Tomás Carruthers

Under a partnership with Euronext, one of the world’s largest stock exchange operators, the proposed next exchange will be powered by the trading platform Optiq.

Tomás Carruthers, the broker and entrepreneur leading the project, said the Scottish stock exchange could be launched as soon as the first half of 2019, subject to FCA approval, after two years of work.

Bourse Scot has said it is already in talks with a number of potential issuers who intend to use it to raise investment.

It believes the exchange will be complementary to the already, or soon-to-be, established government-backed initiatives such as the Scottish Investment Bank, Scottish Enterprise funding, and the Scottish National Investment Bank.

The team is in discussion with Scottish Enterprise to secure Regional Selective Assistance funding with a view to creating around 60 highly-skilled jobs.

Mr Carruthers said: “Stock exchanges play a vital role in bringing together investors and businesses seeking investment. In the 1960s there were five such exchanges across Scotland, enabling Scottish investors to directly fund business opportunities which, in turn, supported economic growth.

“Fifty years on and the economic landscape in Scotland is very different. Growth sectors such as renewable energy and biotechnology have once again established Scotland’s standing as a centre of global excellence. A Scottish stock exchange will ensure companies can continue to find the financing they need to reach their full potential.

“It’s clear there are strong regional economies across the UK, and Scotland is thriving with the combination of global industrial leaders, world-class universities, and an established professional community.”

The proposed Scottish stock exchange will operate on a traditional market model, as used by established stock exchanges across the world to connect investors with businesses.

Members of the public will be able to buy shares listed on the Scottish stock exchange through any major stockbroker, with share ownership being settled in CREST, the central securities depository common with other UK exchanges.

Nick Thornton, head of Euronext Technology Solutions, added: “We are delighted to have been selected for this important project. The Optiq service enables our clients to focus on business innovation and growth while relying on our established pan-European infrastructure.”

The team has been in advanced discussions with key stakeholders for nearly two years. Mr Carruthers is being supported by a number of experienced advisors including Mike McCudden, Douglas Boyce, Kevin Milne and Heather Buchanan.

Executive search specialist Carlyle has been commissioned to bring forward recommendations for the company’s executive team, which is expected to be in place by January.