Hg Exchange (HGX), Southeast Asia’s first private securities exchange, has kicked off trading. Founding members of the exchange include PhillipCapital, Prime Partners, and Fundnel – a leading securities crowdfunding platform serving sophisticated investors across Asia.
Richard Teng, formerly an executive at the Monetary Authority of Singapore (MAS) and former Chief Regulatory Officer of the Singapore Exchange, has been appointed as Chairman of HGX.
HGX is a member-driven private exchange that entered the MAS Fintech regulatory sandbox in June 2020 and is thus operating under the watchful eye of the regulator.
HGX says it is seeking to generate global liquidity for its investors and issuers by providing access to high growth firms, funds, and other alternative assets. HGX adds that it will “pioneer an integrated offering with the listing and trading of both digital and non-digital capital market products.”
HGX is leveraging Zilliqa blockchain, a high-performance digital ledger technology that is enterprise-ready.
It was previously reported that Hg Exchange will also be providing custodial services.
The exchange points to the fact that more and more companies are delaying initial public offerings (IPOs) for as long as possible. Private securities markets can provide a certain level of liquidity. Technology has made it easier to build effective markets. HGX expects to eliminate information asymmetry by providing robust disclosure and information.
Via a partnership with an unnamed third-party investment research company, HGX will provide investors with “deep insights, with the goal of empowering them to make well-founded decisions.”
HGX explains that its “consortium strategy,” delivers 500,000 investors online, thus providing a competitive advantage versus other private securities markets.
HGX says it will “rapidly penetrate the markets to gain a foothold in the [Asia] region. The company plans to be highly iterative and anticipates engaging with financial institutions around the region as members.
Teng commented on the launch:
“Private capital markets have been steadily gathering momentum in deal volume and the vibrancy in activities surpasses its public counterparts. We are harnessing our strength to further transform the ecosystem by offering the market with greater liquidity options.”
Teng most recently served as CEO of the Financial Services Regulatory Authority at Abu Dhabi Global Market.