveDirectorandchairstheNominati

308、onsandRemunerationCommittee.Fieldshasadistinguishedcareerwithover40yearsexperienceasanexecutiveandnon-executivedirectorinfinancialservices,includingservingasCFOoftheLondonStockExchange(1994-7),andservingontheboardofBNPParibas(theeurozoneslargestbank)for12years.FieldscurrentlyservesontheboardofScorse

309、(aleadingglobalreinsurancecompany)andMonzo,andchairsbothremunerationcommittees.SheisalsoDeputyChairoftheRoyalCollegeofArt&Design.MarkGoodliffeIndependentNon-ExecutiveDirectorMarkisaNon-ExecutiveDirectoroftheCompanyandChairmanoftheARCC,andalsoholdsbothrolesfortheAquisStockExchange.HejoinedtheBoardinM

310、arch2018.Markistheco-founderoftheCrackingtheCrypticYouTubechannelandwasanindependentNon-ExecutiveDirectorandChairmanoftheAuditCommitteeofbothCME(Europe)LimitedandCMETradeRepositoryLimited.AlasdairHaynesPresidentAlasdairHaynesisthePresidentofAquisExchangePLC.Hefoundedthebusinessin2012afteridentifying

311、theopportunityforprovidingahigh-qualityequitiesexchange differentiated from all other exchanges through the introduction of a subscriptionpricingmodel.PriortofoundingAquis,AlasdairwasCEOofChi-XEurope.AlasdairwastheCEOofAquisExchangePLCuntilhesteppeddownduetohealthreasonsinFebruary2025,andassumedther

312、oleofPresident.42Aquis Exchange PLC Report and Accounts 2024DavidVaillantIndependentNon-ExecutiveDirectorDavidisaNon-ExecutiveDirectorofAquisExchangePLCandChairmanofAquisExchangeEuropeSAS(sinceSeptember2019).HejoinedtheboardinJune2020.DavidistheGlobalHeadofFinance,StrategyandParticipation,andCEOforF

313、ranceatBNPParibasAssetManagement.HestartedhiscareerasalawyerwithSkadden,beforejoiningtheFrenchCentralBank.HethenheldseveralpositionsatBNPParibasCIB/CorporateFinance,notablyHead of Banking for Europe,Middle East and Africa.David is also the ChairmanofInternationalWoodlandCompanyHoldingA/S,andofGambit

314、FinancialSolutions,aswellasaboardmemberofBarodaBNPParibasAssetManagement India Private Limited.BoardofDirectorsandManagementTeamDrRuthWandhferIndependentNon-ExecutiveDirectorRuth joined the Board in March 2022 as an INED and also sits on the CompanysAudit,RiskandComplianceCommittee,theNomination&Rem

315、unerationCommitteeandtheboardofitsAquisExchangeEuropesubsidiary.Ruthhassignificantfinancialservices,technologyandregulatoryexperience.FollowingaseniorexecutivecareeratCiti,shehasservedonanumberofBoardsasanINEDincludingtheLondonStockExchangeGroup,DigitalIdentityNet,GreshamTechnologiesandcurrentlyPTSB

316、inIreland.SheheldtheChairpositionofthePaymentSystemsRegulatorStatutoryPanelfrom2020to2023,isanauthor,publicspeakerandaVisitingProfessoratBayesBusinessSchool(formerlyCASS).PhilipOlmCompanySecretaryPhilipOlmistheCompanySecretaryandGeneralCounseloftheCompany.HejoinedAquisinMarch2020.PriortojoiningAquis

317、heactedasin-housecounselforaUSbasedderivativesexchangeandhasmanyyearsofexperienceasanequitycapitalmarketslawyergainedatUKandinternationallawfirms.STRATEGIC REPORT43Aquis Exchange PLC Report and Accounts 202444Aquis Exchange PLC Report and Accounts 2024Audit,RiskandComplianceCommitteeReportThisreport

318、isintendedtogiveanoverviewoftherole and activities of the Audit,Risk and Compliance Committee(ARCC)inassistingtheBoardtofulfilitsoversightresponsibilitiesrelatingtosystemsofinternalcontrol and risk management,the independence and effectivenessoftheexternalauditorandtheintegrityoftheGroupsfinancialst

319、atements.Itdetailstheactivities,discussionsanddecisionsthatenabledtheARCCtofulfilitsresponsibilitieseffectivelyduringthefinancialyearended31stDecember2024.CompositionandmeetingsTheARCCmembersasat31December2024wereMarkGoodliffeandRuthWandhfer.DeirdreSomerswasamemberoftheARCCuntilherappointmenttoChair

320、oftheAquisBoardon19November2024.AnadditionalmemberoftheARCCiscurrentlybeingconsideredbytheBoard.TheARCChasbeenchairedbyMarkGoodliffe,aqualifiedcharteredaccountant(ICAEW)andindependentnon-executivedirector,sinceJune2018.TheGroupconsidersthattheARCCmembersqualificationsandexperienceenableittocomplywit

321、hthe audit committee composition requirements.The Chair,Chief Executive Officer,Chief Financial Officer,Director of Finance,Finance Executive Director,General Counsel,Head of Regulation,Head of SurveillanceandComplianceOfficerarestandinginvitees to all ARCC meetings.TheroleandresponsibilitiesoftheAR

322、CCTheARCCwascreatedin2013andtheTermsofReference(ToR)oftheARCCfollowstheUKCorporate Governance Code and FRC guidance.The Board undertakes an annual evaluation of the ToRwhichincludesanassessmentoftheARCCperformance.TheprincipalroleandresponsibilitiesoftheARCCare:Financialreporting:reviewofthefinancia

323、lstatementsandoversightoftherelationshipwiththeexternalauditorsandtheexternalauditprocess;Internalaudit:monitoringandreviewingtheeffectivenessoftheGroupsinternalauditorsandinternalcontrols,includingplanningovera3-yearperiod the internal audit schedule and annual audit reviews;Riskassessment:quarterl

324、yriskassessmentassessingallinternalandexternalbusinessrisksandmitigationthereof;and Compliance:quarterlycompliancereview.2024ActivitiesTheARCCmaintainsaformalagendawhichensuresthatallmattersforwhichtheCommitteeisresponsibleare considered at each meeting.The agenda for eachmeetingduring2024wasdetermi

325、nedbythekeyeventsoftheannualfinancialreportingcycle,therisksidentifiedbytheCommitteeandthestandingitemsunder the ToR.Followingtheexternalaudittenderprocessin2021andthe decision to appoint Forvis Mazars LLP,the ARCC hasconcentratedonbuildinganeffectiveworkingrelationshipwiththeexternalauditor,includi

326、ngmonitoring their independence and effectiveness and hasreviewedthescopeoftheexternalauditandagreedthekeyareasoffocus.ForvisMazarswillnotprovidenon-auditservicestotheGroupexceptfortheClientMoneyandCustodyAssetAssuranceReport(CASS)audit.TheForvisMazarsauditpartnerforthecurrentauditisPaulinePlissier.

327、STRATEGIC REPORT45Aquis Exchange PLC Report and Accounts 2024Inadditiontomaintainingtherelationshipwiththe external auditor,the ARCC discharged its responsibilitiesby/throughthefollowing:Ensuredtheintegrityofthefinancialstatements,includingannualandhalf-yearlyreports,preliminaryannouncements,and for

328、mal statements relating to financialperformance;Reviewedandmonitoredtheprincipalinternalandexternalbusinessrisksandassociatedmitigativemanagementactionsonaquarterlybasis.Thisprocessincludedarobustassessmentoftheemergingandprincipalrisksbytheboard,aswell asmonitoringexistingpreviouslyidentifiedrisks;

329、Monitoredandapprovedriskmitigationactivity,includingappropriatehedgingofemployeeshareoptionsandmanagementofFXrisk;Assessedthefinancialriskassociatedwithnewclientsandregularlyreviewedtheappropriatenessofthefinancialriskmanagementofcurrentclients;Ensuredfinanciallyappropriatevaluationsofinvestmentsins

330、ubsidiariesandotherinvestments;Completedacomprehensiveassessmentandreviewofallaccountingpolicieswithparticularemphasison areas of judgement and estimates to ensure that theyremainappropriateastheGroupcontinuestogrow;AssessedtheannualICARA;Consideredoperationalrisks,cybersecurityrisksandtechnologyres

331、ilience.Thisincludedanannualreviewoftheeffectivenessofriskmanagementandinternalcontrolsystems;and Reviewedandmonitoredcompliance,surveillanceandregulationdevelopmentsonaquarterlybasis.Prioritiesforthe2025financialyearwillinclude:Continuedmonitoringofkeyprocessessuchasbusinesscontinuityplanningandris

332、kassessment,disasterrecoveryandcybersecuritymonitoringprogrammes;Monitoringandreviewingtheprogressofthestrategic plan activities and the associated risks to thedeliveryoftheplan;MonitoringthequalityandeffectivenessofthesupportservicesprovidedtoAQEUandAQSEacrossalldepartments;Monitoringtheprogressofa

333、nymanagementactionsrecommendedbyForvisMazarswithintheirlettertoThoseChargedwithGovernance;Continuing to assess the impact of developments in accounting standards and the related implementation;Continuing to monitor compliance,surveillance and regulatorydevelopments,includinganyUK/EUregulatorydivergenceandtheimplicationsofitonthebusiness;and;Continuingtomonitorprogressonthekeyprojectsofthe Group.46