About the Regional Government Securities Market (RGSM)
The Regional Government Securities Market (RGSM) is a primary market for the issue of securities by the Governments of the member countries of the Eastern Caribbean Currency Union (ECCU). The market was created in 2002, with the basic objective of establishing a fully functional and efficient regional market to meet the financing needs of the Member Governments of the ECCU as they pursue their development objectives. The initiative sought 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 was intended to have several beneficial effects. These include furthering the integration of the 8 fragmented markets of the ECCU, to create a single regional market to facilitate the cross-border issue of Government securities, and to promote secondary trading; deepening the region’s financial markets and facilitating their integration across the currency union; and assisting in the further development of the private debt and equity markets, and providing a fillip to the Eastern Caribbean Securities Market (ECSM). The regional nature of the market also aimed to assist in promoting the unfettered flow of capital and liquidity across the currency union and to lead to increased savings and investment opportunities for the private sector, supporting the overall growth objective. It was anticipated that the removal of then existing impediments would result in a shift in the securities holder base. Institutional investors were expected to continue to dominate the market, cross-border activity was projected to increase, as these investors sought to exploit arbitrage opportunities that may have existed initially, and more fundamentally, diversify their portfolios. However, it was also anticipated that retail investor interest would increase in the primary and secondary securities markets as licensed intermediaries make markets for such securities.
For more information about the RGSM please visit the ECCU Public Debt and Market Information Web Portal here