The Jamaica Stock Exchange (JSE) operates an exchange in accordance with the Securities Act, Section 18 and its First Schedule. In keeping with the requirements of the Act, the JSE has rules that support the proper functioning of the market. Such rules include:
- Qualification and Conduct of Business requirements for Member/Dealers
- Conditions for listing of securities for trading on the Exchange
- Disciplining of Member/Dealers
- Continued obligations for listed issuers, which allows persons dealing in their securities, proper information to guide their investment decisions
In addition to the creation of rules that promote a fair and transparent market the JSE also has in place provisions for:
- The effective monitoring and enforcement of compliance with its rules and the provision of the Securities Act and Regulations, and
- Investigating complaints against any of its members.
Notwithstanding the JSE’s responsibilities as detailed above, the Financial Services Commission (FSC) has the ultimate responsibility for the administration of the Securities Act and its Regulations.
Who We Are and What We Do
In 2007 the JSE Board took further measures to strengthen the regulatory structure of the Exchange by delegating its power and responsibilities to oversee the regulatory affairs of the Exchange to the Regulatory and Market Oversight Committee (RMOC). The delegation of its regulatory authority to the RMOC was done through Board Resolution dated November 13, 2007 and was deemed necessary following the Exchange’s demutualization to:
- Separate the JSE’s commercial operations from its regulatory and market oversight functions so as to address any perception of conflict of interest, and
- Ensure a fair, orderly and transparent market for shares and other securities traded on the Exchange.
The RMOC is comprised of not more than five (5) independent directors of the JSE Board and was provided with the following powers and responsibilities:
- To create and supervise a separate division of the Exchange, i.e. the Regulatory and Market Oversight Division (RMOD).
- To address any perception of conflict of interest.
- To adopt measures and rules necessary to maintain and strengthen market integrity and transparency.
- To monitor the conduct of participants such as Member/Dealers of the Exchange and Listed Companies and where necessary take steps to enforce compliance with the JSE Rules.
The current members of the RMOC are: Mrs. Janet Morrison (Chair) , Mr. Livingstone Morrison, Ms. Dian Black, Mr. Eric Scott and Mr. Michael McNaughton.
The RMOD, which is headed by the Chief Regulatory Officer, was created in 2008 and is responsible for the day-to-day oversight of the market through the conducting of:
- Market surveillance and investigation
- Enforcement and compliance with the Rules of the JSE which govern the conduct and dealings of its Member/Dealers and Listed Companies.
Bloomberg in 2015 acknowledged the regulatory operations of the JSE, by stating that the JSE’s regulatory efforts contributed to the Exchange’s performance and ranking as the number one stock exchange in the world by Bloomberg in the year 2015.
We promote market transparency, integrity and efficiency through the consistent execution of operational activities, which are broadly categorized as:
Listed Company Compliance
Involves the review of filings by listed companies concerning financial statements, material information and corporate actions.
This operational area is activated once the Division is in receipt of a complaint.
Rules Research and Development
The process of reviewing the rules of the Exchange and making recommendations for rule amendment or new rules.
The Division’s enforcement activities involves the levying of fines, delisting and suspension of Member/Dealers and Listed Companies in accordance with the rules of the Exchange.
Involves the review of financial returns, monitoring of trading activities on the JSE & Member/Dealers compliance to applicable rules of the Exchange, and inspections of Member/Dealers.
The RMOD risk assessment applies to all areas of its operations and is supported by examination from the JSE's internal auditor.
The process of reviewing the rules of the Exchange and making recommendations for rule amendment or new rules.Involves examining daily trading activities on the Exchange to detect market infractions. In conducting this function, the Division utilizes a state of the art automated market surveillance system