THE Jamaica Stock Exchange’s (JSE) long-held ambition to establish a unified Caribbean capital market has made notable progress, but significant hurdles remain.

Marlene Street-Forrest, managing director of the JSE, expressed frustration and determination regarding the persistent challenges, nearly a decade after initial efforts to create this market. Despite partnerships with Barbados and Trinidad & Tobago since 2016 and technical advancements through a collaboration with South Africa-based Securities Trading Technology (SST), the creation of a seamless regional exchange has proven to be a complex issue that extends beyond technological solutions.

“We did connect—we had the same trading platform, settlement platform, and a common service provider, and we shared expenses jointly,” Street-Forrest told the Jamaica Observer.

However, progress toward a unified Caribbean capital market was hindered when Jamaican brokers faced difficulties registering in Trinidad under a new regulatory framework. Although an agreement had been reached allowing brokers to pay a nominal US$100 fee to operate across borders, registration issues nonetheless emerged, creating a hurdle for regional integration.

“The problem was the registration. They were told that forms weren’t filled out properly, and that’s not how it’s done here…the brokers were faced with countless hurdles,” Street-Forrest lamented, while admitting that revisiting these issues was painful for her.

“Some brokers even decided to purchase brokerage houses in Trinidad because they wanted to enter the market. That’s where we faced the biggest challenge.”

Street-Forrest pointed out that the issue is not a lack of infrastructure, but rather political and regulatory resistance from individual Caribbean nations, each reluctant to give up control over their own financial markets.

“The regulatory differences are not that great. There are differences, for example, we might be T+1, one is T+2; and there may be different closing hours, etc. But these are minor,” she explained.

“What we really need is regulatory recognition of every broker as a Caricom broker or a common passport. If you’re registered in Jamaica, you shouldn’t have to register in Trinidad, for example. But everyone wants their own exchange.”

JSE Chairman Steven Whittingham echoed similar concerns, acknowledging the deep-rooted challenges that have hindered regional integration.

“There’s national pride in here,” Whittingham said. “We’re dealing with a problem that has not been solved since the days of the Federation. Governments have struggled to collaborate, and the private sector has faced its own challenges. We don’t have a robust regional private sector organisation yet—it’s still developing. It’s not as simple as just physically connecting exchanges.”

Whittingham continued, emphasising the need for a strategic, long-term approach. “The ultimate goal is to create a capital market platform that allows investors to seamlessly trade across markets, companies to raise capital across different markets, and the financial community to facilitate those transactions. But we’ve been taking a step back.”

Despite these setbacks, the JSE is pressing forward. Whittingham outlined that the exchange is actively engaging with stakeholders across the Caribbean to overcome the regulatory and political resistance that continues to impede integration. The JSE is in discussions with various governments, financial institutions, and regulatory bodies to address the barriers that have stunted the growth of a unified capital market.

“This is a complicated task, but it’s one we’re not giving up on. We have to be open-minded and sensitive to the different markets, but we’ve been making progress,” Whittingham said.

A key initiative in this effort is the JSE’s recent memorandum of understanding (MOU) with the Georgetown Chamber of Commerce in Guyana, aimed at exploring the development of a stock exchange in that country.

“The idea is to create a regional platform where ownership and participation are shared across the Caribbean,” Street-Forrest explained. “By having a stake in the exchange, countries can collaborate more effectively, reducing resistance to the idea of a unified market.”

Alongside these regional partnerships, the JSE is looking to technology as a critical enabler of integration. Street-Forrest highlighted the role of artificial intelligence (AI) in overcoming some of the technical hurdles.

“We no longer need a single physical platform,” she said. “AI can help us build a seamless order book, allowing investors across the region to transact without needing to interact with every single exchange. This will reduce the need for extensive physical infrastructure, which has been a major barrier.”

Whittingham also emphasised the role of technology in overcoming the complexities related to currency differences across markets. “Technology is allowing us to connect exchanges in a way that wasn’t possible before,” he said. “But we still need to tackle the issue of different currencies and ensure that capital can flow smoothly across borders.”

The JSE is also focusing on strengthening its relationships with the brokerage community, which plays a key role in the integration process. Whittingham mentioned that the GraceKennedy Group, where he also serves as deputy CEO, operates in almost every English-speaking Caribbean market.

“The team at GK Capital is always looking for opportunities in other markets, and we work with partners who are eager to explore cross-border investments,” he said. “One of the advantages of being part of a diversified group is that we can share opportunities with our capital markets team and ensure ongoing dialogue. This creates a compelling value proposition for the Jamaica Stock Exchange.”