NZ-founded private markets platform, Syndex, has bolstered its presence across the Tasman after inking an agreement with a subsidiary of Australian financial technology firm, FinClear.
Under a memorandum of understanding signed last week, Syndex and the FinClear-owned private capital administration operator, FCX, have agreed to create a formal partnership to provide shared services in both markets.
“The partnership is a natural progression in advancing capital raising, administrative, and liquidity capabilities for private companies and their investors in the region,” a joint release says. “FCX and Syndex will share product and technology developments as well as effectively extending market presence across both territories to better support clients in either country.”
FCX describes itself as the “world’s first centralised platform for private company capital” built on distributed ledger technology (or blockchain) where securities are tokenised.
Steve McClean, FCX director, said the Syndex tie-up reflected a surge in demand for private assets along with trading technology that “mirrors listed stock exchanges”.
“This partnership is the product of a shared vision of the future of private markets and a natural expansion of our footprint in New Zealand, where FinClear clients already leverage our parent infrastructure,” McClean said.
FinClear, part-owned by Magellan, launched FCX in 2022, adding to its core listed and unlisted markets infrastructure and cash investment platform, Transact1.
According to the group’s website, the FinClear tech “provides a cost-effective alternative to custody or wrap wealth management platforms, enabling stockbrokers, wealth managers, financial planners and fintech providers to access capital markets cost effectively for their retail clients”.
The business is also vying to break the ASX clearing monopoly currently held by the dilapidated CHESS system. In 2022 the ASX abandoned a six-year, blockchain-based project to upgrade CHESS, writing off $250 million in the process.
Established in 2014, Syndex runs a decentralised trading platform in NZ offering access to private capital-raisings and largely wholesale funds with an emphasis on agricultural, co-operative and commercial real estate sectors.
Ross Verry, Syndex chief, said in the release that collaboration with FCX would enable the two firms to “build the future of private markets in Australasia”.
“Access to capital is critical to their ongoing growth, so technology that provides investors security and liquidity brings great benefit to companies, unlisted fund managers, investors and the economy,” Verry said.