JohnsonIN light of the decision taken by the Appeal Court last week which in effect barred the Fair Trading Commission (FTC) from exercising jurisdiction over the JSE on behalf of applicants for membership of the Exchange who had sought relief from the FTC.
Commenting on the decision, chairman of the JSE, Roy L.Johnson said: "It is indeed a landmark in that it brings to an end seven long and costly years of legal enquiry and some operational hesitancy.
The decision is also momentous for us, first, because it vindicates our view that we have both the right and the responsibility to determine the qualifications and the fee structure of our members, subject to the supervision prescribed by the Securities Act."
Mr. Johnson pointed out that the decision gives the JSE the freedom to focus upon its priorities which he said were the continuing strengthening and development of the JSE and of the capital market.
"Our first priority is to resume our attention to the admission of new members. We currently have before us four applications to become members of the Exchange. These are: Dehring, Bunting & Golding Merchant and Investment Bank, Grace Kennedy & Company, Capital & Credit Merchant Bank and Sigma Investments
New members will bring new vision and new clients. This will increase the liquidity of our market," Mr.Johnson added.
The JSE's general manager Wain Iton stressed the importance of the necessary growth in the number of listed companies on the JSE and that it should be seen as the first resort for raising capital and for increasing the equity participation of Jamaicans.
Both Mr. Iton and Mr.Johnson urged the Government to take all steps necessary to ensure that their multi billion dollar divestment programme requires some participation in the equities market.
The JSE is keen to move forward with its programme to process fixed income investments through the stock exchange. The fixed income market made up primarily of Government securities, is several times larger than the equities market. It is keenly aware of the view within the market that the broadening of the ownership structure of the exchange would be seen as an inducement to fixed income participation.
Mr.Johnson added: "The JSE is not opposed to this and we have already begun an examination of the requirements and process of demutualising the exchange in order to facilitate wider equity participation in our own entity.
We believe that our modernisation programme with the creation of the Jamaica Securities Depository (JCSD) and the introduction of an electronic trading platform have dramatically reduced our share settlement risk and cost within the last three years."
