The Gibraltar Stock Exchange (GSX) today announced the GSX Global Market (GSX GM), will now offer the listing of digital debt and digital fund securities on its multilateral trading facility (MTF) — meaning the GSX is among the world’s first stock exchanges to provide this facility.
The GSX also announced that it has opened up membership to firms from outside the EU, Iceland, Liechtenstein, and Norway (European Economic Area) and Switzerland, meaning licensed financial services firms from most jurisdictions may now apply to join the GSX and bring their Issuers to market.
Nick Cowan, CEO of the GSX and founder of the GSX Group, said, “We aim to leverage blockchain to open up greater liquidity pools, making illiquid assets more accessible, and set the foundations to better democratize capital markets. Offering the listing of digital debt and digital fund securities significantly widens the potential GSX user base in respect of both members and issuers.”
The GSX operates two markets, the GSX Main Market and the GSX Global Market, which are two business lines within the broader GSX Group. The GSX Main Market is the Gibraltar Stock Exchange’s EU regulated market as defined in the Markets in Financial Instruments Directive (MiFID). The GSX Global Market is a practical listing venue option for issuers offering reduced timelines and listing costs, with a lighter reporting and disclosure framework than the GSX Main Market.
GSX’s existing permissions, granted by the Gibraltar Financial Services Commission, covers the use of distributed ledger technology (DLT) by issuers as a means of recording ownership. As a result of this decision, the GSX can now welcome applications to list corporate bonds, convertible bonds, asset-backed securities, derivative securities, open-ended and closed-ended funds in ‘digital’ or ‘tokenized’ form. The GSX will also offer the facility to track selling reports, enable parameters on eligibility and selling restrictions, and program the distribution of payments, coupons, or dividends.
“Through our service offering, issuers can gain access to all the benefits of DLT without the need for extensive in-house developer costs,” Mr. Cowan said. “GSX Group companies can offer smart contract programming and provide enterprise wallet custody solutions. The GSX Group also boasts an experienced fund administrator in digital assets offering incorporation and corporate solution services to issuers. The use of DLT in the listing process represents a route to market for issuers seeking to gain access to the benefits of tokenized debt and fund opportunities, within the framework of a regulated stock exchange.”
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