The Dutch Caribbean Securities Exchange or the “DCSX” for short, is the exchange operating in the Dutch Caribbean region, established in 2009 in Curaçao.
The National Ordinance on the Supervision of Securities Exchange stipulates that the Ministry of Finance is the authority to issue a license to operate an exchange in Curaçao, albeit after close consultation with the Central Bank of Curaçao and Sint Maarten. DCSX is the only authorised securities exchange in the Dutch Caribbean licensed by the Minister of Finance.
In close cooperation with the authorities, the DCSX is assured to operate under a well-functioning yet practical supervisory environment. Furthermore, the DCSX is an affiliate of the World Federation of Exchanges. At the same time, the DCSX is a self-regulatory organisation subject to direct supervision by the Central Bank of Curaçao and Sint Maarten, an associate member of the International Organization of Securities Commissions (IOSCO).
At the DCSX, we realise that for the domestic and international business community to prosper, matured start-ups as well as small and medium-sized enterprises, must be in the position to attract capital on a regulated, practically- oriented exchange and to do so at fair costs. It is this start-up and SME community that the DCSX is focused on servicing.
At the DCSX, we have developed listing rules for the issuer tailored to the needs of the market. The emphasis lies on the disclosure of vital information in a cost and time-efficient procedure that guides the issuer through the administrative process. The DCSX ensures transparency for the investor and guarantees visibility for the issuer at all times. The listing fees of DCSX are kept highly competitive.
Our mission is to create prosperity by connecting investment opportunities to investors.
How Does It Work For The Issuers (The Companies Seeking a listing)?
Companies interested in listing need to contact one of our approved listing advisors to see whether it is convenient to list and what type of financial instruments would be most beneficial for the company. A list of our approved listing advisors can be found at www.dcsx.cw/listing-advisors
The listing advisor guides the issuer through the listing process. When the listing process is complete, the listing advisor, together with the issuer, then plans for a Road Show to obtain investors. The listing advisor will help the issuer select the appropriate brokers needed who have contacts with investors. These brokers have to be approved by the exchange. A list of our approved brokers can be found at www.dcsx.cw/list-brokers. Once the brokers are selected, the Road Show is on! Issuers and Investors meet through the brokers’ platform that is connected to the DCSX trading platform.
How Does It Work For Investors?
All investors interested in buying securities on the DCSX need to have a brokerage account at authorised brokers on the DCSX. So, the account of the investor is opened with the broker NOT the DCSX. The DCSX offers the platform that the brokers are able to use. We don’t have any direct contact with the issuers or investors. The listing advisor is the representative of the issuer when dealing with the exchange. And the brokers are in direct contact with investors.
As mentioned, before the DCSX is internationally oriented and looking forward for opportunities in the global market. Our new trading platform was launched on February 1, 2019 offering brokers a digital platform for trading.
Playing By The Rules
During the last few years, the DCSX platform has grown having more “players on the field”, more Listing Advisors, more Member Brokers and more listings. With that, the DCSX team has also expanded its “umpiring” over whether the players are playing by the rules.
Client Due Diligence and Compliance is central to our business. Our Listing Advisors must comply with the Rules for Listing Advisors and ensure that their listings are in compliance with the Listing Requirements.
At the DCSX Compliance department we maintain a rigorous inspection of documents received. For Example, for non-face to face clients, all received passports should be a clear colour copy and certified by a notary, lawyer or financial institution like a bank (not by the owner or a company representative). Some may think these requirements are “no brainers”, but we have encountered many instances where we initially receive insufficient or incomplete information.
Regardless of its industrial sector or country of origin (with a few exceptions), a legal entity may request a listing on the DCSX. The listing entails the issuance of securities, such as equities and bonds among others, through a public or private placement. The public placement is popularly known as the Initial Public Placements or “IPO” for short. With an IPO, the listed securities are offered to the investment public. A Private Placement, on the other hand, offers the sale of securities directly to a limited number of outside investors or is limited to the shareholders of the entity which may have to option to buy and sell shares among themselves. Both offering types, Private and Public, can be categorised as technical or tradeable listings.
Tradable listings are what is known as “traditional” listings with the main purpose to raise capital or provide liquidity to the shareholders. The purpose of technical listings is not to raise capital but to elevate the company’s profile on the market and to elevate the compliance level of the legal entity; at the same time, it is considered a preparation to become tradeable in the future on the DCSX trading platform.
How Does The Listings Process Work At The DCSX?
There are four main steps to follow:
Step 1: Partner Selection
The legal entity (the issuer) who wishes to list on the DCSX must select a Listing Advisor and a Broker or a set of Brokers. The Listing Advisor acts as coordinator between the issuer and the exchange at all times, both in the process of listing and throughout its life as a listed entity. The listing advisor will be accountable for the correctness of information and compliance with the listing requirements and ensures that the issuer fulfils its transparency requirements.
The Broker will oversee the buying and selling of the listed securities. The Broker, together with the Listing Advisor and the Issuer, will team up on a roadshow to promote the listing to interested parties. All interested parties / investors must open an account with the broker. Once the listing process is approved and completed the broker will offer access to its trading portal that is connected to the DCSX trading platform to their clients in order to buy and sell the listed securities. Unlike popular belief, the DCSX does not offer direct access to its trading platform to investors. All interested parties must have a brokerage account at the issuer’s selected broker or brokers approved by the DCSX.
Step 2: Preparation
After selecting the right partners, the next step includes the preparation for the listing. At this stage the Listing Advisor, together with the issuer, team up to prepare the Prospectus/Information Memorandum (in case of a public offering) or a, Offering Circular/Private Placement Memorandum (in case of a private placement). In both cases, the documents offer detailed information about the company, the securities listed and the related risks and projections. It is sometimes referred to as a “detailed business plan”. During this stage the Listing Advisor ensures to request all required legal documents as well as the audited financial statements in accordance with the listing requirements. At this stage, the DCSX not officially involved yet. It is up to the Listing Advisor to ensure everything is ready in accordance to the requirements to start the application/registration process.
Step 3: Registration
When all required documentation is complete, these are sent together with the application letter/forms to the DCSX for registration and processing of the application. The DCSX will internally review the received documentation and provide feedback to the Listing Advisor indicating whether received documents are in line with Local Requirements and International Directives.
Step 4: Listing
If the received documents are in line with the DCSX requirements, including the final version of the Information Memorandum, the DCSX then proceeds to send the documentation to the Listing Committee who will review the documentation on their part and provide inquiries which must be addressed by the Listing Advisor. If received feedback is satisfactory for the Listing Committee then approval will be granted for the admission to list or trade.
During their lifetime as listed entities, companies are required to communicate to the DCSX key information to the market, interim internal and (audited) annual statements, group management discussions and analysis, and in general any information that is of “material importance” for the investor, through their selected DCSX approved Listing Advisor in order to meet investor expectations in terms of transparency.
Curaçao: The Caribbean Getaway That Sets You Free
The DCSX is fortunate to be situated in Curaçao which is located in the Southern Caribbean, just off the coast of Venezuela. Curaçao is an autonomous country within the Kingdom of The Netherlands and, together with Aruba and Bonaire, it constitutes the "ABC" islands, or Leeward Antilles. Just 12° north of the Equator, Curaçao has a warm, sunny climate all year round, with an average temperature of about 27°C (81°F).
Curaçao has one major city, the capital Willemstad, which takes up most of the central part of the island. You can travel to Curaçao by air with direct flights from North America, Europe, and South America.
The currency used in Curaçao is the Antillean Guilder (ANG), also called the Florin. The Antillean Guilder's exchange rate is fixed to the US Dollar at a price of 1 USD = 1.80 ANG. When exchanging money at a bank the exchange rate is 1.78 or 1.82 ANG, depending on if you're buying or selling.
While Dutch is the official language, English, Spanish, Portuguese, and Papiamentu are also widely used.
One of the reasons to invest in the island is its location. Situated between South America and Central America, it has a strategic and safe location, outside the hurricane belt, making Curaçao an excellent distribution centre for the Caribbean area, South, Central and North America and the European Union. More information about Curacao can be found at curacao.com and curinvest.com.