Scottish Stock Exchange on track to launch this year

Around 200 members of the Scottish business community came together at Edinburgh’s Royal Botanic Gardens to hear of the progress being made by Project Heather, the project of re-establishing and renewing a Scottish Stock Exchange.

Led by CEO and Project Heather founder Tomas Carruthers, the audience heard how Project Heather has agreed terms with the major technological partners to deliver a Scottish Stock Exchange, with the aim of platform testing in the next few months.

Mr Carruthers said: “A Scottish Stock Exchange will be far more than a trading platform. It will be a stock exchange for the 21st century which serves society and can be trusted to serve all stakeholders.

“We will require all those who use the exchange to demonstrate how they intend to use the capital raised for a purposeful and positive impact on society and or the environment.

“It will be a market which social entrepreneurs, charities and local authorities can all use, and have visibility with investors who are aligned with their missions. We aim to become the public market of choice for entrepreneurs who want to make an impact and the investors who want to back them.”

Carruthers said that the intention and principles behind the new stock exchange had received both cross-party and business support and was already in active discussions with a number of companies wishing to issue shares on the new exchange to raise capital for growth.

He said: “We have had a number of very credible approaches from Scottish companies who are very keen to work with us. The rest of the year will be spent, as well as finalising our launch, speaking to potential issuing companies. We are seeking issues which will use the platform for long-term sustainable growth as a result of being on the public market.”

The Project Heather team is in final negotiations with Euro CCP (European Central Counterparty N.V.) – the central counter party – a crucial partner in the exchange which facilitates and clears market transactions. Headquartered in Amsterdam, EuroCCP is an established CCP which clears equities in 18 European markets and United States. Jan Treuren, Head of Product Management at EuroCCP presented at the event.

Project Heather has also agreed commercial terms with Brussels-based Euroclear, which specialises in the settlement of securities transactions.

Carruthers also outlined how the principles of a Scottish Stock Exchange were aligned to and complementary to the Scottish Government’s sustainable development framework and those of the Scottish National Investment Bank to support long-term, sustainable economic development.

The opening address from Lord Provost of Edinburgh Frank Ross welcomed a Scottish Stock Exchange, aligning it to City of Edinburgh Council’s recent five-year economic strategy and the importance of ethical and impact investment, saying a Scottish Stock Exchange could be “an exemplar for capital markets around the world”, given the emphasis on ethical and social fundamentals.

Mr Carruthers was then joined in a panel discussion with Meg Brown, managing director of Impax Asset Management, Lee Qian, investment manager who is leading the positive change strategy at Baillie Gifford, and Jan Treuren, head of product and change management at Euro CCP. 

The team is engaged in discussions with the Financial Conduct Authority ahead of an impending application and several appointments to the senior management team have been made, including a head of member services, head of communications, head of human resources, finance director, head of origination and marketing director.