Mark Oliphant, Head of Communications at The International Stock Exchange Group (TISEG), looks at the innovative approach of The International Stock Exchange (TISE).
There were 705 new listings on TISE during 2017, which was an increase of 40% on the previous year. In the first quarter of 2018, there was a 16.5% rise year-on-year which took the total number of listed securities on the Exchange to 2,606 at the end of March 2018.
Much of this is debt, including convertible and high yield bonds as well as investment vehicles and a smaller number of trading/operating companies. The debt comprises a range of global companies, public and private, which are using TISE as a cost-effective and convenient venue to list their issuances.
In addition, we have had an increase in enquiries from family offices that are looking at the benefit of establishing investment vehicles which may need to satisfy co-investor demands for a product which is listed on a recognised stock exchange.
Ethical investing
Investors are also increasingly looking at, not just the return on investment, but at the ethical quality of their investments, whether they are ‘green’, ‘sustainable’ or ‘impact’ investments.
TISE has listed debt securities and investment vehicles which are being issued to help finance projects of this nature, for example, in the form of renewable energy and social housing.
“TISE is keen to play its part in facilitating the provision of ethical investment opportunities.”
Headquartered in Guernsey, TISE has also been part of industry consultation with the Guernsey Financial Services Commission (GFSC), which has proposed the introduction of the world’s first regulated green investment fund product, the Guernsey Green Fund.
TISE is keen to play its part in facilitating the provision of ethical investment opportunities because we see how this helps meet a growing demand from investors and potentially benefits society in its widest sense.
(Fin)tech
Similarly, TISE has already listed debt securities and investment vehicles which are being used to help capitalise on technology initiatives.
TISE also became home to the world’s first listed regulated bitcoin fund, when GABI plc was admitted to the Official List in December 2016. We continue to see a strong number of enquiries related to cryptocurrencies, including Initial Coin Offerings (ICOs) and we are working to better understand the space from a regulatory perspective with a view to potentially admitting certain types of crypto-related listings in the future.
We are also continuing to explore how our own business can use newer technologies to improve the quality of services we provide to our stakeholders.
The future
The role of technology will be hugely important in the development of our offering, not least as we seek to diversify our business base by providing a more cost-effective public marketplace for growth companies.
This article originally appeared in IFC Economic Report, Summer/Autumn 2018.