Country moves one step closer to electronic trading of Government bonds

Country moves one step closer to electronic trading of Government bonds

NASSAU, BAHAMAS- The Ministry of Finance is pleased to announce that Bahamas Government Registered Stocks
(BGRS) have been approved for listing on the Bahamas International Securities Exchange (BISX
or the Exchange). This major step forward paves the way for Bahamians to be able to buy and
sell Government bonds on the local securities exchange, and track the value of their investments
using the online marketplace.

“We are getting ready to list over 200 government bonds, which (at the time of Press) represents
the entire portfolio of outstanding securities going back to 1999. This will stimulate the entire
Bahamian capital market, improve our financial market infrastructure, and increase accessibility
to Government-backed investments for all Bahamians,” said K. Peter Turnquest, Deputy Prime
Minister and Minister of Finance.

“This is another area where the Government is making good on its promise to modernize and
keep pace with the digital transformation happening globally, and introduce more efficiency to
the Government’s borrowing. Centralized market trading of Government bonds is an important
component for the growth of the entire Bahamian capital market. It’s been a longtime in the
making and I am proud that this Government’s leadership hashelped to finally bring this project
to fruition,” said Minister Turnquest.

The transfer of the secondary market to the Exchange-is a major objective of the Financial
Markets Modernization Project, a collaborative effort between the Ministry of Finance, the
Central Bank of The Bahamas and BISX. The project seeks to create a centralized marketplace
for all Bahamians dollar securities.Several changes are being implemented, including the
creation of the centralized marketplace for all Bahamas Government debt dollar securities.

The project’s phases include: 1) Listing BGRS on BISX, 2) Launching a Bahamas Government
Registered Stock Depository (BGSD), which will facilitate competitive bidding and other
industry-specific market improvements; 3) Transition to a paperless registry, which involves the
introduction of digital certificates for Government bonds; and, 4) Electronic trading.
“With this modernization of the country’s financial market infrastructure, Bahamians will now
have easy access to investment information and market activity on all Government bonds, and
there will be transparency around the pricing of Government securities. Lastly, Bahamians will
be able to see and have an opportunity to trade outstanding securities on an open market,” said
Minister Turnquest.