JMMB, Scotia apply for broker registration on CXN
Two Jamaican companies have applied for registration as brokers to trade stocks on the Caribbean Exchange Network (CXN) on which trading is expected to kick off in one month.
CXN is an electronic trading system that will allow for real-time cross-border trading of stocks across the Jamaica, Barbados and Trinidad and Tobago stock exchanges initially. Other jurisdictions are expected to join over time. It rules out the need for listing in each market.
Marlene Street-Forrest, general manager of the Jamaica Stock Exchange, said applications have been received from Jamaica Money Market Brokers and Scotia Investment Jamaica Limited for trading on the CXN, and that the applications have also been sent to Trinidad and Barbados.
With the CXN, investors across the three territories will be able to buy and sell equities directly—instead of going through a broker in the territory where the stock is listed—and settle the transactions through a bank of their choice.
But to trade on the CXN, brokers have to be registered with the various exchanges, which both JMMB and Scotia Investment are now in the process of doing.
Street-Forrest is optimistic that the platform will see its first trading activity come April 1.
The CXN platform was established in late January 2011 after being proposed initially in 1989.