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JSE to sell new stockbrokerage licence

Published:Friday | June 29, 2012 | 12:00 AM
Marlene Street-Forrest, general manager of Jamaica Stock Exchange. - Rudolph Brown/Photographer

New listing of JSE shares on the cards

Sabrina Gordon, Business Reporter

The Jamaica Stock Exchange (JSE) has opened applications for a new member dealer, which will grow the cohort of brokerages licensed to trade on the stock market to an even dozen.

The licence will allow the buying and selling of stock, as well as arranging listings on the exchange.

"We are excited about adding a new member," said Marlene Street-Forrest, general manager of the Jamaica Stock Exchange.

Applicants must have proper technology to allow for connectivity to the JSE's trading and settlement platform, she said.

The exchange's 11 members comprise Barita Investments Limited; Capital & Credit Securities Limited; First Global Financial Services Limited; JMMB Securities Limited; M/VL Stockbrokers Limited; Mayberry Investments Limited; NCB Capital Markets Limited; Pan Caribbean Financial Services Limited; Scotia Investments Jamaica Limited; Stocks and Securities Limited; and Victoria Mutual Wealth Management Limited. Four are listed on the exchange, as is JSE the company.

The new licence is the first to be issued since the JSE demutualised its operations four years ago, a process that stripped dealer members of ownership rights. The JSE also separated its regulatory and commercial/operational functions. It created a new business development unit to focus on developing new income streams.

JSE's listing on the exchange is currently limited to 33 million variable-rate preference shares, but Street-Forrest said the company is planning another float of ordinary shares by yearend via the exchange.

Applicants for the new licence are required to include a business plan and specific bid price.

"We have seen in the past where new member dealer brings greater vibrancy and helps to grow the exchange in terms of expertise and new products," said Street-Forrest.

The JSE is the primary vehicle for the raising of equity capital in Jamaica. Other areas of its short- to medium-term growth strategy include the listing of international companies, a fixed-income trading platform and development of a futures and options market.