Private exchange HGX graduates from MAS FinTech Regulatory Sandbox, attains RMO licence

HG Exchange (HGX) has graduated from the Monetary Authority of Singapore (MAS) FinTech Regulatory Sandbox with a Recognised Market Operator (RMO) licence, it said in a press statement on Wednesday.

With the RMO licence, HGX can now support the issuance and trading of both digital and non-digital capital market products.

The member-driven private securities exchange entered MAS's fintech regulatory sandbox in June last year to test a marketplace for private-company shares. It then began trading three months later.

HGX also announced that it has promoted Willie Chang from chief operating officer to chief executive officer of the company.

With the graduation from the regulatory sandbox, Mr Chang is confident that HGX can attract more global companies and investors to the platform.

"We want to build a strong marketplace where investors can access everything from equities in high-growth companies, funds, and loan products to more unconventional financial products such as high-end luxury goods like art, wines and whiskies," he said.

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Eric Neo, group director and co-founder of RF International Holdings, was also appointed president of the company.

As more seek inroads into alternative investments, Mr Neo believes that HGX is well-positioned to take advantage of this demand.

"The financial landscape has evolved at a rapid pace in the last decade as we now look to democratising private fundraising and investments for companies," Mr Neo said.

In addition, PhillipCapital, a member firm, will be a designated market maker to boost exchange liquidity and facilitate trading.

Managing director of Phillip Securities Luke Lim said that as a member firm, its clients would be able to invest in a wider range of alternative assets, adding that HGX marketplace is a "great place to bring alternative assets into the market through listing".

Established by Fundnel, PhillipCapital, PrimePartners and Zilliqa, HGX allows for digitised securities issuance and secondary trading of digital securities. Digital securities can also be fractionalised, making their prices more accessible to investors.