Exchange Operations

 

 


The RE approach, for all its benefits, needs an exchange, preferably one authorized and supervised by a respected government regulating body, to provide:

  • Liquidity
  • Standardization
  • Efficiency
  • Regulation
  • Scalability
  • Investor protection

The Royalty Entitlement, an exchange trading our patented, Fair and Shariah Fair Revenue Participating Contract units, will do exactly that.

Who are the stakeholders in a financial exchange?

  • Capital consumers
  • Capital providers
  • Exchange members / underwriters
  • Exchange domicile

Stakeholder
Need and Objective

Capital Consumer

Availability of capital. Low cost of capital. Lenient listing requirements. Low reporting requirements. Low intervention.
Capital Providers High & predictable returns. Income. Regulation. Liquidity. Efficiency. Breadth of listings. Convenience. Sharia compliance.
Members / Underwriter Underwriting fees. Trading commissions Membership Underwriter appreciation. Appealing new products. Global scope. Transaction volume.
Domicile Breadth / depth of financial industry, Nurture local enterprise. Maintain / enhance reputation. Taxes.
 
 

Process Flow: From Initial Issue to Secondary Market

Please click HERE to view our process flow.

Listing price and volatility of REX Contractual Units:

  • Each offering will initially be at a contractual unit price of US$10,000
  • The amount of capital sought will determine the number of contractual units offered
  • The unit price will fluctuate with the market’s expectation of company’s revenue and contract period remaining
  • The advantage of the REX is investor liquidity and that liquidity will permit companies to negotiate better deals as investors will, as a result, not have to await predetermined dates to take capital protecting actions.
  • The REX offers investors more predictable income than stocks, the potential for unit price appreciation, and acceptability to Shariah compliant investors and companies

The REX will fill under-served needs of all stakeholders

Stakeholder
Need and Objective
REX Advantage

Capital Consumer

Availability of capital.
Low cost of capital.
Lenient listing requirements.
Low reporting requirements.
Low intervention.

 Shariah & income-focused investor money
No debt to repay, ability to buy back
No listing requirements
Reporting requirement limited to revenue audit
Royalty holders don’t vote or control
Capital Providers High & predictable returns.
Income.
Regulation.
Liquidity.
Efficiency.
Breadth of listings.
Convenience.
Sharia compliance.		 Predictable and auditable nature of revenues
& governance
Global access to buyers / sellers 24X7, screen based modern-day exchange
Access to unique opportunities Shariah compliance
Members / Underwriter Underwriting fees.
Trading commissions
Membership
Underwriter appreciation
Appealing new products
Global scope
Transaction volume.		 3% underwriting fees
Membership value very likely to appreciate Innovative, powerful new products
Global scope
Domicile Breadth / depth of financial industry,
Nurture local enterprise
Maintain / enhance reputation
Taxes		 Unique, new product
New capital raising alternative
Establish Singapore as Islamic banking hub