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.
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.
Bitcoin and Ethereum are snagging the headlines, but stablecoin could be a rising giant in the global finance landscape. ...