Business View Caribbean l Feb 2023

111 112 BUSINESS VIEW CARIBBEAN VOLUME 10, ISSUE 2 BUSINESS VIEW CARIBBEAN VOLUME 10, ISSUE 2 approval from the Financial Services Commission, allowing them to raise funds via bonds or other placements in the market. We introduced the private market primarily to provide liquidity for accredited investors interested in trading in these securities. Business View Magazine: How many companies listed on the JSE are Jamaican? Could you provide a breakdown of where the companies listed on the JSE originate from? Dr. Street-Forrest: Most of the companies listed on the JSE are primarily Jamaican-based, but we have companies from outside of Jamaica, including Canada, Barbados, and Trinidad. Business View Magazine: Let’s talk about performance. If you could place the JSE on a list of all the stock exchanges worldwide, where does it place? Dr. Street-Forrest: The JSE operates on a global level. Looking at our overall market performance, we generally perform in the top ten most years. For example, although our main market was down in 2022, the junior and our US-denominated markets had double- digit trends of 16% year-over-year growth. Business View Magazine: The Covid pandemic affected most economic sectors, including financial markets. One of these effects has been the inflationary climate in the US, with the Federal Reserve incrementally increasing the overnight rate. How has this inflationary climate affected the JSE’s overall business? Dr. Street-Forrest: Jamaica is currently grappling with imported inflation from North America alongside domestic inflation. Generally speaking, we are battling inflation through policies by the central bank. Some of these policies, like an interest rate increase, have impacted the stock market because investors will always flee to a safe haven looking for short-term wins. JAMA I CA STOCK EXCHANGE other technology-driven software that we use to provide services for our clients (member dealers) and their clients (investors), besides issuers who offer the securities. Business View Magazine: What are some highlights of the requirements companies must fulfill to be listed on the JSE? Dr. Street-Forrest: Companies intending to list on the exchange need to prove they have robust corporate governance. To ascertain this, we’ll look at the board composition regarding independence and mix and their audit and remuneration committees. They must also demonstrate that they uphold core corporate governance practices and offer at least 20% of shareholdings to the public. Alongside these requirements for the main market, other conditions apply to the junior market, like having audited financial statements for at least five years. Companies can list on the JSE via a prospectus issue (IPO) or introduction. Besides these requirements, all companies must demonstrate the ability to provide post-listing updates to the market. Business View Magazine: Your listings have grown significantly over the last two years. Could you tell us how this has changed your listing composition? Dr. Street-Forrest: We have had many listings on the junior and main markets. In addition, we recently introduced a private market, where we currently have three companies representing fourteen security listings on the private market. Business View Magazine: How is the private market different from the other markets the JSE offers? Dr. Street-Forrest: The private market allows companies to list exempt distribution securities to the market. It is an accredited investor market catering only to accredited investors who understand the various risks of these types of bonds. Securities listed on the private market require