FG Capital Markets has been approved as a sponsor member as well as a broker dealer of the Bahamas International Securities Exchange (BISX). The new industry entrant is a subsidiary of FamGuard Corporation. Patricia Hermanns, who serves as President of FamGuard and FG Capital Markets, noted that these steps constituted a part of a broader strategy of the company in expanding its thrust into the wealth accumulation and pension markets. She said, ”On a basic level, it will expand the ability of Bahamians to access the market, and we believe this will positively impact the dynamics of the purchase and sale of shares.”
Another Family Guardian subsidiary, FG Financial, has been created to provide fund administration services for the FG Capital Markets-managed FG Financial Fund Ltd. SAC. The sponsor membership status allows FG Capital to deliver mutual funds for listing directly on BISX and, already, it has obtained BISX approval for the listing of the Fund and three sub funds: FG Financial Class A Preferred Income Fund; FG Financial Class B Diversified Fund; and FG Financial Class C Growth Fund. BISX points out that this is the first domestic Segregated Accounts Company to be added to the exchange and highlights its ability to list funds of varied capital structures and currency denominations. The three accounts of the FG Financial Fund will each have their Net Asset Value (NAV) listed on BISX and posted on the Exchange's website.
There are now seventeen mutual funds listed on BISX.
Back in January, BISX CEO Keith Davies announced that Regulator Securities Commission of The Bahamas had approved the listing of secondary issues; effectively, it can now list additional securities that have been issued by publicly-listed companies already trading on the exchange. At that time, Mr. Davies said ”It’s a welcome benefit to our market, which needs securities. The more diverse options there are for investors, the greater the trading opportunities.” He pointed out that the initiative was designed to broaden the Bahamian capital markets by providing a platform on which holders of public companies’ debt securities could trade such instruments, linking them with investors who are active or potential traders of ordinary stocks.