Hg Exchange (HGX) announced today (September 14) that its founding members — PhillipCapital, PrimePartners and Fundnel — have started trading private company shares on the exchange. It also officially named Richard Teng as chairman.

HGX is Southeast Asia’s first member-driven private exchange which entered the Monetary Authority of Singapore (MAS) fintech regulatory sandbox on June 22 2020. The MAS has also granted HGX the opportunity to pioneer the listing and trading of both digital and non-digital capital market products, giving investors and issuers the freedom of choice.

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, greatly benefits issuers who seek partial liquidity or own a limited amount of shares, including employees of private companies with equity, gained via Employee Share Option or Employee Share Ownership plans.

The exchange offers the full spectrum of services — onboarding, verification and custodizing of securities — to facilitate digital transactions. Additionally, the one-off procedure, via the blockchain, allows investors to conduct subsequent sale of the same lot, through HGX, with ease.

Non-digital trading options are available to buyers and sellers making their first foray into the realm of digitized securities. The blend of established trading practices with disruptive technology paves the way for a bespoke investment solution. More importantly, it enables issuers to capitalize on HGX’s vast network of investors, brokers and dealers, while they trade in a way most familiar to them.

The 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.

Says Teng: “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 has a vast experience in the capital markets and most recently served as  chief executive officer of the Financial Services Regulatory Authority at Abu Dhabi Global Market. Prior to that, he was the chief regulatory officer of the Singapore Exchange. He started his career at the MAS where he served for 13 years.