Gibraltar, the sunny British territory famed for its imposing Rock and Barbary Apes, is in talks to create its own stock exchange.The exchange, which would be called GibEx, was dreamt up by local law firm Hassans and Austrian-based bank Medici.
They are outlining plans to the authorities and the business community to create a trading platform, which may have the technical assistance of the Vienna Stock Exchange.
Although the proposals are still at an early stage, it is hoped that the Gibraltar Stock Exchange would attract primary and secondary listings, and particularly the listing of mutual and investment funds.
A document shown to The Daily Telegraph reveals that other areas that could be developed are for debt instruments, e-commerce and mezzanine financing.
A stock exchange located at the southernmost tip of the Iberian Peninsula, would cause considerable interest, not only because Gibraltar is a VAT-free jurisdiction, but also because it has become home to numerous global companies. Start-ups set up quickly there, although the region is small, measuring a modest 8km square, with a population of 28,750.
49 insurance businesses are licensed in Gibraltar, including Admiral – the motor insurer quoted on the London Stock Exchange, in the FTSE 250. It has also become the registered home of major gaming operators such as blue-chip giant PartyGaming, 888 Holdings and 32 Red and 18 banks are licensed there.
Hassan’s Peter Montegriffo said in the document that this is not the first time that there have been proposals for the establishment of a stock exchange in Gibraltar.
“Some years ago there was an attempt to establish an exchange, but that particular initiative came to nothing,” he explained. “Gibraltar has moved on since then. Quite apart from our finance business becoming more sophisticated, EU passporting in banking, insurance and investment services has transformed the perception of Gibraltar.”
He added that besides Hassan and Bank Medici, the main sponsors of the proposed Gibraltar Stock Exchange would be the Vienna Stock Exchange, and Baader Group – the largest market maker in Germany.
“These sponsors are in fact looking for other strategic partners,” he said. “It would be common in an exchange such as that proposed for Gibraltar, to have a number of fund managers, banking, accountancy and other strategic partners forming part of the core ownership group.
“I understand that the Government has also expressed an interest in taking a small stake, adding to the credibility of the project.” Marcus Killick, chairman of the Financial Services Commission, said: “This is an exciting prospect for Gibraltar.
“We have been working with the interested parties to ensure that an exchange, if it does happen, is in line with international standards and relative EU directives.”
Guy Canessa, a spokesman from the Gibraltarian government’s Finance Centre Department said that there was government backing for the project.
Source: Telegraph
By Yvette Essen
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