Chi-x opens up access to tech darling Apple

Alternative stock exchange Chi-x is giving Aussie investors access to international tech stock Apple in partnership with Deutsche Bank.

Deutsche Bank has issued a security called transferable custody receipts (TraCRs) that will give Aussie investors exposure to the financial performance of Apple's shares with local trading.

These securities will trade on Chi-x.

Chi-X chief executive Vic Jokovic said TraCRs bring the global investment world to Australia's backyard.

"TraCRs provide, for the first time, Australian investors with access to leading global companies with the protection of trading on a local market. As a TraCR holder you have a beneficial interest in the underlying US share and subject to the terms of issue, the right to convert your TraCR holding into that share.

Chi-x and Deutsche have plans to launch TraCRs for other US stocks.

Deutsche Bank Australia and New Zealand head of depositary receipts Chris Bagley said: "TraCRs are classified as a domestic equity market product and are subject to Australian regulation. Settlement will occur through CHESS and all distributions will be paid in Australian Dollars. We believe TraCRs present a convenient and cost-effective way for local investors looking to gain access to US listed shares."

Deutsche developed transferable custody receipts in 1995, offering them in Argentina, Mexico and most recently Chile.

Deutsche Bank sets up the security's structure and acts as depositary bank, pays the dividends to the investors and assumes a number of other responsibilities in relation to regulators, the stock exchange and investors.

The owner of a TraCR has the right to obtain the foreign security the receipt represents which could be a stock, bond or ETF.

Read more: AppleAussieDeutsche Bank AustraliaArgentinaChris BagleyVic Jokovic
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