Publication 4. 2019

“Growth is never by mere chance; it is the result of forces working together.”

James Cash Penney

I come bearing good news. No, actually, great news! So why don’t you grab a friend or two, and over a cup of coffee or tea, indulge in what promises to be an engaging read.

In a time when there is not much good news being shared about the local economy – there are  people losing their jobs, the state of the refinery’s future is uncertain, redundancy of employees from often formidable companies is putting further pressure on employment here and there, among other economy-declining activities – we should seek out that or those which is going great on the island and celebrate it! And celebrate we will! What am I going on about in this context? The local Securities Exchange: the Dutch Caribbean Securities Exchange.

Born out of an idea to propel the local Capital Market, the Exchange has been making headways with its reach and impact, not only locally but also internationally. A lot has been happening, so much so that some of you might not have gotten the chance to appreciate it and what it means for the growth prospects of the local investment community. It is important that you get in the know so that you can assess what these developments mean for you and any potential opportunities that they may bring to you as an investor or for your company.

What are the opportunities you may ask? Well, there were quite a number of developments over the last few months; and the trajectory and frequency of events are amazing!

Since its inception, the Exchange has grown in the number of members that are now licensed to operate under its rules and regulations. Back in 2013, the Exchange had 15 members, 13 listing advisors, and 5 brokers. Five years later and at the end of 2018, the Exchange now boasts 20 members, 17 listing advisors, and 6 brokers. What does this mean for you? It means that you have more options to chose from if you wish to list your company. It also means that you have more options to chose from if you wish to invest in listed companies or listed bonds. It means that the Exchange is growing and moving in the right direction and this augurs well for the local economy because it is a way to activate “sleeping money” in our community.

The listings too are quite diverse. At the end of 2018, the Exchange had 10 bonds listed, all of which are locally issued and of which 4 are private sector issued bonds. !  Let’s make that sink into our minds for a moment. There are 4 locally issued and listed bonds on our Exchange. Who says getting financing at a commercial bank is the only option for companies to raise money? This proves the point beautifully, that there is another way, one that proves to also be financially efficient in a lot of cases! On the stock side, there are 30 equity listings, some of these are not tradable (yet), meaning you are not able to buy or sell them (yet), but quite a few of them are tradable and/or are becoming tradable soon!

Importantly, the Exchange’s reach has gone internationally! Quite a number of Chinese based companies are partnering with the Exchange and listing their companies for trading. This means that as an investor you have a growing number of Chinese companies that you can learn about and possibly invest in. The trajectory of the Exchange’s growth with the inclusion of more and more international interests – whether they are international equity listings or international Listing Advisors – means that the investment world in Curaçao is globalizing well beyond the shores of Curaçao. Exponential growth that is anticipated in the Asian markets can be imported through the prices of the shares of these Chinese based companies and land directly into the pockets of the smart investor if they only they explore.

I guess for me, the most important of the developments is the Exchange’s recent launch of their trading platform. Yes! You have read correctly. At the beginning of February 2019, the Exchange launched its trading system which now allows for automatic trading and settlement of its listings. This is awesome and it now opens the gate for small investors to tap into the opportunities of the growing listings that are now available on the Exchange through one of the approved brokers.

Quite compelling, isn’t it? Let’s not miss out on the opportunities that await! Contact your preferred broker today! The list of DCSX approved brokers can be found at www.dcsx.cw/list-brokers

This editorial is presented to you by the DCSX with the collaboration of Vertex Investments.

Author of this publication: Stephanie Shaw CFA, MBA.

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