Caricom Private Sector Group Pushing Regional Stock Exchange

  • The Caribbean Private Sector Organisation (CPS) has announced that PricewaterhouseCoopers (PwC) has been awarded the consultancy for the study to articulate feasible models to effect a regional stock exchange among participating states of the Caricom Single Market and Economy (CSME).
  • The CPSO-PSC comprises representatives from regional stock exchanges, dealer-brokers, listed companies, Central Bank governors, the Caricom Secretariat, regulators, and representatives from CPSO’s executive committee and secretariat. The CPSO-PSC would maintain overall management and coordination responsibility of the consultancy.
  • The study is expected to focus on exploring models for a regional intermediatory mechanism for securities trading, incorporating key market institutions such as securities exchanges, securities regulators, broker-dealers, and issuers, that will achieve or approximate the essential features of an integrated capital market across CARICOM member states.
  • A key objective would be to identify a feasible framework that is both operationally efficient and minimally burdensome (financially or administratively) to participating institutions, while ensuring adequate regulatory oversight to safeguard investors.
  • The study will be undertaken in two phases. Phase 1: Establishing the feasibility of a regional stock exchange, and Phase 2: Identifying the appropriate model and outline of the fit-for-purpose architecture.
  • This study is expected to lay the groundwork for a more integrated and accessible capital market ecosystem within the region, which presents opportunities for greater investment options and opportunities for capital raising for people of Caricom, businesses, and regional economies
  • The benefits of a securities exchange integration include optimal capital mobilisation to support development, diversified risk, more efficient and competitive financial markets, lower financing costs, higher returns, and the overall increase in cross-border flow of capital.

(Source: Trinidad & Tobago Guardian)