Chi-X Australia is on target to commence exclusive trading of Transferable Custody Receipts (TraCRs) on its investment products marketplace in early February 2017.
TraCRS (pronounced tray-sirs) are based on an underlying asset that is a member of the primary index of a specified offshore market, which will initially include the main US exchanges NYSE and Nasdaq.
Australian investors will be able to trade on an Australian exchange to invest in the top US stocks.
John Fildes (pictured), CEO of Chi-X Australia, says: “TraCRs will be a game changer for Australian investors as for the first time they will be able to invest in some of the world’s biggest companies in Australian dollars, on an Australian exchange, protected by Australian regulations.
“Both retail and institutional investors face the problem of diversifying their portfolio and gaining meaningful exposure to global growth stories and the new economy. While many Australian listed companies, ETFs and LICs are delivering underlying offshore assets and exposure in an Australian listed stock, to date no one has been able to provide direct beneficial ownership of the US powerhouses that TraCRs will deliver.”
Last month ASIC gave notice of its intention to modify the market integrity rules to include oversight of TraCRs.
“With trading on Chi-X’s investment products platform steadily building – warrants turnover has more than trebled this year and ETF volumes have really taken off with over half a billion dollars traded per month – and TraCRs launching in 2017, Chi-X is delivering innovation and providing Australian brokers, investors and fund managers with asset and product diversification, and access to offshore markets and new investment opportunities,” Fildes says.
