:The Regional Government Securities Market > About the RGSM
About the RGSM
(Regional Government Securities Market)
The basic objective of the Regional Government Securities Market (RGSM) initiative is the establishment of a fully functional and efficient regional market to meet the financing needs of the Member Governments of the Eastern Caribbean Currency Union (ECCU) as they pursue their development objectives. The initiative seeks to strengthen the existing primary market for treasury bills and bonds, and to promote the development of a secondary market for these securities.
The establishment of the RGSM is expected to have a number of beneficial effects. It is intended to integrate the 8 fragmented markets of the ECCU, creating a single regional market to facilitate the cross-border issue and secondary trading of government securities It would serve to deepen the region's financial markets and facilitate their integration across the currency union. It should also assist in the further development of the private debt and equity market, and should provide a fillip to the Eastern Caribbean Securities Market (ECSM). The regional nature of the market should assist in promoting the unfettered flow of capital and liquidity across the currency union and lead to increased savings and investment opportunities for the private sector, which should augur well for the overall growth objective. The removal of existing impediments should result in a shift in the holder base. While the institutional investors will continue to dominate the market, cross-border activity should increase, as these investors seek to exploit arbitrage opportunities that may exist initially, and more fundamentally, to diversify their portfolios. Retail investor interest is also likely to increase in the primary- and secondary- market through licensed intermediaries that will make a market for such securities.