A new securities exchange in Curaçao?

December 04, 2008 5:47 AM

In order to provide the international financial markets with better services, the financial industry of Curaçao is currently working on the formalization of a new securities exchange. A new securities exchange does not only have domestic benefits for Curaçao but it also makes it possible for Curaçao to provide a broader spectrum of financial services to the international markets than is presently the case.

The regulation of security exchanges in Curaçao

Stock exchanges that are operated only in the Netherlands Antilles are being regulated by the 1998 Ordinance on the Supervision of Stock Exchanges (Landsverordening Toezicht Effectenbeurzen 1998) (the “Ordinance”). Pursuant to the Ordinance it is forbidden for everyone to operate a securities exchange without having obtained a license from the Minister of Finance of the Netherlands Antilles (the “Minister of Finance”). The Minister of Finance assigned the Central Bank of the Netherlands Antilles with the responsibility to supervise the stock exchanges operating in the Netherlands Antilles.

Up to this date, the Minister of Finance admitted only one securities exchange to the Netherlands Antilles’ financial sector: the International Financial Center and Exchange (“IFCE”). IFCE has its own securities trading system, which serves as a listing and trading market for Brazilian fixed income, mutual funds and other instruments.

The development of a new security exchange

The Foundation Dutch Caribbean Securities Exchange, that represents the financial services industry of Curaçao, is working on the formalization of a Dutch Caribbean Securities Exchange (“DCSX”). The intention of the abovementioned foundation is to create an independent exchange which is set up and run by the financial community for the benefit of that same community. The mission of DCSX is to become an international securities exchange.

The concept of the new securities exchange is based on the conviction that the financial services industry of the Netherlands Antilles and Aruba have need of a centralized, full-service market place to access international financial services and the investment banking industry by providing a market for listing all but not limited to the following: offshore mutual funds, funds of funds, hedge funds, private tax and family asset protection funds, private capital, real estate finance, venture and mezzanine of Curaçao, finance funds, securities: equities, fixed income instruments, derivatives such as: collateralized mortgages, warrants, etc. in a structure offering a transparent, fair and orderly securities exchange with uniform, efficient and safe clearing and settlement practices.

Although there is no time frame when this new securities exchange can be expected, it is to be hoped that this proposed securities exchange will be operational on the short term.

Curaçao, 16 October 2008

(Source: VnEps Kunneman VanDoorne)

For more information please contact Reagan Celestijn at VanEps Kunneman VanDoorne.