GMEX Group (GMEX), a UK-based global provider of multi-asset exchange trading, post trade business solutions and technology, has announced that it will launch a Mauritius based International Derivatives and Commodities Exchange (MINDEX) ecosystem. The MINDEX ecosystem will create multi-commodity spot and derivatives platforms, clearing house, secure vault storage, gold refinery and digitalised assets, with operations going live in Q4 2018, and is expected to create up to 512 jobs over 2 years. The initiative represents a direct investment of USD $35 million into the Mauritian economy. It is supported by the Economic Development Board of Mauritius and the UK Government.
The Financial Services Commission of Mauritius (FSC) has approved the application in principle to allow the set up of the derivatives exchange and advanced real-time central counterparty (CCP) clearing house and will provide ongoing regulatory oversight.
The setting up of a MINDEX ecosystem was initially an initiative first announced in the National Budget 2016/2017, and the GMEX-led private sector consortium has been targeted and facilitated by the Economic Development Board of Mauritius (EDB) to set up the Exchange in Mauritius.
MINDEX Holdings Ltd was formed in 2017 with the consortium of sponsoring companies including GMEX and Five Rings Commodities SA, a leading independent gold trading house based in Luxembourg. The initiative is also supported by the Department for International Trade and the Foreign and Commonwealth Office of the UK Government, with GMEX Group being headquartered in London, UK.
MINDEX will initially focus on gold and will incorporate a full ecosystem, from the mine to the consumer, incorporating ethical physical mining supply, set up of a world class refinery, trusted secure vault storage, recycling, an Over-the-Counter (OTC) electronic spot trading venue, an electronic derivatives exchange and an advanced real-time central counterparty (CCP) clearing house to be set up to the highest CPSS-IOSCO standards. The derivatives exchange and CCP will be subject to ongoing regulatory oversight by the Financial Services Commission of Mauritius (FSC).
MINDEX operations are expected to commence in Q4 2018. The objective is for the exchange to become a hub for African trade to include:
- Digitalised gold buying and selling on exchange based firmly on physical assets underpinned by Blockchain technology;
- Gold pre-financing, digitalised borrowing and lending against electronic receipts;
- Highly secure digital and physical gold settlement and custody;
- Derivative contracts on gold and subsequently other precious metals, FX and agricultural products.
- The economic benefits of MINDEX will be a direct injection of USD $35M into the Mauritian Economy with 512 new jobs estimated to be created over 2 years of which 104 will be direct jobs and 408 will be secondary jobs providing ancillary services. The total cumulative trade volume over the next 5 years is estimated to be x2.27 the gross GDP of Mauritius. After 5 years, the volume of transactions traded on the MINDEX Exchange is expected to nearly match the GDP of Mauritius as USD $30.3Bn is projected to be traded over a five year period. It could result in $18.3M of additional tax revenue for Mauritius over 5 years.
Hirander Misra, CEO of GMEX Group and Chairman of MINDEX commented:
“The MINDEX ecosystem will become a trusted hub for ethically sourced gold from Africa, which will lead to job creation, GDP growth and International Financial Centre (IFC) development not only in Mauritius but also result in increased local investment, cheaper access to finance, more output, additional tax revenues and an increase in export income for African gold origination countries.
He added, “This will result in an increase in national GDP and act as the catalyst to develop interlinked financial centres across Sub-Saharan Africa resulting in increased inter-Africa trade and internationalisation.”
Charles Cartier, Chairman of the Economic Development Board commented:
“The setting up of the MINDEX ecosystem in Mauritius will deepen the depth and breadth of our offering in the capital markets segment.”
“It will not only fill in the current vacuum that exists in the derivatives area, but it will also provide international investors with sophisticated instruments for hedging risks, such as currency and foreign exchange, when investing in the African Continent.”
“MINDEX is in line with the Government’s vision of encouraging higher value-added services in the Mauritius International Financial Centre (IFC), notably for mitigating risks and enhancing efficiency for investments in Africa and other emerging markets.”
The British High Commissioner to Mauritius, H.E Keith Allan said:
“Mauritius and the UK have a long history of trade and investment. The Department for International Trade and the Foreign and Commonwealth Office are delighted to support the launch of the MINDEX project from GMEX Group. The MINDEX project will create a significant amount of jobs both in Mauritius and the UK. In addition to the initial investment, GMEX plans for the further expansion and development of the information technology and financial intermediation sectors will enhance the Mauritian economy over the next 10-20 years and provide a real boost to Mauritius’ growing reputation as a regional financial centre.”
“The UK services sector is hugely successful and is in high demand in Mauritius and around the world. This latest initiative will strengthen our existing bilateral trade relationship and ensure that UK-Mauritius trade and investment continues to be successful, innovative, and dynamic.”
Source: Platform Africa