Record business flows, the launch of a new professional bond market, the establishment of a sustainable market segment and a growing number of recognitions and memberships are just some of the latest developments at The International Stock Exchange (TISE), according to Kay McCarthy, Head of Jersey Office at TISE.
Established in 1998, TISE is a regulated market which is uniquely positioned within the European time zone but outside both the UK and the EU. We have staff operating across five international finance centres, including Jersey, serving clients globally. Today, the Exchange has more than 3,000 listed securities on its Official List with a total market value of more than £450 billion.
A growing majority of newly listed securities on TISE are introduced by member firms, such as law firms, banks, fund administrators or trust and corporate service providers, based in Jersey. As such, we are proud to be integral part of Jersey’s financial services infrastructure and the island’s offering to the wider world.
Business trends in 2021
Following strong business flows in 2020, volumes of new listings accelerated during the first half of 2021, despite the ongoing global uncertainties of COVID-19 and the transition into a post-Brexit environment. There were 507 securities listed on TISE between the start of January and the end of June 2021, which represented a 30% increase on the previous record set in 2020 for the number of new listings on the Exchange during the opening six months of a year.
During the first half of 2021, we continued to see strong listing volumes of debt securities which finance private equity-backed transactions. We also retained our position as one of the leading European venues for listing high yield bonds, with 59 securities listed in the first half of the year, including issuances from pan-European telecommunications firm Altice, cruise company Carnival, beauty business Coty, hire car firm Hertz and supermarket chain Iceland. We have also seen strong growth in securitisation business, with 45 securities listed on the market in the first six months of the year, which is more than in the entirety of 2020 and included transactions involving leading financial services firms Barclays, CVC and Morgan Stanley.
“Volumes of new listings accelerated during the first half of 2021, despite the ongoing global uncertainties of COVID-19 and the transition into a post-Brexit environment.”
In the first six months of 2021, TISE has also continued to see growth in listings of UK Real Estate Investment Trusts (REITs). There were 10 new UK REITs listed in that period, which is more than in all of 2020 and included REITs backed by Man Group and Starwood Capital Group. There were 38 UK REITs listed on TISE at the end of June 2021, which represented more than 40% of the total listed UK REIT market.
Products and Markets
While TISE is already a major professional bond listing venue, it has been important to build on this position through the launch of our new Qualified Investor Bond Market (QIBM). The QIBM represents a dedicated exchange offering for the listing of bonds marketed to ‘qualified investors’ such as institutional, professional and other investors experienced and knowledgeable in bond investing. These enhancements ensure we are well positioned to attract a broader and deeper universe of bonds such as securitisations including Collateralised Loan Obligations (CLOs), derivative bonds, sovereign and public bonds.
In parallel to the launch of the QIBM we have also updated the Listing Rules for the Equity Market. Principally, these updates ensure that we are aligned with developing market trends in the US and the UK in relation to the listing of Special Purpose Acquisition Companies (SPACs). These updates ensure that TISE is a more attractive listing venue for SPACs and notably where there may be an institutional investor base. This complements our regime for REITs which has proved particularly attractive for those held by institutional investors and where today we are second largest market for listed UK REITs.
“While TISE is already a major professional bond listing venue, it has been important to build on this position through the launch of our new Qualified Investor Bond Market (QIBM).”
A key part of our strategy for the diversification of our products and markets is the implementation of a new price discovery and trading solution supplied by Avenir Technology. The platform is designed to operate on an auction basis, but with the ability to scale up and accommodate continuous trading if desired. This system will include all the necessary functionality and capacity required to deliver even greater value to our current equity issuers, as well as offering new products and services to a different range of potential clients.
Recognitions and memberships
The development of these products and markets is supported by a growing range of international recognitions and memberships for TISE. TISE is a ‘recognised stock exchange’ for the purposes of the Quoted Eurobond Exemption as applicable in both the UK and Ireland, and we are also recognised by the US Securities and Exchange Commission (US SEC), the Australian Securities Exchange (ASX) and the German regulator BaFin.
We are also increasingly an actively engaged participant of the international securities industry. TISE is already an Associate Member of the International Organisation of Securities Commissions (IOSCO) and the World Federation of Exchanges (WFE). Other official memberships, such as the Quoted Companies Alliance (QCA), have been extended through us joining the Association for Financial Markets in Europe (AFME), the International Capital Markets Association (ICMA), and the UN Sustainable Stock Exchanges Initiative (UN SSE).
Our membership of the UN SSE puts us at the heart of global efforts to encourage sustainable investment and provides additional credibility to the launch in July of Europe’s most comprehensive sustainable market segment, TISE Sustainable. It provides qualifying issuers and securities with enhanced connectivity, credibility, transparency and visibility among investors and as such, is an enabler for the flow of capital into investments that promote environmental, social and sustainable activities. The launch of TISE Sustainable and our membership of the UN SSE not only reflects our commitment to being part of the sustainable capital markets ecosystem, but it also complements Jersey’s credentials and its wider ambitions within the sphere of sustainable finance on the global stage.
This article was originally published in Jersey: First for Finance, Autumn 2021