OuroX Signs LOI with the Suriname Stock Exchange and Takes First Steps to Develop an Innovative Securities Exchange for Latin America and the Caribbean.
Paramaribo, May 2, 2019 — OuroX and the Suriname Stock Exchange signed a letter of intent last week with the goal of establishing a modern digital National Securities Exchange in Suriname, as required by the Capital Market Act of 2014. This first step paves the way for OuroX to develop and operate the new digital National Securities Exchange. OuroX is an American FinTech start-up, founded by South American entrepreneurs.
The new National Securities Exchange will enable SMEs and large corporations to get access to a wide array of capital market financing options, which have previously been out of reach. Stimulating long-term economic growth not only for Suriname, but for the entire Latin American and Caribbean region as well. OuroX uses blockchain to digitize assets, which increases transparency, efficiency and better supervision in capital markets. All which is necessary to increase the flow of foreign investment into the region.
Companies in a large part of the region are still mainly dependent on lending to facilitate growth. With the exchange, OuroX aims to provide capital market financing options and instruments, not only for small, medium and large companies, but also for banks, investment funds, pension funds and government. The first steps have been taken to obtain the necessary licenses and OuroX is closely working with regulators to create a regulatory framework necessary to facilitate the new technology.
The National Securities Exchange of Suriname is built using state-of-the-art exchange software from OuroX’s American FinTech parent company. The software is developed by AlphaPoint, a market leader in innovative exchange software. Working with Alphapoint was a strategic decision, as it allows OuroX, and thus the digital Suriname Securities Exchange to easily connect to international capital markets. To be able to do so, the exchange will be compliant with the latest standards of international financial regulations.
The goal of OuroX is to improve financial infrastructure in Suriname and the rest of the South American and Caribbean region through the use of modern technology. The FinTech startups’ plan is to start by digitizing the National Securities Exchange, with the primary purpose of developing the Surinamese capital market up to international standards. In addition to this, OuroX’s payment app will complement the exchange by offering fast, safe and low-cost payments and cross-border remittances.
OuroX looks forward to closely working with Surinamese regulators, companies and financial institutions to create the most value for the economy by launching two markets, one for startups and SMEs and one for large corporations. Developing the ecosystem from startup to IPO.
“We will start by digitizing the securities of the twelve companies that are currently listed on the Suriname Stock Exchange. After which we will proceed with the on-boarding of new companies on the exchange. The opportunity is of course much larger than just securities. We will grow steadily by creating products for real estate, commodities trading (including oil and gold), and in the near future also FOREX”, explains Serge Tjin Wong Joe, President of Business Development.
OuroX believes that with the obtained support from the current Suriname Stock Exchange, which has been pioneering the industry for over 25 years, it will provide a significant boost to the Surinamese economy.
‘’We are grateful for the solid foundation the Suriname Stock Exchange has laid in terms of structure and compliance, giving Suriname a head start in comparison to other securities exchanges in the rest of the region that have yet to become digital. It is important to understand that the development and implementation of the new digital exchange, with full cooperation and support of regulators, will be possible in just a few months. The exchange will be available to financial institutions, companies and governments in Q3 of this year.“ says Maya Parbhoe, CEO of OuroX.
Education about the opportunities and possibilities of a digital securities exchange for all participants is an important part of the development of OuroX. While the financial instruments that come with a digital exchange are widely used in Europe, Asia and the US, they are still new to Suriname. “The great thing about it, is that we don’t have to reinvent the wheel. Using the latest financial technology, we can bridge the gap relatively quickly.”, says Parbhoe.
More information regarding the development of the digital Surinamese Securities Exchange will follow soon.