By Al Edwards, Business Co-ordinatorAFTER 16 years as general manager of the 34-year-old Jamaica Stock Exchange (JSE), 49-year-old Wain Iton has stepped down and will leave the JSE's 40 Harbour Street downtown Kingston headquarters in April of this year.
Speaking with Wednesday Business last night, Mr. Iton said: "After 16 years I think its time for a change. I will serve out my three months notice and will say goodbye to the JSE in April. I have no idea who will succeed me."
Mr. Iton said that he was fielding one or two opportunities but it was very likely that he would remain in Jamaica.
He is credited with doing a good job as general manager of the JSE and has guided it growth in pre-eminence as the leading stock exchange in the Caribbean, shifting it to trading five days per week.
Speaking on the benefits of listing Mr. Iton has said that a public listing could be used to raise funds to increase working capital, retire debt and finance future growth and expansion. In addition, making a public offering could bring a better price than a private placement, there would be improvement in a company's debt-equity ratio and net worth and it provides liquidity for shareholders. He has often said that the strategic objective of the JSE is to list at least five additional companies each year.
Back in 2002, he was instrumental in ensuring that companies listed on the JSE provide more detailed financial information of their performance in their quarterly financial statements. As a result it amended its Rule 407 by removing the list of minimum financial information and substituting new requirements. The new requirements are based on the internationally accepted principle that the objectives of an interim report should be essentially the same as an annual report.
RESHAPE
More recently Mr. Iton has been focused upon efforts to reshape the JSE's ownership structure. That project should be completed later this year. In order to demutualise, the JSE plans to incorporate itself as a company and list on the local exchange in line with other exchanges throughout the world. He said that the JSE is looking at the fixed income market and is considering new product lines such as margin trades and options.
Dehring, Bunting & Golding briefly flirted with options but it is something that the JSE continues to explore.
Mr. Iton oversaw the transfer from manual trade to electronic trading.
And there is growing dynamism between the Trinidad and Jamaican exchanges. With Trinidad now putting its depository in place there is now easier transitioning between the two exchanges with inter-depository movement. It wasn't too long ago that share certificates had to be physically delivered.
At the end of last year the JSE index broke the 60,000 barrier. Last year it had it best year ever reporting significant increases of over 90 per cent in trade volume and value in its nine-month report, over the previous year's performance.
The number of shares changing hands up to the end of September was 2.2 billion, a 92.3 per cent increase compared to the previous year's figure of 1.1 billion.
"A notable factor in this pleasing performance is the improvement in our technological infrastructure that facilitates greater trade volumes. We have adopted a number of efficiencies which has resulted in reduced risks and increased confidence."
The value of the trades up to the end of the period under review is $10.7 billion, an increase of over 97 per cent over 2002's $5.4 billion.
"This has been the best performance I have seen since I have been at the JSE. Before 2003, 1995 was the best year mainly due to the Cable & Wireless listing which saw 3.6 million units valued at $11.6 billion.
The increases have positively impacted the JSE's operating income which at $83.3 million, year-to-date has shown a 141 per cent increase.
"The Council made a considered decision to increase the number of stockbrokers trading on the Exchange from six to ten as we believed that this would increase the number of investors in the market place and generate improved order flow.
"Over the last 18 months there have been two de-listings. However, since last year there have been two new listings making 41 companies listed on the JSE."
It is not known whether Mr. Iton will retain a seat on the JSE Council.
