International Stock Exchange first to list digitised notes
The International Stock Exchange (TISE) has announced what it says is believed to be the first ever listing on a regulated exchange of notes digitised on a blockchain.
Dom Re IC Limited issued $15m Principal-at-Risk participating notes, due 2024, digitised on a private blockchain and listed on TISE. The Exchange is based on the English Channel island of Guernsey.
Referred to as ‘ILSBlockchain’, the mechanism replaces the role of a traditional settlement system for the note issue. Dom Re is a cell of Solidum Re (Guernsey) ICC Limited, itself a wholly owned subsidiary of Insurance Linked Securities (ILS) manager Solidum Partners AG.
In July Solidum Re was the first ILS specialist to become a TISE member firm, when it was approved to arrange and sponsor the listing of debt securities and investment vehicles on the Exchange.
TISE open to innovation
Commenting on the issue Fiona Le Poidevin (above), CEO of The International Stock Exchange Group (TISEG), said: “I am delighted to welcome another ‘world first’ to TISE. Clearly there is huge potential in the use of blockchain technology generally but especially within capital markets and so I am delighted that now we are part of such a ground-breaking development.
“This listing adds to our reputation for being open to innovative ideas which are shaped by the use of new technologies as well as cutting-edge listings within ILS.” In 2016 TISE became home to GABI Plc, at that time the first regulated bitcoin fund to be listed on any exchange globally.
In 2011, Solidum Re Eiger IC Limited was admitted to Exchange’s Official List in what was the first private catastrophe (cat) bond transaction to be listed on any exchange worldwide. Since then, TISE has also become home to the world’s first ever securitisation of takaful (Sharia compliant) insurance policies.
Solidum Re director Cedric Edmonds said: “I am delighted that Dom Re has been listed on TISE. The Dom Re structure is not only ground-breaking in the ILS sector but also in terms of the dematerialisation of notes generally and so it is fantastic that now we have been able to take this a step further and make it a ‘world first’ listing on a regulated exchange.
“The TISE listing not only adds to our use of the high quality infrastructure available in Guernsey but it also raises our visibility and increases potential distribution as the notes are now eligible listed investments for many investor groups.”