CDB funds feasibility study on CARICOM regional stock exchange

The Caribbean Development Bank (CDB) has approved a US$100,000 grant to study whether a single regional stock exchange could deepen capital-market integration across the Caribbean, an initiative that would reshape how businesses raise capital and investors trade securities across the Caribbean Community (CARICOM) borders.

“The Caribbean’s long-term growth depends on our ability to create stronger, more accessible financial markets that support entrepreneurship, innovation and investment,” said Lisa Harding, division chief of the Private Sector Division at CDB. “This feasibility study will provide the analysis needed to determine how a regional stock exchange can strengthen access to finance, support private-sector development, and advance regional economic integration.”

The grant, drawn from the CDB’s Special Development Fund 11, will finance phase I of a broader assessment being carried out by the Caribbean Community Private Sector Organisation. The Inter-American Development Bank is co-funding the effort, bringing the total phase I budget to US$324,700.

Caribbean capital markets remain fragmented despite the presence of national exchanges in Jamaica, Trinidad and Tobago, Barbados and the Eastern Caribbean. According to the CDB, that fragmentation is “limiting cross-border participation and constraining the scale of investment opportunities available to businesses and investors”.

The study will analyse capital-market demand across CARICOM member states, assess legal and regulatory requirements for greater integration, evaluate international stock exchange models, and engage public- and private-sector stakeholders. The CDB said the study would also “explore opportunities to improve access to financing for women-led enterprises, youth entrepreneurs, and other traditionally underserved groups”.

The initiative comes as the Jamaica Stock Exchange (JSE) pursues its own expansion, having launched a Micro Market in June for firms seeking to raise between J$50 million and J$100 million. Cross-listing arrangements between Jamaica and Trinidad are already in place, though the JSE, in the past, has acknowledged hurdles in making those arrangements work seamlessly.

Upon completion, phase I findings will be presented at a regional symposium, providing policymakers, regulators, and development partners with evidence-based recommendations on the future of regional capital-market integration.

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