Scotia Investments Jamaica Limited has reinforced the importance of stronger market liquidity and broader investor inclusion as key pillars for the continued development of Jamaica’s capital markets, following its participation in the Jamaica Stock Exchange’s (JSE) annual three-day conference held January 20-22.

Vice President and Head of Corporate Solutions at Scotia Investments, Sarah Cumming, highlighted the interconnected relationship between liquidity and participation.

“Market liquidity and inclusion reinforce each other. Liquidity improves when more participants, products and trading exist, yet Jamaica’s capital markets remain largely characterised by concentrated institutional ownership, driven primarily by pension funds, insurers and collective investment schemes whose mandates often favour a buy-and-hold approach. While this supports long-term stability, it can suppress secondary market activity and limit broader participation, which is why we must continue to find ways to widen access and deepen trading,” Cumming said.

Against this backdrop, Scotia Investments is advocating for more accessible and investor-friendly product structures, particularly within the fixed income space. Cumming pointed to the development of smaller-denominated, income-focused securities as a practical way to encourage broader retail participation and stimulate more frequent trading.

Beyond product design, she emphasised the importance of transaction structuring and transparency in expanding investor confidence and inclusion. According to Cumming, investors are more likely to participate when instruments are not only easy to understand but also clearly tied to future value creation for issuers.

“Participation follows trust and relevance, and as arrangers, our role is to structure transactions that go beyond historical performance and use of proceeds and clearly articulate how a transaction will create value going forward,” she said.

Cumming also highlighted the role of credit enhancement in widening the investor pool, including the use of credit ratings, security structures and guarantees to improve the risk profile of investment offerings. Such measures, she said, can significantly expand market participation and attract a broader base of investors.

She further observed that while some issuers in the private placement market may prefer a smaller, institutional-only investor base for administrative convenience, wider participation can offer long-term benefits, including improved liquidity, reduced funding costs and a stronger market reputation.

In closing, Cumming underscored that financial innovation in Jamaica must prioritise relevance and alignment over unnecessary complexity.

“Creative instruments are less about complexity and more about trust and relevance,” she said. “When products align with investor sentiment, issuer needs and regulatory expectations, liquidity improves naturally.”

Scotia Investments Jamaica Limited continues to play a leading role in shaping Jamaica’s capital markets through innovative financing solutions, strong issuer partnerships and a commitment to broadening access to investment opportunities, while driving sustainable value creation across the financial ecosystem.