Bigger share of European bonds a target for exchange
THE International Stock Exchange is targeting ambitious growth, its chief executive officer has said.
Cees Vermaas said that the exchange – which is headquartered in Guernsey – was aiming to grow primarily through developing its bond market but also its TISE Sustainable market segment and a new trading platform.
Listings on TISE already include high profile names such as Aston Martin, Netflix, Manchester City Football Club and McLaren, among others.
‘We have been highly successful in 2021. Markets have been flourishing and we have been benefiting from that as well. But it’s only the beginning,’ said Mr Vermaas.
Discussing bonds, he said: ‘We would like to diversify our geographical targets. So, if now 80% of our business is focused on UK company finance, and 20% internationally, we would like to see that 20% growing obviously too. At the same time, we would like to have more securitisation business and the type of structuring around corporate finance that is actually being done by non-Channel Islands law firms.
‘This year we would we would like to continue the growth we started to see last year. We have about a 3.5% share of the bond market in the bigger universe of the European time zone. Our aim is to get to over 10% in the next three to four years. That means three times the volume we have today.’
He acknowledged there were also challenges, such as the UK positioning itself to be more attractive post-Brexit. But the fact that the exchange offered a cost-effective, well-regulated and less bureaucratic option for listings – including for asset-holding companies – meant it still remained competitive. On top of that, TISE was also diversifying, he said.
He added that the exchange played a valuable role in the real economy, helping companies for example raise money to fund their plans for the future be that restructuring, expansion or acquiring. ‘It’s amazing that TISE is in the middle of that,’ he said.
n Mr Vermaas took up the post of CEO at the exchange in November 2020 with a mandate to push the exchange forward by developing and diversifying its offering, scaling up the business and upgrading its technology. He also brought with him experience at other exchanges, including as CEO of CME Europe, CEO of Euronext Amsterdam and head of European cash markets for NYSE Euronext.
