Roundtable forum on SPAC listing rules: Invitation For Submissions


FNSX continues to pursue meaningful and commercially responsive legislation with the development of a specialized SPAC policy. Special Purpose Acquisition Companies (SPACs) have long existed but are becoming increasingly discussed and utilized as part of the dynamic financial landscape. To help facilitate and cater to those seeking to list SPACs, and to ensure their proper governance and safe investment principles, FNSX is aiming to be the first exchange to specifically legislate and create an onboarding process for SPACs.

The SPAC listing framework is being developed in conjunction with leading institutions engaged with the SPAC space. Experts from Cantor Fitzgerald, Bank of America, Credit Suisse and boutique private equity firms have contributed to the FNSX discussion paper on SPAC facilitation. The aim is to balance efficiency in listing and transparency for investors. A full disclosure model with varied onboarding requirements will help ensure that FNSX becomes the exchange of choice for international and local companies seeking to use a SPAC to achieve their financial goals.

While the rules remain subject to finalization, it is expected that the SPAC policies will provide for companies to list in a manner where the total market capitalization can be calculated by reference to a committed trust fund or escrowed account. It will also allow for the easy delisting and decommissioning of the listed entity if the acquisition is not successful.

With roughly 200 SPACs went public in 2020, with a total value of $64 billion, SPACs have become a dominant model. Our expectation is that 2021 and beyond will see an increase in their activity, and it is an important part of our roadmap to ensure that administrative and structural challenges do not limit this exciting new development. We welcome any further feedback on the SPAC policy and look forward to releasing the policy in the near future.

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