The Role of a Caribbean Exchange Moving Forward Jamaica Stock Exchange – Regional Investments & Capital Markets Conference 2018 Date: January 25th, 2018 By: Marlon Yarde, Managing Director. BSE The Role of a Stock Exchange Connect With Entities with excess capital Businesses that need capital Why Invest? . Augment your savings . Gain part ownership in LLCs . Combat Inflation . Shares can be used as collateral . Options for investing: Stocks Bonds Investment Funds Derivative Securities The Role of a Caribbean Exchange Moving Forward Changing Caribbean Growing Businesses: Investment & Business Social Stock Exchanges Enabling Access to Cultures: Enabling & Impact Investing Capital International Business Entry 1 2 3 Access to Capital Cost: Consideration: In financing, the measurable cost of obtaining capital Debt vs. Equity Financing Options: Depending on business size, there are a number of financing options available TypicallyStock for Market long-term Listing financing Business Loan/Line of Credit Factoring Normally for a business’ consolidation and growth objectives Angel Investors Venture Capital Mezzanine Capital Way to attract private investors also provides an exit mechanism Gain a higherGrants public profile Online Lending Other Methods Lending Capital Risk: The chance that an investment’s actual return will differ from the expected return. Why Brokers & Financial Advisors are KEY! Impact Investing Corporate Social Responsibility: The sense of duty to positively serve society as a whole Stakeholders: Society Institutional & Retail Investors Family Foundations & Charities Companies & Organizations Government Impact Investing CAUTION!! . Many organizations target risk- adjusted market-rate returns or Need for close to market-rate returns of 10 – 15% “patient capital” . HARDLY ANY IMPACTFUL SOCIAL ENTERPRISES ARE CAPABLE OF ACHIEVING THIS RESULT! Facilitating International Business & Investment Scenario #1: International Investment Opportunities International investors can trade domestic securities on the local exchange. International Business Companies (IBCs) can list securities on the local exchange. CARICOM Country “Omega” Facilitating International Business & Investment Scenario #2: Business Facilitation – IBCs & local companies IBCs and local companies can serve a global audience. International Business Companies (IBCs) set up physical + operations in the country. Barbados Local Business The ISM A cost-effective, international market for tax-efficient listing and trading. LISTING VEHICLES IDEAL LISTING CANDIDATE The ISM can accommodate the following corporate Issuers concerned with the following are prime structurings: candidates for an ISM listing: International Business Companies (IBCs) Strengthen Special Purpose Vehicles (SPVs) ‘Local Substance’ Special Purpose Acquisition Companies (SPACs) Limited Partnerships Traditional Financings Incorporated Cell Companies Value Proposition International Societies with Restricted Liability (ISRLs) Global Aspirations: Graduation Framework The Horizon . Blockchain Challenges & Opportunities . Cryptocurrencies . OECD Scrutiny . Engaging Our Diasporas . International Alliances . The Right Legislation Contact Us The Barbados Stock Exchange Barbados Stock Exchange Inc. Barbados Central Securities The Barbados Stock Exchange and its wholly owned Depository Inc. subsidiary, the Barbados Central Securities Depository 8th Avenue, Belleville (BCSDI) are designated as Self Regulatory Organizations St. Michael, BB11114 (SROs) under the Securities Act and are regulated by the Barbados Financial Services Commission. Tel: 246.629.1107 The Barbados Stock Exchange Inc. is an Affiliate member . Fax: 246.429.8942 of the World Federation of Exchanges. Email: [email protected].