Seychelles Securities Exchange (Trop-X)

Seychelles Securities Exchange (Trop-X (Seychelles) Limited), is the only licensed securities exchange in Seychelles and operates markets for the listing and trading of equities, debt, derivatives, FX products and more. Located on Eden Island, Trop-X was launched in November 2012 and went live August 2013 with the listing of State Assurance Corporation of Seychelles (SACOS) on the Main Board of its Equities Market. As at 6th April 2016, Trop-X has 4 listed stocks on its three equities boards and a total market capitalization of USD 41.3 million.

History

Trop-X (Seychelles) Limited was incorporated in the Republic of Seychelles in 2011 and received a license from the Financial Services Authority (FSA) to establish and operate the Seychelles Securities Exchange in 2012. The exchange’s doors opened for trading on 8th August 2013 with the listing of SACOS, one of the main insurance companies in Seychelles. In July 2014, Trop-X later launched the Derivatives Market

About Trop-X

The Seychelles Securities Exchange (“Trop-X”) was launched in August 2013 with the listing of the State Assurance Company of Seychelles (SACOS) to the Main Board of the Equities Market. In September 2014 Trop-X launched its Derivatives Market with the listing of multiple US Dollar denominated and settled contracts for differences (CFDs) on major international currency pairs, commodities, equities indices, single stock equities from the US and UK markets and ETFs.

Trop-X operates a vertically integrated fully electronic securities exchange, clearing, settlement and registry platform with real time gross settlement which eliminates settlement risk for broker members and their clients. Listing and trading is available in US Dollars (USD), Euros (EUR), British Pounds (GBP), Seychelles Rupees (SCR) and South African Rand (ZAR). Trop-X aims to become a world class exchange serving as an alternative market for the AMEA (Africa, Middle East and Asia) markets. Listing rules and market rules are in line with international best practices and in line with latest IOSCO principles, but adapted for Seychelles and the AMEA taking into consideration the types of products being offered and unique framework within which many issuers and investors must operate in the region. Seychelles offers a suite of laws and resulting products making it ideally suited for creation and listing of alternative listed securities such as various types of investment funds (master-feeder, funds of funds, ETFs, actively managed ETFs, hedge funds, venture capital funds and more), derivatives, structured products and debt programmes all of which can be denominated and settled in any of several different currencies given that there are no exchange control restrictions in Seychelles.

Trop-X offers membership opportunities to both local securities dealers and others who are members of exchanges in any “recognized jurisdiction” (i.e. remote membership) as provided for under the Securities Act. Recognized jurisdictions include all of the major financial centers and offshore financial centers including fellow African Union members South Africa and Mauritius.

Trop-X is a Correspondent Member of the World Federation of Exchanges (WFE), a full Member of the Committee of Southern African Development Community Stock Exchanges (CoSSE), a full Member of the African Securities Exchanges Association (ASEA) and a partner exchange of the United Nations Sustainable Stock Exchanges Initiative.

Markets

Equities Market

The Exchange currently offers three equities boards on which companies can list; namely the Main Board, Small and Medium Enterprise Board (SME) and Venture Capital Board (VCAP).

As at 6th April 2016

Symbol Company Board Sector SAC State Assurance Corporation of Seychelles Main Insurance BOD Bodco Limited SME Wholesaler SHI Seaharvest Investment plc VCAP Investment holding SCRF Southchester RF Main Debt issuance

Derivatives Market

Trop-X offers a broad range of USD settled listed derivatives on underlying assets much including currencies, commodities, equity indices, equity securities, bonds, ETFs and interest rates. Through its derivatives market, Trop-X provides a neutral, level playing field for all market participants, regardless of status, size or activity levels.

Debt Market

Trop-X launched its Debt Market March 2016 with the listing of a South African Rand (ZAR) denominated short term money market program. The Debt Market includes provisions for issuances of all types including convertible bonds, money market instruments, zero coupon bonds and more.

Clearing Agency

AfriClear Limited

AfriClear Limited is a licensed clearing agency that is regulated by the Seychelles Financial Services Authority (FSA) to provide clearing and settlement services under the Seychelles Securities Act. It currently handles clearing and settlement services for Trop-X (Seychelles) Limited.

Securities Registry

AfriDep Limited

AfriDep Limited provides registry services to issuers listed on Trop-X (Seychelles) Limited. AfriDep is a licensed Securities Facility under the Seychelles Securities Act.

Preamble to FSA

Established under the Financial Services Authority Act, 2013, the Seychelles Financial Services Authority is the regulator for non-bank financial services in the Seychelles. Previously known as Seychelles International Business Authority (SIBA), it is the Authority responsible for licensing, supervision and development of the non-bank financial services industry of the Seychelles.

Trading Hours

Trop-X Equity market’s normal trading hours are from 10:00 to 16:00 (GMT +4) on all weekdays except Saturdays, Sundays and public holidays.

Fees and taxes

Equity Trading Fees

Equity Trading Fees 0.15%

Guarantee Fund 0.005%

Trade corrections USD 12 or SCR equivalent

All Off Market Trades 0.25%

Clearing Fees 0.15%

Depository fees 0.10%

Taxes

Taxes applicable for listed companies

Stamp Duty Exempted Sanction Duty* Exempted Corporate Tax 25%

• applicable on the purchase or acquisition by non-Seychellois of shares of companies listed on the exchange and owning immovable property or rights

References Listing Fees: http://trop-x.com/sites/default/files/documents/page/2015/01/Listing%20Fees%20Dec%202014.pdf

External links: Website of Trop-X (Seychelles) Limited African Securities Exchanges Association Homepage Committee of SADC stock exchanges Homepage World Federation Exchanges Homepages Seychelles Financial Services Authority Homepage