CARICOM CONSIDERS A REGIONAL STOCK MARKET

The feasibility and practicalities of a regional stock exchange are the subject of a study being carried out by CARICOM(Caribbean Community) through its business support arm, the Private Sector Organisation Inc. (CPSO).

Outlining the basis for the study, the Caribbean Development Bank, which is funding the exercise, said: “Despite the presence of several stock exchanges across the region, Caribbean capital markets remain fragmented, limiting cross-border participation and constraining the scale of investment opportunities available to businesses and investors.”

The CDB advocates that a more integrated regional market could help unlock new sources of financing, particularly for micro, small and medium-sized enterprises (MSMEs), while supporting greater economic resilience and competitiveness.

“The Caribbean’s long-term growth depends on our ability to create stronger, more accessible financial markets that support entrepreneurship, innovation and investment,” said Lisa Harding, Division Chief, Private Sector Division at CDB. “This feasibility study will provide the analysis needed to determine how a regional stock exchange can strengthen access to finance, support private sector development, and advance regional economic integration. It also reflects CDB’s commitment to building institutions and financial systems that foster inclusive and sustainable growth across our member countries.”

The study will examine opportunities to create a more connected and efficient regional capital market capable of mobilising investment, improving liquidity, reducing financing costs, and expanding access to capital for businesses across CARICOM Member States.

The CDB grant of US$100,000 for the study will finance Phase I of a broader initiative aimed at assessing viable models for establishing a regional securities exchange and advancing deeper capital market integration across the Caribbean.

The feasibility study will analyse capital market demand across CARICOM Member States, assess legal and regulatory requirements for greater market integration, evaluate international stock exchange models, and engage stakeholders from across the public and private sectors. The study will also explore opportunities to improve access to financing for women-led enterprises, youth entrepreneurs, and other traditionally underserved groups.

The initiative is being implemented by the CARICOM Private Sector Organisation (CPSO) with support from CDB and the Inter-American Development Bank (IDB) for a total of US$324,700 towards the completion of Phase I of the study.

According to the CDB, upon completion, the findings will be presented at a regional symposium, providing policymakers, regulators, private sector stakeholders and development partners with evidence-based recommendations to guide decisions on the future of regional capital market integration.

The regional development bank says the project aligns with its strategic objective of building economic resilience and supporting regional efforts to strengthen financial markets, promote private sector development, and advance Caribbean integration.