FAQ: Listing & Trading on the Dutch Caribbean Securities Exchange “DCSX”
At PYGG we do our best to inform you adequately. This list with ‘frequently asked questions’ is based on questions from listing and broker clients we receive along the way. The list it not meant to be exhaustive and will updated from time to time. If you have one or more questions which are not in the list (yet), or you would like to receive our Investor Portal User Manual, we invite you to contact us at [email protected] for questions about listing; at [email protected] for questions about trading; or in Chinese at [email protected].
The DCSX is in Curaçao. Curaçao is a constitutional parliamentary democracy and an autonomous country within the Kingdom of the Netherlands. The island of Curacao is in the Caribbean Sea right in front of the South American continent. The Judiciary systems of Curacao and The Netherlands are integrated. Various countries are represented in Curaçao with an office, embassy, or consulate, including The Netherlands, United States, Belgium, Germany, and the Peoples Republic of China. The economy is open, and market driven. Foreign investors can own property or other investments, and there are no restrictions with regards to repatriation of profits or invested capital. Investment in DCSX listed companies with a minimum level of local substance, qualify as eligible investment under Curacao’s residence by investment program (Curacao Investor Permit).
The DCSX is an official internationally recognized securities market, regulated by the DCSX, licensed by and operating under supervision of the Central Bank of Curacao and Sint Maarten. The Rules and Regulations of the DCSX are based on the rules and regulations of (small- and medium sized oriented) European markets. DCSX provides investment funds, corporates, and dynamic high-growth companies from a wide range of countries and sectors with access to her market and a supportive advisory community, who understand the needs of entrepreneurial businesses.
Currently there are fixed income (bonds), equity (shares) and alternative instruments such as investment funds listed and tradable on the DCSX. Although not the case at this moment, share certificates, depository receipts and structured products can be listed on the DCSX as well.
Technical Listings: The purpose of technical listings is neither to raise capital nor to offer existing securities to secondary market participants. Technical listing helps a company elevating corporate governance, financial administration, and her corporate image, usually in preparation of a direct listing or an IPO, i.e., becoming ‘tradeable’ on the DCSX trading platform in the future. If a listing is ‘technical’, there is no need for the shareholders to open a broker accounts and the shares don’t need to be transferred to and registered as book entries with the central securities depository (‘Custodian’) of the exchange. This process of transfer and registration of securities is also referred to as “Dematerialization” or “Demat”.
Tradeable listings: Tradeable listings are ‘traditional’ listings with the main purpose to raise capital (IPO) or provide liquidity to the existing shareholders (Direct Listing). Once a company is approved as a tradeable listing it will obtain the status of “Trade Approved”. When a listing is classified as “Trade Approved” it means that listing is approved to list and trade on the DCSX while the dematerialization is in progress. Existing ‘Trade Approved’ companies had a maximum of 6 months to complete the dematerialization process. New Trade Approved listings are required to complete this process faster. Once the process is completed the status will change from “Trade Approved” to “Trading”. Holders of dematerialized shares are required to open a broker account which will provide them with Online access to their investments and the possibility to buy and sell securities on the DCSX. The costs associated with our Online Broker Services can be found here.
Not yet. The DCSX started as a mere ‘Listing Facility’, partly comparable with the US ‘OTCBB’. After careful preparation including sophistication of the regulatory framework for securities brokers, tradable listings, and implementation of a fully automated trading system the DCSX is opening up for public trading. The first trades have taken place and the number of trade orders is rising. PYGG Securities Co. was the first Central Bank licensed and DCSX approved securities broker also open to investors from China, having more than 1 billion tradable securities in custody with the central securities depository of the DCSX today.
PYGG is an independent ‘boutique’ firm active as securities broker, listing advisor and fiduciary. As an associate partner of the DCSX, licensed and supervised by the Central Bank of Curacao and Sint Maarten, PYGG’s mission is to further elevate and activate the Dutch Caribbean capital market by attracting and servicing entrepreneurs, companies, their advisors, shareholders, new investors, introducing brokers and other listing advisors long-term on a win-win basis. In partnerships with foreign specialists, PYGG aims to build ‘bridges’ between Curaçao and international (niche) markets, such as The Netherlands, Malta, Cyprus, United Kingdom, Latin America and the People’s Republic of China (PRC).
PYGG Securities CO. B.V. (“PYGG”) has been licensed and approved by the Central Bank of Curacao and Sint-Maarten (“CBCS”) and the Dutch Caribbean Securities Exchange (“DCSX”) as the first DCSX approved and Central Bank licensed broker. PYGG B.V. is also a licensed trust institution supervised by the CBCS.
The Dutch Caribbean Securities Exchange (“DCSX”) and PYGG Securities CO. (“PSC”) are supervised by the Central Bank of Curacao and Sint Maarten (“CBCS”). CBCS is Curacao’s financial regulator and an associate member of the International Organization of Securities Commissions (“IOSCO”). IOSCO also includes the Asian Development Bank (ASIA), the European Commission, the European Securities and Markets Authority, the Securities and Exchange Surveillance Commission and many other reputable international financial market regulators.
PYGG’s Online Investor Portal guides you all the way through the registration, application and account activation process. You can access our Online Portal here. If you don’t have an account already you can click on “create an account”, select the English or Chinese language, enter your e-mail address, some basic information in the account registration form, and create a password. Then you logon our secure Online Investor Portal with your e-mail address and Password, where you will be guided through the account application process. You will be prompted to read and accept the Online Broker Services (“OBS”) terms and conditions. And asked to upload the account opening documentation. Our trading desk can also support you with registration and your account application. The following documentation is required.
For a Personal Account: 1. (Certified) Valid Proof of Identity (High resolution copy Passport or National ID), 2. (Certified) Proof of Address (Utility bill, Excerpt public administration, or a Bank Statement; not older than 3 months) 3. Clear photo with your ID in your hand. 4. Completed and signed copy of your Client Identification and Compliance Questionnaire (CICQ),
For a Business Account: 1. Shareholder register. 2. Articles of Incorporation. 3. Board resolution for opening of the account. 4. (Certified) Proof of Address (Utility bill, Excerpt public administration, or a Bank Statement; not older than 3 months) 6. (Certified) Valid proof of Identity all persons with 10% or more controlling and/or financial interest in the company (Copy passport or national ID). 7. List of signatories. 8. (Certified) Proof of Identity of all signatories. 9. Completed and signed copy of the Client Identification and Compliance Questionnaire (CICQ).
Activation of your account requires the booking of an existing securities position, or a cash deposit of at least USD 250.- (Less is inefficient in view of the costs of international payments, the quarterly custody fee and annual maintenance fee.)
For funding your account, you enter your deposit in the Investor Portal to notify our team. We will monitor the account for your deposit to arrive. Once your deposit arrived, the net amount (principal minus costs) will be booked and visible in your online broker account.
The only standard funding method available now is an USD wire transfer from your own bank to PYGG’s custody account in Curacao. The wiring details can be found in our Online Investor Portal. If your bank has difficulties sending money to Curacao, you can contact us for more information and support. Based on our experience it takes between 2 and 10 business days for a payment to be booked and made visible, also from the People’s Republic of China.
We are working hard to provide more funding possibilities such as the use of your credit card & crypto currencies.
If you want to withdraw money from your online broker account, you enter a withdrawal instruction in the Online Investor Portal. Your online broker account will be debited and we will make the transfer to the bank account associated with your online broker account.
Based on our experience it takes between 2 and 10 business days for your withdrawal to be booked in your bank account, also for bank accounts the People’s Republic of China.
However, some clients experienced that their bank in mainland China returned the withdrawal payment to the custody/broker account in Curacao. If we receive a withdrawal payment back from the beneficiary bank, we will credit your online broker account and contact you to resolve the issue.
The main standard fees and commissions are as follows: 1. One time account opening fee, $250. 2. Annual account maintenance and service fee $150. 3. Custody fee 0.03% per quarter with a maximum of USD 375.- 4. Transaction commission for buying and selling securities on the DCSX, 1% of the transaction value. The complete standard commissions and fees schedule can be found here.
The regular DCSX business hours can be found here. Matched orders will be confirmed to the buyer and the seller on the day of the trade (T) and settle maximum 3 days later (T + 3). Intra-broker trades settle real-time or on the same day.
Your money and your securities are perfectly safe, kept separated from PYGG’s and the DCSX’ Custodian’s own assets. In case of an unlikely event of default of PYGG and/or the Custodian of the DCSX, your assets fall outside of PYGG’s and/or the Custodian’s inventory. PYGG, the DCSX as well as the Custodian of the Exchange are Central Bank regulated and supervised entities. Your assets are protected in accordance with all the applicable Rules and Regulations.