Durrant Pate/Contributor 

As the push for the creation of a regional stock exchange across CARICOM member states advances, Pricewaterhouse Coopers (PwC) has been selected to lead a consultancy aimed at bringing this to reality.

The Jamaica Stock Exchange (JSE), the largest stock exchange regulator in the English-speaking Caribbean, where several regional companies are listed and traded, has long been in favour of a regional stock exchange. JSE managing director Dr Marlene Street Forrest on Monday (August 4) advanced arguments for its creation. 

Meanwhile, in a nod to the prospect, the CARICOM Private Sector Organisation (CPSO) says the move for a Caribbean stock exchange could significantly reshape the region’s capital markets and deepen economic integration. 

This study is expected to lay the groundwork for a more integrated and accessible capital market ecosystem within the region that presents opportunities for greater investment options and opportunities for capital raising for the people of the Caribbean Community (CARICOM), businesses and regional economies.

Transparent selection of PwC

Following a rigorous and transparent selection process, the decision to select PwC to lead the Study to Articulate Feasible Models to Effect a Regional Stock Exchange Among Participating States of the CSME was taken at a meeting of the CPSO, Regional Stock Exchange Study Project Steering Committee (CPSO-PSC) held on July 21. 

The CPSO-PSC will maintain overall management and coordination responsibility of the consultancy. It is comprised of 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. 

PwC’s comprehensive proposal, deep industry expertise, and proven track record in financial market development were key factors in their unanimous selection. 

The firm brings extensive global experience in advising on capital market reforms and regulatory frameworks. According to the CPSO, the “study” will 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 will 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.

Two-phase study

The study will be undertaken in two phases:

1. Phase I: Establishing the feasibility of a regional stock exchange

2. Phase II: Identifying the appropriate model and outline of the fit-for-purpose architecture

The PwC team will work in close collaboration with the CPSO-PSC and other stakeholder entities to ensure that the project is undertaken in a manner which best aligns with regional aspirations and international best practices. The regional stock exchange study was endorsed by CARICOM heads of government at the 48th meeting of the conference, held in Barbados earlier in February.

The CPSO says it is “delighted to be partnering with regional stakeholders and with PwC in undertaking this study, given the transformative potential for the community” noting, “the establishment of a robust and dynamic regional stock exchange is crucial for fostering economic growth, attracting investment, and providing new opportunities for businesses and investors across the region.” 

The CPSO is the most recently accredited associate institution of the Caribbean Community.