The Gibraltar Stock Exchange has received regulatory approval to expand its services to include the listing of debt securities and closed-ended funds.
The Gibraltar Financial Services Commission signed off on the GSX’s request to expand its existing license – which permitted the technical listing of open-ended funds – last month.
The expansion is seen as boosting the GSX’s ability to compete with rival exchanges across Europe, particularly in the area of securitisation.
The GSX opened in 2014, and has worked closely with Gibraltar Finance and its member firms in their efforts to raise the profile of the jurisdiction globally, particularly in the area of funds and insurance.
Nick Cowan, managing director of the GSX, said the exchange had seen “strong demand” for debt-related financing products in a number of sectors, including from small and medium-sized enterprises keen to take advantage of the so-called mini-bond market to raise funding in the EU’s capital markets, as well as from re-insurance companies with a need to structure catastrophe bonds, collateralise reinsurance vehicles and otherwise in need of insurance-related financing structures.
Asset managers looking for an alternative path to Europe through the use of fund-backed debt securities have also been keen to see the exchange expand its range of services, Cowan added.
“With the securitisation market in the EU at around €1.8trn ($1.9trn, £1.3trn) as of Q2 2015, and growing, the asset-backed securities market will be a particular area of focus for us in 2016,” he continued.
“Listing securitised assets on GSX – an EU regulated market with an approved prospectus – can offer a fast track, cost-effective route to the capital markets, providing full promotion and passporting rights throughout the EU.”