Caribbean Exchanges Network (CXN)Framework and Infrastructure

Presented By: Marlon Yarde

December 5, 2013

WHAT IS THE CXN?

• The Caribbean Exchange Network (CXN) is a solution to allow investors, traders and brokers of all regional countries to have direct access to all financial products that are listed on regional securities exchanges

OBJECTIVES OF THE CXN

Objectives:

To provide an additional channel for encouraging and mobilizing domestic and regional savings

To project a larger footprint for the interest of international investors

To foster the growth of the domestic financial services sector

To increase the overall efficiency of investmentTo help reduce corporate dependence on borrowing and

improve the gearing of the Regional corporate sector

THE NETWORK Access will be provided via each Exchange’s network. Members will

not be required to make individual connections to each Exchange/Depository

Contingency: Appropriate backup systems will be implemented to mitigate against total failure of one exchange or the entire CXN

Telecommunication access– Should the TTSE network become inaccessible and there is still a connection to the other regions through the TTSE, the CXN will continue to operate (Example)

Application Access: Each jurisdiction will continue to control its own market. Access will be granted based on the role of the individual in the respective brokerage house, registrar and institutional investor.

System Administration & Maintenance Day to Day administration will be de-centralized Each system interface will be monitored by the technical team in the

respective regions

What is the real impact for Brokers?

Access to 100+ stocks in 3 markets Larger pool of investors If Trinidadian clients want to purchase stocks which are

traded on Jamaican and/or Barbados Exchanges, then Brokers will have to open account with CSD in these

countries Have with bank in local jurisdiction to facilitate settlement of

CXN transactions via RTGS Monitor 3 markets for best execution of cross listed stocks Explain applicable fees and conditions to clients

Looking ForwardPhase 2:

Connectivity for other Regional Exchanges

Integrated Platforms – One order book

Workstations populated using consolidated data feeds

Order routing through Fixed Gateway - automated order routing

CXN BrokersOrder Entry

InternetPort

AutomatedTrading

MarketData Feeds

CH/Depository

BrowseTerminal

Foreign-based non-resident or other

International Trader

Internet

CXN

OrderRouting

Affirmations

Thank You