Will The Jamaica Stock Exchange Step-up And Lead The Charge For A Single Regional Stock Exchange by 2020? – Part 1/3
For a number of years now there has been talk and talk of plans to develop and implement a Single Regional Stock Exchange. How this will be accomplished among the three leading exchanges of Jamaica, Trinidad and Barbados is still anybody’s guess.
The global stock market remains one of the giants of the financial services industry, with capitalization reaching $69 trillion dollars (2015) from $34 trillion in 2008, according to Santee Sandal, a global strategist with Deutsche Bank.
Globally, there are few markets, maybe 16, that form the main anchors of this massive capital pool and the mighty NYSE, representing $18.5 trillion in market capitalization, or about 27% of the total market, is one such. The NASDAQ, with a cap of about 7 trillion, is another. Together with the London Exchange (LSE), Deutsche Borse, TMX Group (Toronto), and Japan Exchange Group, the 2 US titans comprise 87% of the world’s total value.
In the Caribbean, there are more than a dozen national Stock Exchanges but only one formalised regional securities market known as the Eastern Caribbean Securities Exchange (ECSE). Among the largest are the Jamaica Stock Exchange (JSE), the Trinidad & Tobago Stock Exchange (TTSE) and the Barbados Stock Exchange (BSE). The JSE, which is the oldest Exchange in the region, was incorporated as a private limited company in August 1968. The TTSE was formally opened in 1981 under the auspices of the Ministry of Finance and the BSE, formerly known as the Securities Exchange of Barbados (SEB) was established in 1987. These Exchanges offer the market a range of investment opportunities comprising equities, mutual funds and government bonds.
The Case for a Caribbean Exchange Network (CXN)
Marlene Street Forrest, general manager of the Jamaica Stock Exchange, (the world’s biggest stock market mover for 2015), at the Regional Conference on Investments & the Capital Markets held in Kingston on January 24, 2017 again made the call for a regional exchange. “From a global perspective our capital markets are small and our regional exchanges are considered tiny, hence within our future plans we must look to consolidate our efforts regionally and embrace global partnerships” she said.
Deirdre Witter an Investment Analyst at the Jamaica based Stocks & Securities Ltd, offered the following perspective in an article published in the Jamaica Observer newspaper back in 2010.
“…………These exchanges have also been spearheading efforts for a new Caribbean Exchange Network (CXN) that will initially harmonise the three stock markets via a common trading platform. A single stock exchange for the region would enhance the promotion of the movement of capital across the region, increase investment opportunities, encouraging optimum financing for regional firms and increase the attractiveness of the CARICOM as an area for investment. Therefore as stock exchanges across the Caribbean expand and regionally integrate, investors will be sufficiently equipped to enjoy a more active and diverse stock market that resembles those of developed countries.”
In part 2 The Unique Peculiarities of Each Exchange Market
The quotes above expressed by Marlene J. Street-Forrest General Manager Jamaica Stock Exchange (JSE) are her personal views on the matter and do not necessarily reflect the views of the JSE board.