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The Regional Governments Securities Market (RGSM) is a regional
market for the trading of debt instruments of the member states
of the ECCU which comprise Anguilla, Antigua and Barbuda,
Dominica, Grenada, Montserrat, St Kitts and Nevis, Saint Lucia,
and St Vincent and the Grenadines. The market was established
in November 2002 and operates on a fully electronic platform.
The instruments on the RGSM take the form of Treasury-bills
and bonds and have varying maturities. These securities are
backed by the full faith of the governments of the issuing
The RGSM was established to assist with the following:
• To supplement the financing needs of member governments
• To minimise the borrowing costs of member governments
and assist in overall debt management
• To deepen the region’s financial markets
by integrating the eight fragmented markets of the ECCU,
thereby creating a single regional financial
• Assist in regional development by expanding the
investment opportunities for regional and
TYPES OF INSTRUMENTS
There are two major types of securities which are
currently on the RGSM with varying maturities: Treasury bills
and bonds. The maturities of these securities currently range
from 91 days to 10 years. Treasury bills are often issued
at a discount with maturities of less than a year. Bonds are
coupon securities with maturities greater than a year.
The RGSM currently utilises the platform of the Eastern
Caribbean Securities Exchange (ECSE) for its primary market
activity. The ECSE and its subsidiaries, the Eastern Caribbean
Central Securities Registry (ECCSR) and the Eastern Caribbean
Central Securities Depository (ECCSD) provide the infrastructure
for the trading, clearance and settlement of securities on
the Regional Government Securities Market (RGSM).
Securities on the RGSM are issued in a dematerialised (paperless)
form, which means that ownership of securities are recorded
and transferred electronically. Settlement takes place at
T+1, one day after the auction date.
Government securities are issued on the market via
auctions, which are used to determine the security’s
rate or yield. Securities are issued based on needs of participating
governments. Auctions are held according to the Regional Issuance
Calendar, which outlines the upcoming auctions of participating
Regional Calendar of Issues
The Regional Calendar outlines the key information on participating
governments’ upcoming issues on the RGSM. The Calendar
includes the auction dates, the tenor and the issue amount
of these securities for the calendar year. The Regional Calendar
is usually updated monthly to enable sufficient planning by
investors who wish to participate in an auction. Currently,
Issuance Calendar is available on the ECCB and the ECSE
Currently, the securities on the RGSM are auctioned using
a uniform price format. This auction methodology ensures that
all successful competitive bids will be allotted at a single,
uniform rate. This rate represents the highest cut-off rate
of all the successful bids submitted at the auction.
Auctions are currently held one day prior to the issue date,
and are usually held from 9:00 am to 12:00 noon, Eastern Caribbean
Securities on the RGSM are open to all potential investors.
However, only licensed intermediaries are allowed to bid in
the RGSM auctions. Thus, all applications for participation
in auctions should be submitted through one of the licensed
broker dealers (intermediaries). A list of licensed broker
dealers is available on the ECSE website.
The minimum bid amount on the RGSM is currently set at XCD5000.00,
with a bid multiplier of XCD1000.00.
Licensed Broker Dealers
Investors wishing to participate in an RGSM auction should
do so through the services of one of the licensed intermediaries.
broker dealers (intermediaries) currently operate in seven
of the eight member territories.
The Regional Debt Coordinating Committee (RDCC) currently
has direct oversight for the RGSM. The RDCC was established
by the Monetary Council to ensure that the market operates
efficiently within the context of harmonised objectives, policies
and procedures. The RDCC comprises Financial Secretaries and/or
Directors of Finance from each of the eight participating
governments of the ECCU as well as the Governor of the ECCB.
The RDCC requires that each participating government submit
a prospectus before going to market for a primary issue. The
prospectus is usually published at least two weeks prior to
the issue and discloses vital information on the issue as
well as the country’s macroeconomic performance. In
addition to the prospectus, participating governments are
required to present semi-annual updates on the economic and
financial performance of their country. This ensures that
investors are kept apprised of the performance of the issuing
The Eastern Caribbean Central Bank performs the role of Fiscal
Agent to Participating Governments. The Bank therefore advises
governments on the most appropriate instruments to issue within
the context of sound debt management practices, as well as
the most appropriate time to issue securities on the primary
market. The ECCB also undertakes some of the administrative
duties associated with the issue.