of the Barbados Stock Exchange… by 2016 we demutualized, and former members became shareholders, making us a for-profit organization,” Yarde says. The shifts into the current foundation of the BSE were driven by the need to streamline the process of trading securities. Previously, buying and selling shares was a cumbersome legal process that required direct negotiations and formal legal documentation. Recognizing the inefficiencies, business leaders in Barbados sought to establish a structured, transparent exchange that would facilitate trade and encourage investment. Over the years, the Exchange expanded its offerings to attract international players. A pivotal moment came in 2016 with the launch of the International Securities Market (ISM), which enabled trading in global securities, including assets denominated in US dollars, Canadian dollars, and British pounds. This strategic pivot increased the exchange’s attractiveness to international investors and, overall, allowed investors and issuers to operate within a regulated and more efficient marketplace, strengthening Barbados as both a leading force in regional capital markets and a global financial hub. Today, the Barbados Stock Exchange Inc. (BSE) operates as part of a well-structured group comprising three entities: the BSE itself, and its two subsidiaries, the Barbados Central Securities Depository Inc. (BCSDI), and the BCSD Custodian Trust Services Inc. (BCTSI). Each organization serves a specific role in ensuring seamless operations and market stability. The BCSDI, established in 1999, manages registrar services, including maintaining shareholder records and processing dividend payments. It acts as the backbone of the exchange, ensuring the smooth transfer of securities and managing investor accounts. BCTSI, the newest addition to the group, was launched in 2021 to provide custodial and trust services for institutional investors such as insurance companies and pension funds. “Organizations like insurance companies need to have certain assets set aside for certain contingencies, and the law requires an independent third party to custody those assets. So, we function as custodians for the financial institutions here in Barbados,”Yarde explains. 30 BUSINESS VIEW CARIBBEAN VOLUME 12, ISSUE 03
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