The ECSE trading day, during which time brokers place orders to buy or sell securities for investors, runs from 9:00 AM to 2:00 PM daily. During the day orders are matched on a continuous basis. Any sell and buy orders that are not traded are carried over to the next business day, unless specified as “day orders”. “Day orders” not traded on a given day are removed from the system.
The ECSE provides the primary market platform for the issuance of Government securities on the Regional Government Securities Market (RGSM). Governments from one island can now sell securities to investors from all the islands, and to investors anywhere in the world
The ECSE creates new opportunities for companies to raise capital by issuing their securities on the regional electronic market to be freely accessible the regional investing public. Companies from one island can now sell securities to investors from all the islands, and to investors anywhere in the world.
A company must first determine if it meets the criteria for listing. To do this, it should seek professional advice from a broker – dealer firm or from the ECSE
When any of the following conditions exist:
- it is making a profit
- it needs to raise capital to finance future growth
- it has a reputation for being a sound and well managed organisation with good potential for making additional profits
- it has a well thought-out and clearly articulated plan for the future
- it has developed a good strategy for coming to the market
- it is considering going public
- it is a public company
A significant amount of pride and prestige are associated with being eligible to list on the ECSE. Companies must qualify by meeting certain key criteria including sufficient capital and an appropriate level and quality of financial reporting and general governance standards. Listing on the Exchange also provides a fair market value for the companies’ shares.
Factors important in analysing a company include the performance of the company, its business history, financial status, management structure, its plans and projections and, if offering new shares, how it plans to use the proceeds of the offering. All of this information is provided in the company’s annual report or quarterly and audited annual financial statement, and, in the case of new offering, the prospectus. These documents can be accessed from the company, ECSE-member intermediaries or on the ECSE’s website – www.ecseonline.com.
An issuer wanting to list on the ECSE must disclose information detailing its management structure, ownership structure, financial health, and short and long-term objectives. Disclosure of these facts informs potential investors about the risks and benefits of an investment. In order to remain listed on the ECSE and sell new issues, a company must publish quarterly financial reports, annual audited financial statements and provide timely information on major activities. For more details about listing and reporting requirements, please contact the ECSE, an ECSE-member intermediary or explore the ECSE’s web site – www.ecseonline.com.
Information is available from:
- The ECSE
- ECSE-member Intermediaries
- Trade information bulletins
- Local and regional media
- The ECSE’s web site – www.ecseonline.com
An investor must provide the intermediary “good funds” to place an order to buy securities on the ECSE. “Good funds” can take the form of cash, cheque, credit or debit card. Once the intermediary has verified that funds are available to cover the transaction, the purchase can be made. The intermediary then handles all the details of the transaction.