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5. Dematerialization - What it is, and the benefits
Extract

In a previous column we noted that the Eastern Caribbean Securities Market (ECSM) is the first fully electronic regional securities market in the Western Hemisphere. In an effort to ensure that the market is efficient and modern, and that trading meets international standards, the Eastern Caribbean Securities Exchange (ECSE) and its subsidiaries have invested heavily in technology.

In keeping with the state-of-the-art nature of the market, there are no physical security certificates. All securities in the ECSM are held in a dematerialized form, which means that the securities are in electronic or uncertificated form, and the records of the holders of securities are maintained electronically at the Eastern Caribbean Central Securities Registry (ECCSR).

This feature of the market is advantageous, given the design of the ECSM. It is a regional market, in which investors from eight countries are able to buy shares in all eight jurisdictions. It would therefore be logistically difficult to move physical certificates from one country to the other on a timely basis.

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