Subscribe to our newsletter

Chi-X to offer US-listed companies

Chi-X to offer US-listed companies

Tim Stewart
— 1 minute read

The Chi-X stock exchange is set to make US-listed companies available to investors in Australian dollars using transferable custody receipts.

Subject to regulatory approval, Chi-X will add transferable custody receipts (TraCRs) to its investment marketplace in February 2017, giving investors access to the NYSE and the NASDAQ.

TraCRs, according to Chi-X, are based on an underlying asset that is a member of the primary index of a specified offshore market.

Advertisement
Advertisement

Chi-X chief executive John Fildes said TraCRs will be a "game changer" for Australian investors.

"For the first time they will be able to invest in some of the world’s biggest companies in Australian dollars, on an Australian exchange, protected by Australian regulations," Mr Fildes said.

"Both retail and institutional investors face the problem of diversifying their portfolio and gaining meaningful exposure to global growth stories and the new economy.

"While many Australian listed companies, ETFs and LICs are delivering underlying offshore assets and exposure in an Australian listed stock, to date no one has been able to provide direct beneficial ownership of the US powerhouses that TraCRs will deliver."

ASIC gave notice of its intention to modify the market integrity rules to include oversight of TraCRs in September.

"With trading on Chi-X’s investment products platform steadily building – warrants turnover has more than trebled this year and ETF volumes have really taken off with over half a billion dollars traded per month – and TraCRs launching in 2017, Chi-X is delivering innovation and providing Australian brokers, investors and fund managers with asset and product diversification, and access to offshore markets and new investment opportunities," Mr Fildes said.

Read more:

Monetary policy has reached its limit

Banks taking 'positive steps' on reforms: report

China facing debt ‘time bomb’, says NAB

Japanese equities see high inflows

ABA chief executive to step down

 

Chi-X to offer US-listed companies
investordaily image
ID logo

related articles

  • UK fintech launches in Aus

    UK neobank Revolut has rolled out its beta launch in Australia with around 20,000 consumers on the waitlist to try out the fintech. ...

  • Cashwerkz added to Agility Connect

    Cashwerkz has been integrated with Agility Applications’ Connect solution, making the investment platform now available to 175 financial s...

  • Fintech start-up completes $10m raise

    Australian payment start-up Verrency has closed a $10 million funding round, bringing total investment in the company to more than $20 milli...

promoted stories

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.