Caribbean: Capital markets move towards integration
"I think the main stock exchanges in the region should combine"
Several of the most important countries in the Caribbean are considering setting up a regional stock exchange, as capital markets in the region become more integrated. The stock exchanges of Trinidad & Tobago, Jamaica and Barbados already have compatible trading platforms, and their regulators are now exploring ways in which the bourses could become further linked. They are also considering a pan-Caribbean regulatory authority for capital markets, as a precursor to introducing a single currency.
Financial services have become more integrated in the Caribbean following banking consolidation and the cross-listing of several financial institutions. Jamaica’s Capital & Credit Merchant Bank cross-listed in Trinidad & Tobago in September 2003, Jamaican finance house Dehring Bunting & Golding cross-listed in Trinidad & Tobago in October 2004, and Barbados-based Sagicor Financial Corporation cross-listed in Trinidad & Tobago in August 2004.
These followed earlier cross-listings in the region by Barbados’s Republic Bank and Trinidad & Tobago’s Royal Bank. This year there has been widespread speculation that Canadian Imperial Bank of Commerce is planning a bid for Royal Bank.