Products Introduction

A diversified investment solution based on compliance and centered on value.

JSE Shares (South African Equities)

  • Blue-chip shares
  • mid-cap opportunities
  • Mining, banking, retail, telecom, technology
  • Sector reports written in simple South African English

Globally Linked ETF Access (OTC ETF Link Channel)

Examples :

  • S&P 500 (US500-linked ETF)
  • NASDAQ 100 ETF
  • Gold-linked ETF
  • Developed Markets / Emerging Markets baskets

Market Maker Projects

Liquidity support on selected instruments:

  • Improved spreads
  • stronger trading consistency
  • Better price stability

ETF Stable Return

What Is an Off-Exchange ETF-Linked Fund?

An ETF is essentially a basket of stocks that represents a sector, an index, or a selected group of assets.
The core concept of an “off-exchange ETF-linked fund” is:

Instead of buying the ETF directly, investors subscribe to a product issued by a broker or asset management institution that is linked to the ETF’s returns.

Key features of these products include:

  • Purchased off-exchange: Investors do not buy the ETF in the stock market. Instead, institutions issue structured products that investors subscribe to with a fixed amount.

  • Returns linked to the ETF: The product’s performance is derived from the ETF’s net asset value (NAV) and the institution’s hedging system.

  • Risk managed by the institution: Institutions use hedging, options, arbitrage, and ETF creation/redemption strategies to control risk, allowing investors to experience lower volatility.

  • Often includes a fixed income range: To enhance appeal, institutions typically provide a “fixed annualized return range,” offering investors stable returns.

An off-exchange ETF-linked fund = a low-risk investment that allows investors to benefit from ETF performance without trading or monitoring the market.

Why Many Stock Investors Are Switching to Off-Exchange ETF-Linked Funds

Stock investors often face several common pain points:

  • High volatility that easily leads to losses
  • Difficulties timing the market
  • Emotional trading and frequent mistakes
  • Lack of a clear profit model during market downturns
  • No systematic risk control or position management

Off-exchange ETF-linked funds are designed specifically to solve these problems.

Four Core Advantages of Off-Exchange ETF-Linked Funds

1. High Stability

ETFs represent a diversified basket of quality stocks instead of a single company, reducing concentration risk.
The off-exchange structure further smooths returns because institutions manage the volatility.

2. No Need to Monitor the Market — the Institution Manages Everything

As the underwriter, Luminaris Securities & Capital Ltd performs:

  • Arbitrage and hedging
  • ETF creation and redemption
  • Risk monitoring
  • Position adjustment

Investors simply subscribe — no trading knowledge or market observation is needed.

3. Flexible Cycles with Short-Term Redemption

Compared with traditional funds (slow redemption) and stocks (high short-term volatility), off-exchange ETF-linked funds typically offer:

  • Short investment cycles
  • Clear redemption schedules
  • Institutional liquidity support, unaffected by market liquidity

This is one of the biggest reasons investors like these products:
They do not carry the high volatility of stocks and do not require long capital lock-ups.

4. Fixed Income Range

This feature is not available in regular ETFs or stocks.
Institutions achieve “fixed-range returns with low risk” through sophisticated hedging and return-locking strategies.

Why Can Off-Exchange ETF-Linked Funds Offer “Short-Term Flexible Redemption + Stable Fixed Returns”?

Luminaris Securities & Capital Ltd locks in the ETF’s risk-return range in advance

The institution secures returns through:

  • ETF creation/redemption arbitrage
  • Delta hedging using options
  • Cross-market spread arbitrage
  • Tiered position hedging

The institution’s objective is not to “bet on ETF direction,”
but to lock in returns through arbitrage + hedging + risk control.

Therefore, investors receive stable performance.

The institution absorbs volatility — investors only bear a fixed NAV change

In normal stock or ETF investing, investors take on all the price fluctuations.
But in ETF-linked funds:

  • The institution absorbs the volatility
  • Investors only receive a fixed income range

 

This is similar to:

Investors entrust funds to professionals, and the institution uses complex hedging to secure stable returns for them.

The institution provides liquidity, enabling short-term redemption

Luminaris Securities & Capital Ltd is a major participant in ETF creation/redemption. Because it can transact directly with the ETF’s fund manager in the primary market:

  • No need to find buyers or sellers in the exchange
  • No need to rely on market liquidity
  • The institution can provide funds immediately

Thus, investors can redeem in the short term. That is why:

Selling a stock may require waiting for buyers,
but off-exchange ETF-linked funds can be redeemed and credited quickly.

Investor returns come from two components

  1. ETF NAV appreciation (smoothed through institutional hedging)

  2. Luminaris’s underwriting profit distribution (returned to investors as fixed income)

As a result, investors enjoy:

  • Clear fixed return rates
  • Defined investment cycles
  • Stable repayment schedules

This is the core value of “fixed-income ETF-linked products.”

MARKET-MAKING STOCKS

What Are “Market-Maker Stocks”?

Market-maker stocks refer to listed company shares that must have professional market makers providing two-way quotes (bid and ask prices). A market maker acts as:

A liquidity provider + price stabilizer + market-cap supporter.

Market makers must:

  1. Continuously post both bid and ask prices
  2. Ensure the stock always has buyers and sellers
  3. Step in to buy or sell when trading activity is low
  4. Assist the listed company in maintaining a reasonable market cap and active trading

Therefore, every stock that participates in public trading relies on market makers to support liquidity and maintain price stability behind the scenes.

Why Retail Investors Rarely Participate in “Market-Maker Stock” Transactions?

Reason 1:

Market makers operate in the “primary market + market-making inventory,” not the secondary market

Retail investors trade in the secondary market, but market makers source their inventory from:

  1. Primary market underwriting allocations (IPO issuance price)

  2. Directed allotments during company share placements

  3. Special market-making inventory (Market Making Inventory)

These inventory prices are far lower than what retail investors see in the market.
Since retail investors cannot access these channels, they naturally cannot participate at the same cost or under the same mechanisms.

Reason 2:

Market makers have special trading permissions that retail investors do not have

Market maker privileges include:

  1. Posting both buy and sell quotes
  2. Executing trades even without a counterparty
  3. Direct allocation from listed companies based on liquidity needs
  4. Participation in discounted share placements
  5. Access to block trades and liquidity-support transactions
  6. Ability to secure low-cost shares in advance via the primary market

 

Retail accounts can only:

  • Market buy
  • Limit buy
  • Market sell
  • Limit sell

Retail investors cannot participate in:

  • Discounted share issuance
  • Primary market allotment
  • Market-making hedging strategies
  • Liquidity-matching trades
  • Discounted block-trade opportunities

Thus, retail investors cannot access low-cost chips or market-maker trading mechanisms.

Reason 3:

Retail Investors Do Not Have Underwriting Qualifications

The rules are clear:
Only licensed brokers, market-making institutions, and underwriting teams can access market-making inventory and allotments.

Retail investors are not qualified.

Why Does the Market Need Market Makers?

Every listed company needs to:

  1. Prevent price collapse

  2. Maintain trading activity

  3. Increase market capitalization

  4. Sustain investor attention

  5. Avoid price abnormalities that cause negative sentiment

These tasks must be handled by market makers.

Therefore:

  • The core purpose of a market maker is to provide liquidity and market-cap maintenance for listed companies.
  • Without market makers, stocks would easily suffer from distorted pricing, low trading volume, and difficulty buying or selling.

This is why every listed stock has market makers stabilizing price and liquidity behind the scenes.

Why Do Market Makers Acquire Stock Through “Discounted” Transactions?

Market makers need low-cost, large-volume inventory to:

  1. Absorb sell-offs

  2. Maintain a price range

  3. Provide liquidity

  4. Support market capitalization

  5. Hold hedging inventory

  6. Cooperate with the company’s market-cap management programs

To expand market-making inventory, listed companies commonly use:

  • Discounted share placements
  • Discounted allotments
  • Discounted block trades
  • Discounted liquidity-injection windows

Market makers obtain shares at a low cost and then provide liquidity and price stability in the market — fulfilling their market-making role.

How Retail Investors Can Participate in “Market-Maker Stocks” Through Institutional Access

Retail investors who participate through the institutional accounts (e.g., Luminaris Securities & Capital Ltd institutional account permissions) gain access to:

  • Institutional discounted allotment quotas
  • Eligibility for discounted block-trade bidding
  • Allocations of low-cost market-maker inventory

Normally, retail investors buy stocks at secondary-market prices, but:

Through the institution, they can participate at primary-market, market-maker-level discounted prices.

This is why once retail investors obtain a market-maker stock quota, their profit potential is significantly greater than normal stock trading.

Because:

  1. Costs are lower
  2. Premium potential is higher
  3. Market-cap management supports the stock
  4. Market makers are obligated to maintain price levels
  5. Institutions provide liquidity

This represents an institution-level opportunity that retail investors normally cannot access.

Why Do Market-Maker Stocks Have High Premiums? Why Can’t Retail Investors Buy Them Normally?

Market-maker stocks are essentially the low-cost inventory institutions use for liquidity provision and market-cap support.
These shares come from:

  • Primary-market underwriting
  • Discounted placements
  • Discounted block-trade windows

Thus their cost is much lower than the prices retail investors pay in the secondary market.

Retail investors can only trade in the secondary market and have no access to discounted allotments or market-making inventory — therefore they never see these opportunities.

But through our institutional account, investors can access:

  • Discounted institutional bidding
  • Market-maker-level cost prices

Once subscribed, you obtain shares at market-maker cost, which naturally provides high premiums and profit potential.

This is why wealthy investors, institutions, and professional traders prefer market-maker stocks:

  • Low price
  • Low risk
  • High premium
  • Backed by market-cap management
  • Success rate far higher than regular stocks

Exclusive Research & Insights

Access to proprietary US market research reports, economic calendars, and analyst ratings.

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Legal & Compliance Documents

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