The Barbados Stock Exchange
The original Barbados Securities Exchange was established in June 1987 under the Securities Act to create a market to promote trading in financial securities and encourage investment by the public in business enterprises.
Re-incorporated on August 2, 2001, with a revised Securities Act 2001-13, the establishment of the Barbados Securities Commission was enabled. The Commission is responsible for regulating the Barbados Capital Market, including all public companies, whether listed or not.
The Barbados Stock Exchange (BSE) is an association of Member-Brokers, operating a central marketplace for trading securities and remains a non-profit organization privately owned by its members.
Management
The affairs on the BSE are administered by a Board of Directors through a General Manager and consist of four designated members, four elected and one independent.
The four designated members represent the Central Bank of Barbados, the Bar Association, the Barbados Chamber of Commerce and Industry, and the Institute of Bankers. The elected members are chosen from the Membership of the Stock Exchange.
The Board of Directors set By-Laws and Rules to regulate the affairs and business of the Exchange. The By-laws and Rules are standards and rules of conduct to which members must adhere. Only Registered Brokers representing Members of the BSE are allowed to trade securities on the Exchange.
Listing
Generally, a company wishing to be listed on the Exchange and meet all required criteria must first submit a prospectus that complies with the Companies Act and the Securities Act for review and approval.
A new Securities Act was passed in 2001 to facilitate the establishment of a securities commission and make better provisions for regulating the securities market, the capital market, and investors.
Twenty-six (26) manufacturing, distribution, utility, and service companies are listed on the Exchange. An unlisted securities market for small companies was launched at the end of 1992.
The Securities Exchanges of Barbados, Trinidad and Tobago, and Jamaica work closely together, and nationals are eligible to cross-trade in each market.
Trading Volume and Market Capitalisation
The Market Capitalisation at December 31, 2001 was $3,656,210,138.98 for the Local Market, $2,755,405,123.75 for the Cross Listed Market and $22,833,000.20 for the Junior Market.
The BSE Local index at the end of 2001 was 2,107.29. When you compare that to our performance on December 31, 2005, you can see that the market has grown considerably; Market Capitalisation was $ 10,970,643,855.10 for the Local Market, an increase of 200.06%; and $ 11,814,250,846.13 for the Cross Listed market, a rise of 328.77%.
On December 31, 2005, the BSE Local Index was 3,927.58, an increase of 86.38%; and the Cross Listed Index moved from 901.25 to 2,230.34, a rise of 155.08%.
