Trade & Service Related Securities Dealing and Quotation (TRESDAQ): A New Approach to Trade Finance


  • TRESDAQ is the first and only initiative that creates affordable access to financing for small businesses;
  • TRESDAQ is fully consistent with the government’s policy goals of developing the country’s middle class and thereby expands the economy;
  • It could be a viable alternative to investors seeking short term fixed income returns with low to medium risk.

Overarching Innovation

  • TRESDAQ is the first serious attempt to create value for small businessmen and entrepreneurs.
    • To date, neither the commercial banks, investment houses, or securities brokers have been able to create a sustainable financing mechanism for small businessmen;
    • Totally supportive of government policy. Any government should cater to the small businessmen because a wide middle class creates prosperity and stability;
  • Innovation does not come without challenges

– Best form of protection for financial investor;

    • Financial stress is always manifested first with commercial transactions;
    • Settlement delay rather than loss of principal will be the key risk that most investors will have to be exposed to
  • – Use of proprietary IT platforms to gather real-time information on commercial activities at the transaction level

– The trade document is itself the security to be sold down to the investor; these are contracts, are negotiable doucments, and have always been rediscounted on an OTC basis
– Trade is defined to be either goods or services
– Pioneered by DBP’s Marketplace for Small and Medium Enterprises (M4SMERP)

– Information on the quality of the security is direct and real time;
– Traditional fixed income securities, using new evaluation standards rely on

    • Dated information
    • Interpreted information