The Tribune

The Bahamas International Securities Exchange (BISX) yesterday identified its partner for the launch of a digital securities exchange as BRX Holdings, a financial technology (FinTech) firm.

The exchange, providing further details following Tribune Business’ revelation of their partnership, said the two sides had executed “a term sheet for a technology licensing agreement” between them to facilitate the digital securities exchange’s creation.

BISX, confirming that the proposed exchange will focus on trading programmable digital assets and securities, said it wanted the new platform “to become the world’s leading regulated exchange for primary issuances and secondary trading of regulated digital instruments”.

Private companies will be able to list their security tokens for regulatory-compliant trading, which will include an application process and continuing obligations for the listed equity tokens.

BISX added: “BISX, with its regulatory and securities exchange operational experience, will combine efforts with BRX Holdings financial technologies to provide institutional grade primary issuance and secondary trading of digital assets and programmable securities. The partnership will benefit from the trading and compliance technology, industry know-how and operational excellence of both parties.”

BRX Holdings was described as a FinTech company planning to operate in The Bahamas, and “founded by executives with deep roots in quantitative investing, trading and issuance of traditional and digital securities.”

Keith Davies, BISX’s chief executive, said: “This is a momentous day for the exchange. We have had the opportunity to meet with many groups over the last several years in the fields of blockchain and digital assets.

“However, BRX Holdings offered the best combination of strengths in the areas of technology, operational experience in this space and financial partnerships that we have identified as necessary to make this exchange a success.

“BISX for years has invested in its regulatory reputation and knowledge base in order to be in a position to pursue partnerships such as this, and so we are happy to proceed with BRX Holdings as our partner in this new venture,” he continued.

“We look forward to this partnership being a benefit to many issuers and investors in this space as they look for regulated exchanges for their digital securities. We also anticipate this benefiting our jurisdiction as professionals will be exposed to - and become expert in - a new asset class.”

In keeping with its mandate to exceed all regulatory requirements, BISX has been in continuous contact with the Securities Commission of The Bahamas throughout all phases of this proposal. The commission has agreed for BISX to proceed with the development of the proposed Digital Securities Offerings’ Exchange, subject to regulatory conditions.

To address regulatory requirements, the new exchange will automate compliance processes for qualified investors with Know Your Customer (KYC) and anti-money laundering technology. Final checks will be carried out by Bahamian compliance professionals.

The exchange will operate under rules filed with and approved by the Securities Commission, which has agreed for BISX to proceed with the development of the proposed digital securities exchange subject to regulatory conditions.