Valereum ups stake in GSX after paying £2.9m for 50%

Rick Steves

Valereum and the Global Stock Exchange Group (GSEG) have jointly announced that they have exercised the option to increase Valereum’s interest in the Gibraltar Stock Exchange (GSX) from 80% to 90%. The GSX is a regulated exchange market that also holds an Multi-Lateral Trading Facility (“MTF”) license for the listing of specific forms of security […]

Valereum and the Global Stock Exchange Group (GSEG) have jointly announced that they have exercised the option to increase Valereum’s interest in the Gibraltar Stock Exchange (GSX) from 80% to 90%.

The GSX is a regulated exchange market that also holds an Multi-Lateral Trading Facility (“MTF”) license for the listing of specific forms of security under the European Markets in Financial Instruments Directive (“MiFID”).

Both firms have also executed the first stage of the revised agreement, announced on 28th January 2022, whereby Valereum paid the GSEG a total of £2.9m and taken security over the first 50% of the shares of the GSX. The remaining option over 40% of the shares in GSX will be exercised in due course.

The deal awaits approval by the Gibraltar Financial Services Commission, the jurisdiction’s financial watchdog.

The final transfer and registration of all transfers in the shares in the GSX to reach the agreed final 90% ownership is also subject to GFSC approval and any shareholder approval required by AQUIS.

Richard Poulden, Chairman of Valereum, commented: “This is a very significant step forward for Valereum towards taking control of the Gibraltar Stock Exchange. Valereum directors are working closely with the GSX to plan for its future path.

Fully regulated exchange for shares and cryptocurrency

It was in October 2021 that Valereum and GSEG first announced the change in ownership. The company’s plan was to buy GSX in order to establish the exchange as a fully regulated, integrated fiat and digital exchange.

As such, GSX clients can use cryptocurrencies to buy fiat debt and equity instruments and still comply with all anti-money laundering requirements. The operator will accept all major cryptocurrencies including Bitcoin, Dogecoin, Cardano, Ethereum, and Tether.

Cryptocurrency holders will have the ability to have a direct, verifiable holding in fiat securities, while using exchange technology from established providers and updated with full front-to-back trading and clearing functionality.

The revised agreement was announced in January 2022, with Valereum being expected to acquire 90% of GSX to create the world’s first bourse where shares and cryptoassets can be traded.

“This will give listed instruments on the GSX access to a regulated pool of crypto capital that is not available anywhere else, and it will give crypto currency holders the ability to have a direct, verifiable holding in fiat securities”, said Valereum in a statement.

Read this next

Retail FX

Italian watchdog red flags Olympus Brokers, UnicoFX and Allfina Group

Italy’s Commissione Nazionale per le Società e la Borsa (CONSOB) has shut down new websites in an ongoing clampdown against firms it accuses of illegally promoting investment products in the country.

Retail FX

XTB revenues hits zł1.45 billion in 2022, Q4 earnings disappoint

Poland-based Forex and CFDs broker, XTB has reported its final results for Q4 of 2022 and the full fiscal year ending on December 31, 2022, showing one of its most successful corporate years.

Executive Moves

Lirunex Limited recruits Waleed Salah as head of MENA sales

Maldives-based brokerage firm Lirunex Limited has secured the services of Waleed Salah, who joined the company in the role of its head of sales for the MENA region.

Executive Moves

Trading 212 parts ways with co-founder Borislav Nedialkov

Trading 212 has a void to fill at its FCA-regulated business in London, following the departure of two key players, Raj Somal and Borislav Nedialkov.

Digital Assets

Binance acquires troubled crypto exchange GOPAX

Binance, the world’s largest digital asset trading platform, has reportedly acquired a majority stake in the troubled South Korea-based cryptocurrency exchange GOPAX.

Digital Assets

Kraken exits Middle East, closes UAE office

Digital currency exchange Kraken will close down its operations in Abu Dhabi, UAE and lay off the majority of its team focused on the Middle East and North Africa.

Industry News

CFTC comments on ION Cleared Derivatives issues after Russian-linked hack

“The ongoing issue is impacting some clearing members’ ability to provide the CFTC with timely and accurate data. As this incident unfolded, it became clear that the submission of data that is required by registrants will be delayed until the trading issues are resolved.”

Industry News

FCA took down 14 times more misleading ads in 2022 thanks to technology

The FCA has made significant improvements to the digital tools it uses to find problem firms and misleading adverts. These improvements have enabled it to work through a much larger number of cases compared with 2021.

Executive Moves

HKEX appoints ex-Goldman Sachs Matthew Cheong to lead platform’s focus on derivatives

“He has worked for a number of the world’s leading investment banks and his experience will be invaluable to HKEX as we continue to enhance our derivatives product offerings and build on our innovative and robust platform business, connecting capital with opportunities.”

<