Hg Exchange (HGX), Southeast Asia’s first member-driven private exchange, has started trading shares of its founding members PhillipCapital, PrimePartners and Fundnel. It has also officially named Richard Teng as chairman.
The Singapore-based exchange allows its members and their clients – comprising both investors and issuers – to gain global liquidity and access opportunities in funds, high-growth companies and other alternative private assets. It officially entered the Monetary Authority of Singapore's (MAS) fintech regulatory sandbox on June 22 2020.
HGX leverages advanced blockchain technology to digitize assets for greater efficiency, allowing the trading in smaller lots at a fraction of the charges associated with a public listing. This, in turn, benefits issuers who seek partial liquidity or own a limited amount of shares, including employees of private companies with equity. Non-digital trading options are available. The exchange also seeks to benefit from its members’ extensive network of established brokers and dealers.
Teng comments: “Private capital markets have been steadily gathering momentum in deal volume and the vibrancy in activities surpasses its public counterparts. We are harnessing our strength to further transform the ecosystem by offering the market with greater liquidity options.”
Teng most recently served as chief executive officer of the Financial Services Regulatory Authority at the Abu Dhabi Global Market. Prior to that, he was the chief regulatory officer of the Singapore Exchange. Teng started his career at the MAS where he served for 13 years.