Solidum Partners AG has signed up one of its subsidiaries as a member of Guernsey headquartered The International Stock Exchange (TISE), providing the firm with the ability to arrange and sponsor listings of insurance-linked securities on the exchange.
The TISE was previously known as the Channel Islands Securities Exchange but changed its name recently as it looked to attract more international businesses and set up new bases outside the Channel Islands.
With ILS transaction activity already occurring in Guernsey, the Exchange has now signed up its first insurance-linked securities (ILS) investment manager as a member, as Solidum Partners wholly owned subsidiary Solidum Re (Guernsey) ICC Limited becomes a member firm.
The membership means that Solidum is now a Category 1 and Category 2 sponsor, allowing it to arrange and sponsor the listing of debt securities and investment vehicles on the TISE.
The joining represents the first time that the core of an Incorporated Cell Company (ICC) has been admitted as a member of the Exchange and it will provide Solidum with the ability to list the securitised ILS notes it issues, providing for greater transparency and enhancing the liquidity of the instruments.
Cedric Edmonds, Director of Solidum Re, commented, “I am extremely pleased that we have been approved as a member of TISE. We have had issuances listed on the Exchange in the past and so it is fantastic that now we have become a member firm in our own right and as such, we will be able to sponsor the listing of debt securities and investment vehicles on TISE.”
As far back as 2011 Solidum listed one of its private catastrophe bond issues on the Exchange, with the Solidum Re Eiger IC Limited vehicle admitted to TISE’s Official List back in 2011, which the Exchange notes as the first private cat bond transaction to be listed on an exchange.
Since that early ILS listing, TISE has also had the first ever securitisation of takaful (Sharia compliant) insurance policies listed on the Exchange and is also home to two ILS funds from specialist ILS manager Securis Investment Partners.
Fiona Le Poidevin, CEO of The International Stock Exchange Group, explained, “I am delighted to welcome Solidum Re as a member of TISE. We have already become home to some world-first listed ILS transactions but this is the first time that a specialist in the space has been approved as a member of TISE. This is a ground-breaking development which demonstrates our innovative approach and reinforces the fact that we not only have experience in listed ILS and ILS funds but that we are open to more of this type of business.”
Solidum is also noted for its innovative Dom Re IC Limited transaction, which represents a cell of Solidum Re, that was believed to be the first securitised notes digitised on a private blockchain. Since then the firm has also issued and settled a second ILS transaction using the blockchain.
Solidum called its blockchain settlement technology “ILSBlockchain” and it gave the manager the ability to replace the role of a traditional settlement system for issuance of ILS notes.
Since then, Solidum has also traded some of the Dom Re IC blockchain settled notes on a secondary basis (once involving asset manager Lombard Odier) and now with its membership of TISE the ILS manager will be able to issue and settle notes using its blockchain technology, then list the resulting ILS notes on the TISE to enhance their transparency and tradability.