Seychelles FSA gives approval for a unique regulated market infrastructure ecosystem for digital and traditional assets with licenses for Exchange, CCP Clearing House and Central Securities Depository
London, Seychelles 5thFebruary 2020. GMEX Group (GMEX), a leader in digital business and technology solutions for exchange and post-trade operators, and Digital Partners Network (DPN), a group of professional services firms meeting the demands for digital business enablement, are pleased to announce the launch of the Seychelles-based Securities, Commodities and Derivatives Exchange (SECDEX).
SECDEX is unique, as it is fully regulated, multi-asset, hybrid (both traditional and digital), delivers seamless trading, clearing and settlement and combines the market infrastructure strengths of GMEX, as a founding shareholder, with the professional services of DPN, as a co-founding shareholder. These include specialist legal, finance, compliance, corporate structuring services and investment opportunities through a tokenised digital fund. This means, that in addition to the listing of traditional securities and derivatives, Security Token Offerings (STOs) can now be undertaken in a regulated and trusted environment, cost effectively. The complete solution offers issuance, capital raising and full professional services support for the tokenisation process, including legal and valuations plus listing and secondary trading on SECDEX Exchange with associated post trade settlement.
The SECDEX Group consists of the Exchange, Central Counterparty (CCP) Clearing House and Central Securities Depository that have all received full regulatory licences from the Seychelles Financial Services Authority (FSA). In addition, the SECDEX Digital Custodian is the first application to be formally lodged under the Seychelles FSA new Sandbox regime. This not only offers secure custody for digital assets, but also has a borrowing and lending platform (Linct) for such assets. The investment platform also offers the ability for pan-African Small and Medium Enterprises (SMEs) to raise capital through project funding and invoice factoring, plugging the SME financing gap across Sub-Saharan Africa. SMEs are able to raise equity or debt through tokenisation or traditional listing on the SECDEX Exchange.
Following the granting of the licenses, the SECDEX management team are working on the first phase of the implementation project, which will be the Exchange launch; focusing on securities, debt, spot commodities, cryptocurrencies and derivatives contracts in both traditional and digital tokenised form. The plan includes initial STOs to be primary listed by the end of Q1 and initial secondary trades to be executed by the end of Q2.
Dr Steve Fanny, CEO of the Seychelles Financial Services Authority, commented “The Financial Services Authority is pleased that SECDEX has chosen to establish itself in the Seychelles, whilst subjecting itself to the regulatory and supervision of the Financial Services Authority.” He added, “We expect to maintain a continuous and ever developing relationship, beneficial to the industry and the Seychelles as a whole, whilst ensuring the integrity and highest standard we have come to expect from SECDEX.”
Jessica T. Naga, Partner of Digital Partners Network and Director responsible for Legal and Compliance at SECDEX said “Receiving regulatory approval from the Financial Services Regulatory Authority of the Seychelles is important as SECDEX will be able to demonstrate a robust and trusted exchange and post trade eco-system.” She added, “This is aligned with key initiatives being undertaken by the G20 and other international organisations which are working to support digital asset activities to address market integrity, investor protection, anti-money laundering, counterparty risk and financial stability monitoring.”
Hirander Misra, Chairman of GMEX Group and SECDEX Group Chairman commented, “SECDEX is the first regulated market infrastructure in the world, which can exchange-list both traditional and digital asset classes including securities, security tokens, cryptocurrencies, derivatives and commodities on a single platform, with full professional services support, combined with seamless trading, clearing and settlement of these individual asset classes and swaps between them.” He added, “The SECDEX ecosystem can uniquely facilitate the global interchange of traditional and digital asset classes in line with how markets need to evolve, as well as enable the provision of SME finance across Africa.”
SECDEX utilises the proven GMEX Fusion hybrid centralised & blockchain distributed ledger technology suite, which is deployed and trusted by multiple international regulated financial institutions around the globe. SECDEX has also received strong investment interest and is in the process of actively growing ownership by syndicating equity to strategic investors, in addition to expanding the management team.
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The Seychelles-based Securities, Commodities and Derivatives Exchange (“SECDEX”) is a market infrastructure ecosystem located in the Seychelles. It is a multi-asset hybrid exchange combining the benefits of a digital exchange with those of a traditional exchange. It focuses on securities, debt, spot commodities and derivatives contracts in traditional and digital tokenised form.
The Group consists of
- SECDEX Exchange Limited (“SECDEX Exchange”) is authorised and regulated by the Seychelles FSA to operate a securities exchange regulated by the Seychelles FSA with multi-asset capabilities, which include derivatives and digital assets.
- SECDEX Clearing Limited (“SECDEX Clearing”) is authorised and regulated by the Seychelles FSA to operate as the central counterparty (CCP) clearing house regulated by the Seychelles FSA to clear trades executed on SECDEX Exchange.
- SECDEX Depository Limited (“SECDEX Depository”) is authorised and regulated by the Seychelles FSA to operate as the central securities depository and registry regulated by the Seychelles FSA for securities listed on SECDEX Exchange.
- SECDEX Digital Marketplace (“SDC Digital Marketplace” or “SDM” or “SECDEX Marketplace”) will operate as part of SECDEX Digital Custodian Limited as a trading venue to offer a broad range of digital assets which by being in custody can be listed and traded.
- SECDEX Digital Custodian Limited (“SECDEX Custodian” or “SDC”) will operate a digital custodian for a broad range of digital assets (“SDC Digital Custodian”); will operate a crypto lending platform that allows digital assets in custody to be used as collateral for lending (“SDC Linct”); and will operate a peer-to-peer platform (“SDC Investmint”) to raise capital through project funding and invoice factoring to complement the SDC Digital Marketplace, which it will also operate. Subject to regulatory Sandbox approval by the Seychelles FSA.
For more information visit www.secdex.net
or follow us on Twitter @SecdexG
About GMEX Group
GMEX Group is a set of companies that offer leading edge innovative solutions for a new era of global financial markets by being a global provider of innovative multi-asset exchange trading and post trade business solutions and technology ecosystems.
Our key business solutions enable the creation and operation of cost effective electronic exchanges and post trade infrastructure in multiple asset classes including equities, debt, FX, derivatives, commodities, cryptocurrencies and digital tokenised assets.
We operate in both developing and developed markets through the establishment of cohesive business and technology ecosystems. GMEX offers the added benefit of interconnection to multiple partner exchanges, to create global networks of liquidity.
The GMEX Market Advancement Programme (MAP) is all about partnerships and creating an ecosystem with exchanges and post trade market infrastructure operators to deliver centralised, decentralised & hybrid solutions in a collaborative fashion.
GMEX Group is comprised of the following key businesses:
- GMEX Technologies is a provider of multi-asset traditional and digital exchange trading and post trade technology through a unique partnership driven approach
- GMEX Fusion – Hybrid centralised & Blockchain Distributed Ledger solutions for trading & post-trade
- GMEX Innovation conducts R&D of technologically advanced new product solutions for exchange trading, clearing and settlement including hybrid and DLT Blockchain solutions delivered by GMEX Technologies as GMEX Fusion
- GMEX Services provides strategic consultancy, implementing services & support for exchanges and market infrastructure providers across asset classes including digital tokenised assets
- GMEX Investments makes selective seed and early stage strategic equity and token investments into market infrastructure and related FinTech companies
About Digital Partners Network
Digital Partners Network (DPN) provides tailored professional services to meet the demands of disruptive businesses, which focus on automation, digitalisation, use of artificial intelligence (AI) and Blockchain technology.
These include specialist legal, finance, compliance, corporate structuring, finance, strategic consulting, technology-enabled digital transformation and potential investment through a digital fund.
DPN consists of 4 major partners:
- Digital Associates Ltd – a Mauritian based pan-African law firm providing cross border legal services.
- Digital Corporate Partners Ltd – providing corporate structuring advice, in partnership with licensed entities such as Management Companies/ Corporate Service Providers in multiple jurisdictions
- Digital Finance LLP – providing accounting, finance, strategic advisory and digital transformation services.
- Digital Investment Fund PCC – providing equity investment into leading-edge FinTech firms and Green Finance (equity and debt) investments.
For more information, please visit: www.digitalpartnersnetwork.com
or follow us on Twitter @DigitalPn