PNGX signs MoU with entities to explore digital solutions

Business

THE Papua New Guinea Stock Exchange (PNGX) has signed a memorandum of understanding with two other entities to explore the development of world-leading digital solutions for Pacific Islands’ capital markets.
The two are XBourse Australia and Pacific Capital Markets Development (PCMD).
The work will begin in PNG.
The objectives are to enhance capital market efficiency, promote market liquidity, attract investment and reduce market risk in the Pacific.
The PNGX, XBourse and PCMD will work together to explore the phased development of digital market infrastructure and services:

  • MULTI-currency post-trade settlement and registration solutions for public and private markets; including equities, bonds and climate instruments.
  • CENTRAL securities depositories and registries;
  • CUSTODIAL services for international investors;
  • INTEGRATED commercial and regulatory solutions for SMEs; and
  • SUPERANNUATION registry solutions.

It is intended that the technology platforms will be integrated with central bank payment systems.
The initial focus of the co-operation between the parties will be PNG before exploring opportunities in other Pacific countries.
PNGX chairman and PCMD director David Lawrence said: “We are very excited to be working with XBourse (whose) digital ledger technology (blockchain) and smart contracts have the potential to turbo-charge the public and private capital markets in the Pacific.
“We have a vision to provide an integrated solution for Pacific companies of all sizes offering faster access to debt and equity capital, instantaneous and risk-free settlement of trades, a central securities depository to make trading easier for all market users, a custodial platform to meet the needs of international investors, and the potential for expansion into other services, such as superannuation technology services.
“XBourse is a market leader in the financial technology sector and has been working in recent years with globally recognised technology partners to develop a range of integrated and innovative market platforms and digital solutions that can be readily deployed into all types of markets, covering both existing and new assets, such as climate, that are rapidly being digitised.”
XBourse chief executive officer and founder Tony Mackay said: “XBourse is excited to be working with PNGX and Pacific Markets Capital Development to identify ways XBourse’s technology solutions can be implemented in the PNG market.
“Our experience has shown that better market infrastructure is vital to promote efficient use and allocation of capital and to attract the interest of investors large and small.”

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