FinClear subsidiary FCX has been granted an Australian Market Licence and Clearing and Settlement Facility Licence by the Australian Securities and Investments Commission (ASIC) and the Reserve Bank of Australia (RBA).
In doing so, FCX, in respect to the trading and clearing and settlement of the FCXMarket, has become the first fully- regulated platform for facilitating private market secondary transactions.
According to the company, the licences enable the FCXMarket to trade securities in private and unlisted public companies and interests in managed investment schemes, creating the “world’s only distributed ledger-enabled, fully regulated private market”.
FinClear chief executive David Ferrall described the move as a “pivotal moment”, not only for Australia’s private companies and capital markets but for financial markets globally.
“We are delighted to have been granted Australian Market and Clearing and Settlement licences and would like to thank ASIC and the RBA for their incredible support in making this happen,” Ferrall said on Tuesday.
“The licences set a new global standard for regulated private capital markets and are a significant step forwards for Australia’s financial infrastructure.
“FCX provides a ‘bridge’ from private to public delivering a fully regulated ecosystem for companies to utilise.”
Explaining what the move means more broadly, FCX said that the Australian Market Licence makes FCX the first and only Tier 2 market operator for securities in Australia.
Meanwhile, the Australian Clearing and Settlement Facility Licence makes the platform the first and only fully licensed alternative to ASX Clear and ASX CHESS in Australia.
“Together, these licences position FCX as the only operator other than the ASX to have complete market and clearing and settlement capabilities,” the FinClear subsidiary said.
Following commitments from ASIC to promote competition and innovation of clearing and settlement services in the Australian market, this move marks the first instance of allowing competitors to offer clearing and settlement services after the Treasurer legislated ASIC to do so in 2023.
“With public markets shrinking and concentrating in Australia and globally, while private markets surge, the need for regulated opportunities in the latter has never been higher,” FCX said.
“IPOs on the ASX have hit their lowest ebb since the GFC and private capital has emerged as the fastest-growing asset sector.”
The company further noted that it is now opening the door to global private markets, valued at approximately US$13.1 trillion.
“FCXMarket comprises, for the first time globally, an integrated and regulated ecosystem which offers liquidity on demand, rather than daily liquidity, and is able to take companies from early to mid-stage and onto a mature public listing,” FCX said.
“FCX meets the increasingly corporate and complex needs of private companies who wish to remain private, and investor desire for direct access to regulated private market opportunities that far exceed the $2.7 trillion securities on ASX.”
