Global Financial Group Inc. (GFG) has submitted its final application for recognition of egX Canada as an exchange to the British Columbia Securities Commission.

The company anticipates that a summary of the application will be published for public comment in the near future.

“We are preparing to launch egX, the world’s first recognized real estate securities exchange. egX will simplify the buying and selling of real estate investments and offer a new method by which individual investors, as well as institutional investors, will be able to gain access to revenue producing real estate,” said Leo Chamberland, president and CEO of GFG, in a news release.

“In essence, the investment community will be able to buy and sell stakes in real estate properties just like shares of exchange-listed companies. egX levels the playing field for all participants,” he added.

Due primarily to the barriers of entry, such as the need for significant capital resources and transaction experience, relatively few retail investors can ever gain access to the commercial real estate market. For institutional investors, including mutual funds, which currently cannot hold title to real property, egX will offer attractive, liquid, alternative real estate investment opportunities.

Although real estate represents the largest asset class in the world, it currently only makes up about 2% of the market capitalization of existing Canadian exchanges. Globally, the securities exchanges place little or no emphasis on the real estate market.

“egX will bring all the benefits of a modern, regulated securities exchange to the real estate market. We intend to provide a fair, liquid, efficient and transparent marketplace to trade real estate products,” said Angela Huxham, President of egX.

GFG intends to launch its first marketplace in Canada under egX Canada Inc. Following the Canadian launch, GFG intends to develop its model internationally, creating a global exchange for real estate securities.