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Hirander Misra, Chairman and CEO of GMEX Group and MINDEX

In order to generate development and innovative change, we must question and challenge what is already before us. It is not as simple as taking the next step up the ladder or adding to what you already have, it is about stripping a business model back to the basics, clarifying what you want to achieve and doing so by taking a completely different path.

So what does this mean in the context of exchanges and financial market infrastructure? A good place to start is to learn from the past to see what might happen in the future: After the emergence of electronic markets, exchanges, for some time, became complacent towards innovation and the idea that there would be any real competition. Then regulation became more demanding, forcing the exchanges to react and creating opportunities for start-up trading venue firms with progressive ideas and ‘disruptive’ technology to bring new solutions. Interestingly, regulation could also be viewed as ‘disruptive’ as it was the driving force which pushed the exchanges to adopt new innovations and adapt in conjunction with the market.

But what happens next in terms of evolution? We have seen the fast emergence of blockchain being applied to the exchange and post trade space with advocacy of decentralised and centralised exchanges in abundance. Once you cut through all the hype there are some interesting use cases now being productionised. Having said that it seems like every other day there is a new announcement about yet another initiative wanting to become the next Binance or a game-changing institutional crypto exchange, with some wanting to become a combination of the two. Some will certainly succeed and that will be predicated on good technology, a sound business model and ultimately a good balance of liquidity. Yet one thing is clear and ironic, the majority of these exchanges whilst advocating decentralisation in their marketing materials and white papers are still centralised. Thus essentially the exchange construct is no different now than it was a number of decades ago when electronic markets came into being.

Once a technological system is in place a problem of inter-connectivity exists. Some of the new emerging exchanges and existing smaller and medium size exchanges simply do not have the expertise to innovate in their own right and are buying the technology off the bigger exchanges in the belief that everyone is connected to their system. These systems are also often marketed as being digitally enabled. But if you look at this large and expensive piece of technology much of it dated – no matter how you wrap it up or market it, providing just a matching engine, which does not make it a digital exchange solution as there is no post trade offering for digital assets. It is deployed into these exchanges standalone, so it’s akin to being landlocked and isolated where ships of liquidity can’t sail to. If each exchange has its own system connected to their market, they are effectively detached entities which are unable to help new markets grow and increase liquidity. This is true of traditional exchanges and most crypto exchanges today.

In terms of trading crypto and wider digital assets, it requires much more than just offering up a matching engine and it amazes me how excited people can get about this single aspect. Whilst it’s important that the trading system can handle 24 by 7 trading, and quirks such as 8 decimal places for quantity and price which do not exist in normal markets, the trading platform with its integral matching engine is simply the support actor in this movie. The stars of the show are managing wallets securely as well as ensuring trusted custody and settlement of these digital assets.

The next wave of business models in the crypto and digital space are all about partnerships and innovation; it’s key to work with these markets in a way that they interconnect and grow. By creating a network of interconnected exchanges and markets, liquidity can be provided and new opportunities can arise. Blockchain certainly makes this interconnectivity possible yet today there are multiple blockchains with scant interoperability between them. Add to this the complexity of new blockchain-based networks and existing legacy networks having to run in parallel. The landscape is changing fast and both new and existing exchanges and market infrastructure operators need to understand how they can capture the opportunity that arises from it.
True Tokenomics is about having the foresight, innovation and interconnectivity to create a network effect. This is turn will create multiple opportunities, with partnerships magnifying the positive impact leading to increased value – delivering “Token Augmenting Partnerships” (TAP).

It is evident that exchange and financial market infrastructure model 1.0 will become extinct over the coming years as standalone exchanges will not be able to survive. Can we think of an era before the smart phone, which has democratised the way we can access and generate information? Today’s exchanges are essentially like the phones that existed before this era, not an iphone whose creator Apple is seen as an innovator which provides knowledge rather than a supplier of technology, thus commanding a premium for its products and services and being able to distribute and commercially benefit from third party services.

Model 2.0 is all about leveraging blockchain to create digital opportunity across jurisdictions without traditional intermediaries, who will need to reinvent themselves rather than just protect their turf in this new digital era by merely creating new ways of doing old things. It will allow exchanges to interconnect directly should they be willing to. This will facilitate asset swaps and general trading in tokenised form across a broad range of assets beyond just cryptocurrencies. This can include digital gold aligned to safe physical storage; security tokens with the ability to settle using stablecoins and digital fiat currencies using secure digital custodians aligned where applicable to physical assets and segregated cash on account held in escrow.

This is not a pipe dream as it is already playing out faster than most envisaged with appropriate market surveillance, credit checking, position keeping and margining being more predictive and proactive, linked to the exchange trading platforms as opposed to just being reactive post trade. Central Counterparty Clearing House 2.0 or “CCP light” is also very much now in the movie frame. This is going to replace the “wild west” nature of the first wave of crypto exchanges with the second wave of institutional grade digital exchanges that stand up to regulatory scrutiny across a multitude of jurisdictions.

It is time for traditional as well as crypotcurrency exchanges and market infrastructure operators to wake up and smell the coffee; which means not just doing their own thing but also realising, in this new digital age, the way for them to succeed is to open up the TAP to facilitate business opportunity with the right technological enablement. Let the matrix continue to expand, mesh and interconnect so that the all star cast of digital enablement is available and accessible for the market infrastructure masses if they want it to be and know where to really look to make the predecessor to exchange 1.0 a success and not a flop of missed opportunity. Digital Exchange 2.0, the much anticipated sequel.

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By Hirander Misra, Chairman and CEO of GMEX Group and MINDEX

We have seen a wave of unprecedented activity in the blockchain space this year, with buzzwords such as blockchain, crypto and ICO (Initial Coin Offering)/ STO (Security Token Offering) moving into mainstream. The recent budget in Mauritius also recently announced that the following initiatives will be undertaken as part of the continued ambition to continue to grow as a regional Fintech hub:
<ul>
<li>Setting up of a National Regulatory Sandbox Licence Committee to consider all issues relating to Sandbox licensing for Fintech activities including the investment and development of blockchain technologies and cryptocurrencies as digital assets.</li>
<li>Creation by the FSC of new licensable activities, namely Custodian of Digital Assets and Digital Asset Marketplace, so as to provide a regulated and safe environment for digital assets custody and exchange.</li>
<li>Issuance by the FSC of guidelines on investment in digital assets such as crypto currency.</li>
</ul>

This represents a massive opportunity for Mauritius to position itself as a major global centre in this space underpinned by strong governance and regulation to ensure trust. Innovation and regulation in this space go hand in hand. Sham ICOs have to be stopped and robust KYC / AML processes and rules must be put in place. In addition technology if developed and deployed well can ensure that some of the crypto exchange hacks we have heard of in other parts of the world can be avoided. Ultimately the current regulatory confusion will correct itself as there will be a flight to quality to those jurisdictions with robust laws and regulations in place. The unregulated bucket shop exchanges with poor controls will cease to exist, as properly run and secure technology enabled digital exchanges and digital asset custodians come into the market to facilitate increased institutional business and wholesale retail business.

Blockchain technology is fundamentally game-changing and should be used to effect high impact change. Sometimes second-mover advantage is beneficial; learning from first-mover successes and mistakes allows us to optimise or design something much better. Think digital watches, UK invented but Japanese perfected and through mass marketing the output Casio were able to dominate the market globally. Mauritius as the second mover has learnt from what has worked well and not so well in other jurisdictions, which will enable it to put in place a framework which works in a global context.

Being agile and adaptable in this fast moving market is essential. Of course a technology or services company must create its own technology or product IP but as we enter the era of Tokenomics, collaboration becomes key so that one plus one equals eleven. Collaboration in Mauritius between not only the private sector, but also the public sector linked to other global centres in this space will create a network effect. I call this an era of Token Acceleration Partnerships (TAP). Think of a company as a node and its associated network branching into many different initiatives, which in turn create a mesh matrix that acts a super network allowing every product and service to be exchanged for every other; defined by token value of the node and the associated network offering it. In addition, as more innovative IP is created, knowledge shared or combined between the network partners, the whole network is able to stay ahead as a collective. Everyone has the ability to share in token value from the utility increasing trade and investment.

This will mean that any asset can be tokenised and exchanged e.g. Digital Gold against Crypto or Crypto against tokenised securities, with a defined pricing matrix and mechanism to facilitate the exchange. For example – If a digital asset exchange trades gold backed by secure physical gold and another trades cryptocurrencies, the two can allow clients access to each other’s products increasing trade for both. In addition there will be increasing opportunities to finance digital assets in terms of borrowing, lending and pledging much like one can be with real world physical assets such as gold today. As such this is an opportunity amongst many for the banking sector, which also dispels the fallacy that the crypto economy is all about disintermediation through decentralisation. As projects evolve, bridging the gap between the current world economy and the fast emerging digital token economy, we will see greater cohesion with the opportunity for this to drive GDP growth in Mauritius being immense.

Much like exchanges today, even though they are increasingly cross border, there will still be a role for strong regional-centric plays and in turn collaboration between exchanges focussed on specific regions. We will also see traditional exchanges reinvent themselves, to position themselves in the digital asset age. It will be interesting to see if they innovate from within or from outside-in.

Additionally in Mauritius, more Crypto / ICO/ STO funds will emerge as High Net Worth’s investing into the sector, to diversify their portfolios, will demand well-vetted projects with deliverables (not just a web-site and whitepaper) and diversification across ICOs and STOs rather than a single project. As the market matures, albeit innovation will continue at a pace, regulators and policy makers should ensure regulation is pragmatic yet robust but not stifling.

This new digital framework in Mauritius will offer the Fintech sector and beyond unprecedented opportunities in terms of size and scope with the fundamental possibility to also transform financial services. It will be very exciting to see how this will be embraced in the coming months and years ahead.

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Mauritius, London, 6th November 2018: We are pleased to announce the launch of the HYBSE International Marketplace; a joint venture between MINDEX Holdings Limited (MINDEX), GMEX Group Limited (GMEX) and Hybrid Stock Exchange Corporation Limited (HYBSE); that will bring to market a revolutionary blockchain exchange platform, based in Mauritius.

MINDEX; a complete exchange, post trade and physical infrastructure, facilitating a variety of asset classes to be traded in Mauritius, supported by GMEX; a world leader in digital business and technology solutions for exchange and post-trade operators, will partner with HYBSE; a global online marketplace based on blockchain technology that is part of the DIM-Ecosystem.

The HYBSE International Marketplace will integrate blockchain solutions and technology with traditional financial industries providing a complete and governed ecosystem that digitalizes assets onto the Blockchain. This partnership will for the first time, enable institutional investors access to cryptocurrency ETF’s and other crypto-instruments.
The following asset classes will be facilitated for trade in a digital tokenized format:

  • Cryptonized Shares
  • Cryptonized Currencies
  • Commodities
  • Indices
  • Forex
  • ETC’s (Exchange-Traded Commodities)
  • ETF’s (Exchange-Traded Funds)
  • CETF’s (Crypto Exchange Traded Funds)

SMEs will be able to use the HYBSE International Marketplace to seek capital by launching an Initial Blockshare Offering (IBO); a time-limited offer to purchase cryptonized-equities and other cryptonized-instruments, such as blockshares, from businesses registered on the HYBSE International Marketplace at special discounted rates. This will provide opportunities for the unbanked (more than 1.7 billion worldwide) to participate in the listing and trading of stocks.

The parties have chosen to set up the HYBSE International Marketplace in Mauritius further to the recent announcement that the Financial Services Commission (FSC), the local regulator, will create new licensable activities for the Custodian of Digital Assets and Digital Asset Marketplace and provide a regulated environment for the exchange and safe custody of digital assets. The regulator in Mauritius has also issued guidelines on investment in cryptocurrency as a digital asset.

Hirander Misra, Chairman of MINDEX and CEO of GMEX Group commented: “I am delighted to announce this exciting joint venture, where HYBSE will bring its vast domain knowledge, securities to be tokenised and its blockchain-based digital exchange technology and MINDEX, supported by GMEX, will provide scalable institutional grade digital trading platforms and business and operational expertise to set up the new marketplace.”

He added, “We welcome the new regulatory framework for digital assets in Mauritius and we are thrilled to be at the forefront of market development as one of the first ventures to set up under the new regime. We are firmly convinced that there is a massive opportunity for Mauritius to position itself as a major global hub in this dynamic space underpinned by strong governance and regulation to ensure trust”.

Daniel Liu of Hybrid Stock Exchange Corporation Limited (HYBSE) commented “The new venture between the three companies will bring about an exciting new development, not only for the crypto sphere, but global capital markets as a whole. As we embark on a journey to pave a previous uncharted way forward, this will inevitably create an ideal prospect to move the evolution of all financial systems, light-years ahead. We must also maintain a conscious belief of the power of this evolutionary step, as not to disrupt current global markets, but to rather bolster a new way of thinking that encompasses a decentralised and truly free market entity.”

*** End***

For MINDEX:
Samantha Seewoosurrun, Acuitas Communications
(+230) 5772 4400
Samantha.seewoosurrun@acuitascomms.com

For GMEX Group:
Melanie Budden, The Realization Group
+44 (0)7974 937 970
melanie.budden@therealizationgroup.com
pr@gmex-group.com

For HYBSE:
Uroš Trajković, Hybrid Stock Exchange Corporation Limited
+27 (0) 87 701 0914
ut@hybse.com
press@hybse.com

About MINDEX
MINDEX Holdings Limited – The holding company for the MINDEX ecosystem
MINDEX Clearing Limited – Will operate as the central counterparty (CCP) clearing house regulated by the Mauritius Financial Services Commission (FSC) to clear all trades executed on MINDEX Limited.
MINDEX Limited – Will operate a multi-asset Derivatives Exchange regulated by the Mauritius Financial Services Commission (FSC).
MINDEX Spot Limited – The marketplace for the electronic trading of standardised physical and digital spot commodity contracts for gold, precious metals and other commodities.
MINDEX Vault Limited – The proposed secured storage depository solution for gold and other precious metals.
MINDEX Refinery Limited – The proposed world class smelting, refining and recovery of gold and other precious metals to the highest standards.

For more information, visit www.mindex.mu
Follow on Twitter @MindexHoldings

About GMEX Group
GMEX Group (GMEX) comprises a set of companies that offer leading-edge innovative solutions for a new era of global financial markets, providing business expertise, the latest technology, connectivity, and operational excellence delivered through an aligned partnership driven approach. GMEX uses extensive market infrastructure experience and expertise to create an appropriate strategic master plan with exchanges, clearing houses, depositories, registries, and warehouse receipt platforms. GMEX also offers the added benefit of interconnection to multiple partner exchanges, to create global networks of liquidity. GMEX Technologies is a wholly owned subsidiary of GMEX Group.

For more information, visit www.gmex-group.com
Follow on Twitter @GMEX_Group

About HYBSE
The Hybrid Stock Exchange (HYBSE) is an online blockchain based exchange platform. It permits the buying and selling of cryptonized-equity in the new era of cryptocurrencies. The use of blockchain technology allows participants to cut out many of the intermediaries that are associated with traditional exchanges. While traditional exchanges serve participants from specific geographical locations, the HYBSE is open to all participants globally.

For more information, visit www.hybse.com
Follow on Twitter https://twitter.com/HYBSE

strong>About the DIM Foundation
The DIM Foundation is a non-profit organization that is responsible for the marketing, public relations, customer care and oversight of the DIM brands (DIMCOIN, DIM Currencies, DIM Cryptocurrencies and future DIM denominated coins). DIM X is a cryptocurrency converting platform. The DIM Foundation is registered in Singapore.

The regional DIM Foundation will be responsible for:

  • Collecting donations for the DIM Ecosystem
  • Creating events for the DIM Ecosystem and attending blockchain events
  • Launch marketing campaigns for the DIM Foundation
  • Attract businesses into the DIM Ecosystem
  • Becoming a central meeting point for ambassadors and promoters.

For more information, visit www.dim.foundation

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EQIBank demonstrates momentum with accounts for top cryptocurrency exchanges set to open this year

GEORGE TOWN, Grand Cayman – 18th October 2018 – EQIBank, the world’s first licenced and regulated bank for national currencies, crypto and digital assets, has announced that it expects to secure €50bn in custody assets by July 2019 and hold €10bn under deposit by the end of 2019.

Founded by former HSBC, Credit Suisse, Bank of New York and UBS bankers, EQIBank lets customers manage traditional and crypto assets within a single banking relationship for the first time. It is the first licensed and regulated bank ready to provide secure, consistent and scalable banking to the under-serviced cryptocurrency sector, which currently has a market capitalisation of US$210bn . This is why EQIBank is currently working with four of the top ten largest cryptocurrency exchanges in the world to open accounts in December.

“The inability to bank cryptocurrency is probably the major challenge facing cryptocurrency exchanges globally with bank accounts constantly being denied or shut down for compliance reasons. EQIBank solves this problem by allowing exchanges and their clients to transact in cryptocurrency and national currency within the one regulatory and technology system in accordance with global banking compliance standards. It is a breakthrough for the blockchain industry as it provides banking certainty for businesses that involve blockchain and cryptocurrencies,” said Sam Lee, Founder and CEO of Blockchain Global.

“GMEX Group delivers the technology behind innovative exchanges and digital asset trading platforms across the globe. We are proud to be recognised as one of the powerhouses of the blockchain economy. However, the well-documented challenges around banking cryptocurrency are proving a major roadblock in this space, preventing blockchain from fulfiling its potential. EQIBank has made great strides in tackling this problem, allowing exchanges, businesses and individuals to bank in cyrpto and national currency – that’s why MINDEX our gold exchange initiative and our other exchange ventures across the globe will be using EQIBank,” said Hirander Misra CEO of GMEX Group and Chairman of MINDEX.

The opportunity is huge for a new breed of bank
Existing global banks hold over $143.75 trillion in assets but are burdened by legacy systems and cumbersome organisational structures. Their lack of flexibility is a key reason that challenger banks have gained such momentum. EQIBank is the first offshore challenger bank in the world – and technology sits at the core of its proposition, using cloud computing, digital services and blockchain technology to bridge the worlds of cryptocurrency and banking.

“Existing and new global clients are not adequately serviced by the current antiquated banking structure. Many regional and global banks have merely not scaled to meet the requirements of innovative industries like blockchain. The services of EQIBank are in huge demand by our Law Firm and clients. We hope to open as many as 1000 client accounts a month via our Foreign Direct Division of Yingke, Corporation China.” said Marco Pearman-Parish, President, Yingke Global – China’s largest law firm .

EQIBank anticipates a huge level of success is because it is unique in addressing the needs of many additional high-value markets:

The global bank of choice for hedge funds: EQIBank launched offshore where 85% of the world’s hedge funds are domiciled meaning that it is perfectly positioned to be the first choice for the fund industry

High-net-worth individuals: The global volume of net investable assets of high-net-worth individuals is expected to increase by around 25% to almost US$70 trillion by 2021 but challenger banks are simply not focused on this space. This is where EQI has a unique proposition to enable this market to manage national and crypto assets in a single banking relationship

Digital custody: The four largest global custody banks hold more than $91 trillion in assets under custody and administration . This provides a huge opportunity for EQIBank, which is targeting the clients of these traditional banks that have so far refused to provide custody services for cryptocurrency

EQIBank will be joined by onshore jurisdictions in Europe and Asia in early 2019 to better meet demand from all of these markets. To apply for a bank account today please visit EQIBank.com.

*** END ***

For media inquiries contact
Jasmin Athwal
Chameleon
eqi@madebychameleon.com
020 7680 5500

For more information on EQIBank contact:
Clinton Nicholson
info@eqibank.com

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Providing local and international support for project to deliver a Mauritius based International Derivatives and Commodities Exchange Ecosystem

London, Mauritius 25 June 2018. GMEX Group, a global provider of multi-asset exchange trading, post trade business solutions and technology is pleased to confirm that, through the GMEX Market Advancement Programme (GMEX MAP), the company has taken a leading role in the initial consortium to launch the Mauritius International Derivatives and Commodities Exchange (MINDEX), envisaged to become a multi-commodity and derivatives exchange platform with full regulatory oversight by the Mauritius Financial Services Commission.

Following the opening of its regional headquarters in the Mauritius International Financial Centre (IFC) last year, GMEX has been working closely with the British High Commission Mauritius and Department for International Trade (DIT) Mauritius. The DIT engaged with the GMEX at the start of the investment journey and has actively supported the company by introducing and facilitating meetings with key stakeholders, including the Financial Services Promotion Agency and the Mauritius Board of Investment (now both part of the Economic Development Board) as well as key Ministers.

The GMEX consortium led investment in the MINDEX project amounts to $35million to build a gold refinery, a secure vault, launch of an advanced technologically enabled spot exchange, derivatives exchange and clearing house. This is expected to create 104 direct jobs over 2 years and an additional 408 new secondary jobs over the next 2 years in Mauritius.

The Department for International Trade’s Minister for Investment Graham Stuart MP said:
“As an international economic department, we are pleased to be working with GMEX in Mauritius on an investment which will sustain and create jobs in Mauritius and the UK. The MINDEX project will support an ecosystem which creates opportunities in gold mining, refining, storage, recycling, and in commodities trading and financial technology.

We will continue support companies’ overseas investments where there is benefit to the UK by offering practical support to investors, facilitating introductions to ease market entry and using our expertise to explain political sensitivities and cultural differences to British businesses.”

Hirander Misra, CEO of GMEX Group said:
“Without DIT involvement and support there would have been much less likelihood that the investment would have gone ahead as quickly and smoothly as it has.” He added, “DIT, the British High Commission in Mauritius and wider UK Government played a fundamental role in facilitating increased confidence and positioning through its activities leading to economic benefits for Mauritius and the UK.”

Based on GMEX analysis, the successful implementation of the MINDEX project will result in the real GDP growth of Mauritius increasing to 4.1% instead of the estimated 3.9%, while GDP per capita will increase to MUR 0.388M as compared to MUR 0.387M estimated by MCB Focus. The total effect on the GDP over a 3-year period will amount to USD 53M (MUR 1,850M).

This is expected to result in an increase in exports and repatriated profits back to the UK estimated at £100mn with an estimated 1,000 domestic jobs expected to be created over a 5-year period, which will facilitate additional UK GDP growth.

*** End***

Media Contact>

GMEX Group
Melanie Budden
The Realization Group
+44 (0)7974 937 970
melanie.budden@therealizationgroup.com

DIT
Joe Dibben
Media Officer and Press Secretary to the Parliamentary Under Secretary of State
+44 (0)207 008 6557
joe.dibben@trade.gov.uk

About MINDEX Holdings Limited
  • MINDEX Holdings Limited – The holding company for the MINDEX ecosystem
  • MINDEX Clearing Limited – Will operate as the central counterparty (CCP) clearing house regulated by the Mauritius Financial Services Commission (FSC) to clear all trades executed on MINDEX Limited.
  • MINDEX Limited – Will operate a multi-asset Derivatives Exchange regulated by the Mauritius Financial Services Commission (FSC).
  • MINDEX Spot Limited – The forthcoming marketplace for the electronic trading of standardised physical and digital spot commodity contracts for gold, precious metals and other commodities. (To be incorporated)
  • MINDEX Vault Limited –The proposed secured storage depository solution for gold and other precious metals. (To be incorporated)
  • MINDEX Refinery Limited – The proposed world class smelting, refining and recovery of gold and other precious metals to the highest standards. (To be incorporated)

For more information visit www.mindex.mu or follow us on Twitter @MindexHoldings

About GMEX Group Limited

GMEX Group is a set of companies that offer sustainable and innovative solutions for a new era of global financial markets. Providing business expertise, the latest technology, connectivity & operational excellence delivered through an aligned partnership driven approach. We use our extensive market infrastructure experience and expertise to create an appropriate strategic master plan with exchanges, clearing houses, depositories, registries and warehouse receipt platforms.

Our key business solutions enable the creation and operation of cost effective electronic exchanges and post trade infrastructure in multiple asset classes including equities, debt, FX, derivatives, commodities, cryptocurrencies and digital assets. We operate in both developing and developed markets through the establishment of cohesive business and technology ecosystems. GMEX offers the added benefit of interconnection to multiple partner exchanges, to create global networks of liquidity.

For more information visit www.gmex-group.com or follow us on Twitter @GMEX_Group

About DIT

The Department for International Trade supports and encourages UK businesses to drive sustainable international growth, and seeks ensure that the UK remains a leading destination for international investment and maintains its number one position for international investment stock in Europe. It also seeks to open markets and build a trade framework with new and existing partners which is free and fair, and use trade and investment to build a Global Britain, promoting prosperity, stability and security worldwide.

For more information visit www.gov.uk/government/organisations/department-for-international-trade or follow us on Twitter @tradegovuk

About Mauritius

Mauritius has a strong regulatory framework and is recognized as having implemented the highest internationally agreed standards. The country is one of the first jurisdictions to be included in the Organisation for Economic Cooperation and Development (OECD) White List.

In addition to its ecosystem and proven track record in global investments, the Mauritius IFC has a number of bilateral treaties for double taxation and investment protection in place across Africa and the Rest of the World; and is currently growing to include firms delivering a range of bespoke financial products for Africa.

Mauritius is a member of a number of regional and global organisations including Southern African Development Community (SADC), the Common Market for Eastern and Southern Africa (COMESA), the Indian Ocean Rim Association for Regional Cooperation (IOR-ARC), and the African Union (AU). As a reputable IFC, the country also adheres to best norms as set by organisations like IOSCO, IAIS, Financial Action Task Force (FATF) and the IFSB.

Please see this case study for more information.

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  • MINDEX ecosystem will create multi-commodity spot and derivatives platforms, clearing house, secure vault storage, gold refinery and digitalised assets, with operations going live in Q4 2018
  • Project has been targeted and facilitated by the by Economic Development Board (EDB) of Mauritius for the setting up of the exchange in Mauritius.
  • Financial Services Commission of Mauritius (FSC) has approved the application in principle to allow the set up of the derivatives exchange and advanced real-time central counterparty (CCP) clearing house and will provide ongoing regulatory oversight
  • Direct injection of USD $35M into the Mauritian Economy with 512 new jobs estimated to be created over 2 years
  • MINDEX will serve as an aggregation point for all the ethically sourced gold coming out of Africa
  • Reputation of Mauritius as a sophisticated and innovative regional International Financial Centre (IFC) and major trading centre to be enhanced

*****

Mauritius 25 June 2018. GMEX Group (GMEX), a global provider of multi-asset exchange trading, post trade business solutions and technology is pleased to announce it will launch a Mauritius based International Derivatives and Commodities Exchange (MINDEX) ecosystem.

The setting up of a MINDEX ecosystem was initially an initiative first announced in the National Budget 2016/2017, and the GMEX-led private sector consortium has been targeted and facilitated by the Economic Development Board of Mauritius (EDB) to set up the Exchange in Mauritius.

MINDEX Holdings Ltd was formed in 2017 with the consortium of sponsoring companies including GMEX and Five Rings Commodities SA, a leading independent gold trading house based in Luxembourg. The initiative is also supported by the Department for International Trade and the Foreign and Commonwealth Office of the UK Government, with GMEX Group being headquartered in London, UK.

MINDEX will initially focus on gold and will incorporate a full ecosystem, from the mine to the consumer, incorporating ethical physical mining supply, set up of a world class refinery, trusted secure vault storage, recycling, an Over-the-Counter (OTC) electronic spot trading venue, an electronic derivatives exchange and an advanced real-time central counterparty (CCP) clearing house to be set up to the highest CPSS-IOSCO standards. The derivatives exchange and CCP will be subject to ongoing regulatory oversight by the Financial Services Commission of Mauritius (FSC).

MINDEX operations are expected to commence in Q4 2018. The objective is for the exchange to become a hub for African trade to include:

  • Digitalised gold buying and selling on exchange based firmly on physical assets underpinned by Blockchain technology;
  • Gold pre-financing, digitalised borrowing and lending against electronic receipts;
  • Highly secure digital and physical gold settlement and custody;
  • Derivative contracts on gold and subsequently other precious metals, FX and agricultural products.

The economic benefits of MINDEX will be a direct injection of USD $35M into the Mauritian Economy with 512 new jobs estimated to be created over 2 years of which 104 will be direct jobs and 408 will be secondary jobs providing ancillary services. The total cumulative trade volume over the next 5 years is estimated to be x2.27 the gross GDP of Mauritius. After 5 years, the volume of transactions traded on the MINDEX Exchange is expected to nearly match the GDP of Mauritius as USD $30.3Bn is projected to be traded over a five year period. It could result in $18.3M of additional tax revenue for Mauritius over 5 years.

Hirander Misra, CEO of GMEX Group and Chairman of MINDEX commented:
“The MINDEX ecosystem will become a trusted hub for ethically sourced gold from Africa, which will lead to job creation, GDP growth and International Financial Centre (IFC) development not only in Mauritius but also result in increased local investment, cheaper access to finance, more output, additional tax revenues and an increase in export income for African gold origination countries.

He added, “This will result in an increase in national GDP and act as the catalyst to develop interlinked financial centres across Sub-Saharan Africa resulting in increased inter-Africa trade and internationalisation.”

Charles Cartier, Chairman of the Economic Development Board commented:
“The setting up of the MINDEX ecosystem in Mauritius will deepen the depth and breadth of our offering in the capital markets segment.

It will not only fill in the current vacuum that exists in the derivatives area, but it will also provide international investors with sophisticated instruments for hedging risks, such as currency and foreign exchange, when investing in the African Continent.

MINDEX is in line with the Government’s vision of encouraging higher value-added services in the Mauritius International Financial Centre (IFC), notably for mitigating risks and enhancing efficiency for investments in Africa and other emerging markets.”

The British High Commissioner to Mauritius, H.E Keith Allan said:
“Mauritius and the UK have a long history of trade and investment. The Department for International Trade and the Foreign and Commonwealth Office are delighted to support the launch of the MINDEX project from GMEX Group. The MINDEX project will create a significant amount of jobs both in Mauritius and the UK. In addition to the initial investment, GMEX plans for the further expansion and development of the information technology and financial intermediation sectors will enhance the Mauritian economy over the next 10-20 years and provide a real boost to Mauritius’ growing reputation as a regional financial centre.

The UK services sector is hugely successful and is in high demand in Mauritius and around the world. This latest initiative will strengthen our existing bilateral trade relationship and ensure that UK-Mauritius trade and investment continues to be successful, innovative, and dynamic.”

*** End***

Media Contacts

Samantha Seewoosurrun
Acuitas Communications
(+230) 5772 4400
samantha.seewoosurrun@acuitascomms.com

Notes to Editors

Extract from National Budget 2016/2017 presented on 29 July 2016 delivered by the Hon. Pravind Jugnauth MP (then Minister for Finance and Economic Development)
““…we are opening our country to gold business that will encompass a wide spectrum of high value-added activities, ranging from refinery of gold, producing gold bars, setting up top end jewellery processing units, vault facilities and to trading of gold and bullions on our new commodity exchange. The exchange will also facilitate trade in diamond and other precious metals.”

About MINDEX Holdings Limited
  • MINDEX Holdings Limited – The holding company for the MINDEX ecosystem
  • MINDEX Clearing Limited – Will operate as the central counterparty (CCP) clearing house regulated by the Mauritius Financial Services Commission (FSC) to clear all trades executed on MINDEX Limited.
  • MINDEX Limited – Will operate a multi-asset Derivatives Exchange regulated by the Mauritius Financial Services Commission (FSC).
  • MINDEX Spot Limited – The forthcoming marketplace for the electronic trading of standardised physical and digital spot commodity contracts for gold, precious metals and other commodities. (To be incorporated)
  • MINDEX Vault Limited –The proposed secured storage depository solution for gold and other precious metals. (To be incorporated)
  • MINDEX Refinery Limited – The proposed world class smelting, refining and recovery of gold and other precious metals to the highest standards. (To be incorporated)

For more information visit www.mindex.mu or follow us on Twitter @MindexHoldings

About GMEX Group Limited

GMEX Group is a set of companies that offer sustainable and innovative solutions for a new era of global financial markets by being a global provider of innovative multi-asset exchange trading and post trade business solutions and technology ecosystems.

Providing business expertise, the latest technology, connectivity and operational excellence delivered through an aligned partnership driven approach. We use our extensive market infrastructure experience and expertise to create an appropriate strategic master plan with exchanges, clearing houses, depositories, registries and warehouse receipt platforms.
Our key business solutions enable the creation and operation of cost effective electronic exchanges and post trade infrastructure in multiple asset classes including equities, debt, FX, derivatives, commodities, cryptocurrencies and digital assets. We operate in both developing and developed markets through the establishment of cohesive business and technology ecosystems. GMEX offers the added benefit of interconnection to multiple partner exchanges, to create global networks of liquidity.

The GMEX Market Advancement Programme (MAP) is all about partnerships and creating an ecosystem with exchanges and post trade market infrastructure operators to deliver centralised, decentralised & hybrid solutions in a collaborative fashion.

For more information visit www.gmex-group.com or follow us on Twitter @GMEX_Group

About Five Rings Commodities SA
  • Founded in 2012, an Domiciled in Luxembourg
  • Five Rings has differentiated themselves by a business approach based on capability build up, partnerships and innovative trading structures. The company’s focus resides in volume trading of ethical and ‘green’ precious metals sourced through off-take and spot transactions
  • The intention of Five Rings is to evolve into a leading independent gold trading house, by growing on the back of an expanding global footprint, infrastructure investments and significant added value
  • Five Rings combines local market insight with international positioning and has become a reference point of reliability and a partner of choice with producers and customers
  • Five Rings’ expertise in logistics and financing is coupled to an ability to assemble all types of deals, anywhere in the world. They offer a range of services including:
    • Trading physical doré gold and bullion
    • Financing & hedging
    • Refining & assaying
    • Secure storage
    • Worldwide secure deliveries

Please see this case study for more information.

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GMEX Group Limited – Global Markets Exchange Group (GMEX) is a London based provider of multi-asset exchange and post-trade technology and business solutions. It has a history of successful exchange support and establishment, and is able to provide a complete range of necessary exchange trading, clearing, settlement, electronic warehouse receipts, hybrid centralised and Blockchain based distributed ledger technology through its wholly owned subsidiary GMEX Technologies Limited.

Through its Market Advancement Programme (MAP), in addition to providing services to exchanges in the UK and the USA, GMEX also provides services to exchanges, clearing houses and central securities depositories across developing economies – for example an agricultural commodity exchange in Malawi, as well as exchanges in Uganda, India, Vietnam and Tajikistan. GMEX generates 95% of its income from overseas, all of this coming from markets outside of the EU.

In 2016 the Government of Mauritius promoted the Mauritius International Derivatives and Commodities Exchange (MINDEX) project, envisaged to become a multi-commodity and derivatives exchange platform. The project would establish a modern precious metal refinery, a spot and derivatives exchange, secure vault storage, and a clearing house.

GMEX saw this as a good opportunity to invest; it was an opportunity to create an aggregation centre for all of sub-Saharan Africa and Mauritius provided a good local talent pool and business climate.

British High Commission Mauritius and DIT Mauritius within it engaged with the GMEX at the start of the investment journey and actively supported GMEX by giving them high-level visibility within the Mauritian Government. Activities included:

  • inviting the CEO of GMEX to be a guest speaker at the UK-Mauritius FinTech conference in January 2017;
  • introducing and facilitating meetings for GMEX with key stakeholders, including the Financial Services Promotion Agency and the Mauritius Board of Investment (now part of the Economic Development Board) as well as key Ministers;
  • providing government-government contacts in other jurisdictions where GMEX was active, across multiple sectors and government departments, to further enhance their reputation in Mauritius.

In 2017, MINDEX Holdings Ltd was formed and GMEX became the lead member of the initial consortium to invest in the project. GMEX consortium led total investment in this project amounts to $35million, which over the next three years is expected to create 104 direct jobs over 3 years and an additional 408 new secondary jobs over the next 2 years in Mauritius. Based on GMEX analysis, the real GDP growth of Mauritius will increase to 4.1% instead of the estimated 3.9%, while GDP per capita will increase to MUR 0.388M as compared to MUR 0.387M estimated by MCB Focus. The total effect on the GDP over a 3 year period will amount to USD 53M (MUR 1,850M). The investment is expected to sustain 20 direct jobs in the UK and lead to the creation of 20 more jobs over the next 2 years. Additionally it will result in substantial opportunities for other UK companies, e.g. in the financial services, logistics and warehousing sectors not only in Mauritius but also across 20+ countries GMEX is engaged. This will result in an increase in exports and repatriated profits back to the UK estimated at $125mn with 5000 domestic jobs expected to be created over a 5 year period all of which will facilitate additional UK GDP growth. Without DIT involvement and support there would have been much less likelihood that the investment would have gone ahead as a result of reduced confidence and positioning. DIT therefore played a fundamental role in facilitating this through its activities.

Spot trading at MINDEX is due to go live in Q4 2018; it is envisaged that the commodity exchange will become:

  • the first complete ecosystem for gold from the mine to the consumer;
  • an access point for ethical, traceable sources of Gold from Africa; and
  • a hub of recycling for African Gold.

The long-term vision is to expand the exchange to become a hub for African agricultural trade and to include:

  • Derivative contracts on gold, FX and agricultural products;
  • Borrowing and lending of gold and a gold cryptocurrency based firmly on physical assets.
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