THE Jamaica Stock Exchange (JSE) will next week launch its US-denominated securities market, which will enable companies to list and trade shares in hard currency.

Proven Investments will be the first to list on July 14 (see related story on page 4B), should its prospectus be approved, which will bring the capitalisation of the new market to US$33.6 million ($2.89 billion).

The same rules that apply to the regular exchange will apply to the US-denominated securities market, but companies wanting to trade its securities on the new market will have to list its securities on the Exchange. That is, companies already listed on the JSE would have to delist then relist on the new market or simply issue a new security, such as a preference share.

JSE general manager Marlene Street-Forrest, at a press conference held yesterday at the exchange’s Harbour Street headquarters in downtown Kingston, said that there is “no doubt” that more companies would list on this market, as discussions held with member dealers revealed that there was demand for local trading of securities in hard currency.

Street-Forrest also said that, aside from diversifying its revenue streams by making more products available to investors, the US-denominated market would be attractive to the diaspora, which may have held interest in investing in Jamaica in the past but feared the instability of the Jamaica dollar.

JSE chairman Donovan Perkins added that the new market created another mechanism that facilitates an efficient capital market.

“We believe this initiative has the potential to further expand our market and its listings, and will provide additional investment options for persons interested in diversifying their portfolios via our Exchange,” Perkins said.

BO