Prudence N. Barnes, Contributor
THE FINANCIAL Services Commission (FSC), has expressed satisfaction with the Jamaica Stock Exchange's (JSE) commitment to monitoring the trading activities of its members.
George Roper, senior director of securities at the FSC, said that "the FSC and the Jamaica Stock Exchange work in close collaboration with respect to monitoring trading activities on the market," noting that "the market surveillance function is viewed by both the FSC and the JSE as a top priority."
Mr. Roper was discussing the statements he had made while announcing a conference on insider trading and market manipulation last week. In it he had said, "The FSC, in keeping with its mandate of ensuring that the Jamaica Stock Exchange provides a fair, transparent and efficient marketplace for the trading of listed securities, will be spearheading a more intensive market surveillance and enforce-ment programme."
Mr. Roper also stated some persons could have formed the incorrect impression that the JSE and the FSC were at loggerheads.
SIGNIFICANT ROLE
"The Jamaica Stock Exchange has a significant role to play in market surveillance and they have been committed to discharging that role in a responsible manner," the FSC securities director said.
He explained that the JSE is licensed under the Securities Act and as such, the FSC performed an oversight function of the stock exchange.
Mr. Roper pointed out, however, that the Jamaica Stock Exchange was itself a quasi self-regulatory organisation. "It has rules with which its members (brokers who trade in equities on the stock exchange) must comply," he observed.
"The stock exchange is a regulator. It monitors compliance by its member brokers as it relates to JSE rules. Broker members are also licensed by the FSC as securities dealers," Mr. Roper explained, adding that as such, the brokers were also regulated by the FSC and had to abide by the relevant statutory provisions in the Securities Act.
"Both the JSE and the FSC recognise that our market
stands to benefit from common enhancement of the overall framework of market surveillance in Jamaica," Mr. Roper stated.
The seminar titled 'Deterring Market Manipulation and Insider Trading - A Role for all Market Shareholders' is being held today at the Jamaica Pegasus Hotel.
Mr. Roper revealed that the executive chairman of the Jamaica Stock Exchange, Roy Johnson, who will be making a presentation on the topic 'Market Surveillance, a Jamaica Stock Exchange Priority', will be among the presenters.
"Mr. Johnson will outline some of what the JSE has been doing, and future plans," he said.
On a point of clarification, Mr. Roper stated that while the announcement of the investigation into insider trading surrounding Dyoll was made in March 2005, "the investigation itself began in February, after the JSE had suspended trading of the stock."
