- A licence to operate Brunei Darussalam's first Securities Exchange has been granted by the Ministry of Finance, through International Brunei Exchange Ltd (IBX), a Brunei-registered international business company. IBX is a wholly-owned subsidiary of NESDEX Pte Ltd, a Singapore-based company.
- IBX will initially enable International Dealers to trade a wide variety of conventional equity and derivative products, as well as Shari'ah compliant financial instruments.
- IBX will offer attractive entry and capitalization requirements to Licensed Members and will enable brokers throughout Asia to access the Exchange their regulated home domiciles.
- IBX will enable emerging private companies to raise pre-IPO funding through the Developing Enterprise Equity Market (DEEM) platform.
- IBX will reduce barriers to entry into individual markets through the NESDEX e-financial network of trading hubs, CitiDexes, to form a consolidated pan-Asian trading platform.
Mr. Robert Miller, Head of Supervision at Brunei International Financial Centre, commented: "In the process of seeking suitable partners to establish a Securities Exchange in Brunei Darussalam, BIFC explored a number of options. After extensive due diligence, it was concluded that IBX offered the best solution. This is a milestone in the development of Brunei Darussalam as an international financial centre. The International Exchange is an essential ingredient in fulfilling the vision of positioning Brunei Darussalam as an equal partner in the global financial marketplace. At a practical level, employment opportunities for Bruneians have already been created and will expand."
Mr. Keith Heah, Chief Operating Officer of IBX, added: "The purpose of IBX is to provide a common central marketplace for investors throughout Asia to create a unified Asian investment community, optimizing the consolidation of liquidity to provide stability and economic growth throughout the region. We are delighted that the Brunei Ministry of Finance shares this vision and has empowered us to establish the nucleus of our global e-financial network in Brunei Darussalam."
International Brunei Exchange - IBX
Financial Instruments
IBX will offer a portfolio of conventional financial instruments as well as Shari'ah compliant solutions.
IBX is also pioneering the Developing Enterprise Equity Market (DEEM) for private companies intending to raise funds prior to IPO. DEEM provides a platform for trading equities of private companies that are marketed and underwritten by securities houses. They hold shares in these companies and act as market makers. All transactions are routed through and processed by these securities houses prior to trading.
Accessibility
The facilities are accessible through the NESDEX network of multi-function, e-trading hubs known as CitiDexes, which will be strategically located in major financial centres across Asia. The combination of a state-of-the-art electronic Exchange, IBX, the international network of Citidexes and the central clearing facility, NESDEX International Clearing Corporation (NIC) will enable the complete cycle of matching, trading, clearing and settlement of all transactions on a single, seamless platform.
This combination of IBX, the network of CitiDEXes and NIC, will initially create a single pan-Asian financial market encompassing all of the key financial centres in the region. Once this is established, IBX will look to Europe and the United States as the next steps in its goal to become a pre-eminent global e-financial marketplace.
Governance
The Exchange will be governed and supervised by a statutory Authority acting through BIFC. There will also be a statutory advisory Exchange Committee comprised of senior Government officials and prominent private sector representatives.
IBX will monitor all trading activity to ensure strict adherence to the Rules of the Exchange and all regulations. This activity will be conducted on a real-time basis and circuit breakers will automatically suspend trading in the event of a breach of alert parameters. Clearing and settlement within the network is fully electronic and includes a clearing guarantee provided by NIC.
IBX has instituted strict financial policies to safeguard the interests of the investors and participant firms. IBX provides a high degree of financial assurance through a combination of participant and investor deposits, statutory fidelity fund and insurance, in combination with strict credit policies and real-time market surveillance.
IBX will, in respect of its licensed Members, maintain and enforce the rules of the Exchange. The IBX rules are generic and specifically cater to cross-border trade, taking into consideration the unique nature of individual countries and markets.
For further information, kindly visit www.ibx.com.bn and www.bifc.finance.gov.bn