Pop quiz! How many countries make up the Eastern Caribbean? While you guys Google the answer, did you know that eight countries in the Eastern Caribbean came together to form their own stock exchange? For the past few weeks, we’ve been taking a look at the stock exchanges in the English-speaking Caribbean. We’ve already talked about the Trinidad and Tobago Stock Exchange, the Guyana Stock Exchange, the Barbados Stock Exchange and of course, we talk about the Jamaica stock exchange all the time. Next on the list is the Eastern Caribbean Securities Exchange or ECSE.

Eastern Caribbean Securities Exchange
Jodi-kay Williams

The Eastern Caribbean Securities Exchange (ECSE) is one of the five major stock exchanges in the English speaking Caribbean. It is unique for a number of reasons, the first being when it was founded in 2001, it was the first fully electronic regional securities market in the Western Hemisphere.
It was built to facilitate the listing and trading of securities from several countries.

The countries whose securities are listed on the ECSE are all members of the Eastern Caribbean Currency Union, ECCU. They are Anguilla, Antigua and Barbuda, Dominica, Grenada, Montserrat, St Kitts and Nevis, St Lucia, and St Vincent and the Grenadines.

One question that you might have right away is, doesn’t it get confusing having to deal with multiple currencies on one exchange? Nope! Because countries that are a part of the ECCU all have the same currency, the Eastern Caribbean Dollar. If you’re familiar with the Organisation of Eastern Caribbean States then that bit of news isn’t shocking to you. The ECCU is an offshoot of the OECS. One EC dollar is today worth about JMD$55 Jamaican dollars, or US$0.37

Another question you might ask is, how come Trinidad and Tobago and Barbados not only have individual stock exchanges but also have their own currencies? Aren’t they, geographically, a part of the eastern Caribbean? Well, you’re right. Both countries are technically a part of the Eastern Caribbean but they are not a part of the ECCU, which is overseen by the Eastern Caribbean Central Bank and provides financial regulations that govern the EC currency. So that’s why Trinidad and Tobago and Barbados can have their own stock exchanges. Make sure to watch my other videos to find out more about them.

The ECSE is headquartered on the island of St Kitts, and its listed securities are a combination of government securities, corporate debt, and shares in companies that mainly operate in the utility and financial services industries. Trading takes place from Monday to Friday.

The ECSE has two different types of markets: the Eastern Caribbean Securities Market and the Regional Government Securities Market.

The Regional Government Securities Market was created in 2002 and is dedicated solely to securities issued by the governments of the ECCU. Everything from government bonds to treasury bills. But the Eastern Caribbean Securities Market is where most of the action occurs. This is where daily trading takes place, and investors can buy or sell shares in companies.

Trading on this market is not as robust as on the Jamaica Stock Exchange. A quick scan of their trading reports will show you that the exchange sometimes goes days without any trading. And when trading does take place, it’s only one or two securities.

Share prices on the ECSE range from EC$1.25, which is about US$0.46 cents to about EC$45, which is roughly US$17. For comparison, prices on the JSE currently range between less than JMD$1, which is less than one cent US, to over JMD$1000, or about US$7 dollars. Similar to what happens on the Barbados Stock Exchange, prices on the ECSE can remain the same for days, sometimes weeks, because they are not being bought or sold.

To invest in the Eastern Caribbean Securities Exchange is relatively easy.
The ECSE has a list of six authorised brokers from St Kitts and Nevis, St Lucia, St Vincent and the Grenadines and Grenada. You can contact any one of these brokers and they will get you started with an investment account and an advisor to help you decide what investments are best for you and your money. Or of course, you can reach out to an advisor at PROVEN Wealth, who can make contact on your behalf. DM me for a contact.

Categories: MoneyMondaysJA