THE Jamaica Stock Exchange (JSE) will increase the number of markets that Jamaican investors can trade in through its direct market access (DMA) portal by May 2024.

Built in 2022 using international standards to enable seamless trading, the JSE DMA platform allows local investors, through their local brokers, to access foreign markets and trade securities such as shares, bonds and exchange traded funds. This will enable investors to diversify their holdings based on the types of securities, currencies and industries.

“In this first version of the platform investors can trade in Canadian securities,” Althea Daley, consultant, depository services, Jamaica Central Securities Depository Limited (JCSD), shared at the JSE Investor Forum last week.

Among the markets investors can have access to are the: Toronto Stock Exchange (TSX), TSX Venture Exchange (TSXV), The Canadian Securities Exchange (CSE) and NEO Exchange.

Daley, in detailing plans for the DMA platform, however pointed out that the JSE will be adding a number of markets in which Jamaicans can trade in the short term.

“We’re going to be accessing other markets so the USA, Ghana, the UK — those are some of the markets that we’re looking at, and the Caribbean as well,” she stated, adding that the JSE will be integrating the New York, USA-based Nasdaq and Depend.

Depend is the JSE’s settlement system, and the use of the system will reduce the settlement of transactions from three days (T+2) to two days (T+1), in line with changes being made in Canada and the USA.

“We’re also going to [introduce] the return leg, that is where we’re going to be allowing investors in other jurisdictions to have access to our market here in Jamaica. And that’s going to bring more vibrancy to our stock market, it’s going to bring more foreign exchange into the country, and this platform is going to be a game-changer in terms of the Jamaican economy,” Daley added.

At present, only two brokerages houses have signed on to use the DMA portal — Cumax Wealth Management and Barita Investments Limited.

“We are in discussions with other brokers to come on board shortly,” Daley revealed.

According to Kadyll McNaught Hermitt, manager, registrar and depository services, JSE, since the launch of the DMA platform 141 accounts have been opened and 57 securities across the Canadian exchanges.

“Our DMA platform is built using international standards and familiar structures, facilitating seamless trading. This process is simple: Just instruct your brokers and they’ll handle your foreign securities purchase or sale via the DMA platform,” she told the gathering.

“Our DMA platform offers a secure and efficient pathway for secondary trading of international securities, granting you — the investor — further prospects to diversify and augment your wealth,” McNaught Herrmitt added.

The JSE Investor Forum also occasioned the introduction of the JCSD Client Portal, which will allow clients to monitor their transaction both on the local market and the DMA platform.