- Extensive multi-party operational run thoroughly tested real-time trading and other exchange activities
- Successful completion of exercise demonstrates that 1X processes are fully operational and secure
- Multiple accredited investors in Singapore and around the Asia region took part in robust trading simulation, supported by fully-licensed counter-parties
Singapore-based global private exchange CapBridge Platform Pte Ltd ("1exchange", "1X" or "Platform") has successfully conducted an end-to-end operational run of its online exchange and trading facilities. This marks a major milestone in one of Singapore's first regulated private securities exchange.
In a comprehensive and rigorous simulation, multiple investors from Singapore and around the region thoroughly tested the functionality and robustness of key processes and operations on the 1X private securities trading platform.
Choo Haiping, CEO of 1X, said, "We are extremely pleased that this exercise has demonstrated the robustness and security of our functionalities and processes. As one of the first regulated private securities exchanges in Singapore, we have worked closely with our partners to ensure a secure, efficient, and optimal environment for private securities trading to take place. This exercise has underscored the clear viability of the CapBridge and 1X integrated approach towards capital raising and providing access for accredited investors to trade in private equities."
The test began in February where multiple functions such as investor onboarding, client due diligence, listing, order creation, trade match, payment transfers and register updates were tested by all participants.
During the simulation, 1X conducted Anti-Money Laundering and Know-Your-Client and (KYC) processes for all investors. Investors used Singapore GovTech's MyInfo to provide verified information within minutes to facilitate KYC. MyInfo is an e-service provided by the Singapore government that allows users to control and share their personal data with approved platforms.
Notably, the exercise involved fully-licensed and regulated third party service providers -- including trusts and escrow agents. The service providers performed their respective roles on a bona fide transaction basis.
Lynn Pang, General Manager of Trust Administration at Equiom Singapore, said, "We are glad to participate in this ground-breaking initiative and are pleased that the 1X platform is fully-functional. As a global trust administrator serving many high net worth individuals, it is critical that a private exchange has secure and efficient trading processes in order to provide proper safeguards and assurance for investors. We look forward to the platform providing access to individual investors seeking the ability to trade in growth-stage private companies."
A legal entity was created for the sole purpose of acting as the issuer, and investors across the region with operational Singapore bank accounts actively bought and sold the representative securities of the issuer. As part of the exercise, investors transferred funds from several local banks to the designated escrow bank account based in Singapore.
In November 2018, 1X was granted a Recognised Market Operator (RMO) license by the Monetary Authority of Singapore. This makes 1X one of the few regulated and licensed private securities exchanges in Singapore and the region. The Platform is an affiliate of CapBridge, a licensed investment syndication platform, and is also an investee of Singapore Exchange (SGX).
For accredited investors seeking private equity returns via private company opportunities that are typically not accessible to individuals, CapBridge enables them to directly discover and access such opportunities outside of public stock exchanges.
CapBridge recently introduced "Preferred Access", the exclusive investment product designed for individual investors that enables co-investments alongside expert lead investors in private investment opportunities from as low as SGD$5,000. Through this innovative product, accredited investors can invest smaller amounts across multiple deals to diversify their investment portfolios.
With SGX as a shareholder and strategic partner, CapBridge and 1X together offer a holistic avenue for deserving family businesses and growth companies to fundraise, and for investors to have greater flexibility to monetise and recycle capital.
Combining a primary capital raise through CapBridge with secondary trading opportunities via the 1X private exchange, is beneficial in many ways to the various market participants, and for the wider capital market ecosystem.
With this successful multi-party operational run of 1X systems and processes, 1X will now be onboarding its first batch of private companies as well as individual accredited investors to participate in the trading of private securities.
