jse 2008 annual report

8/9/2019 JSE 2008 Annual Report

1/110

Communi

Throu

Dialog

4

0YearsofAchievem

KnowledgeandIn

2008

ANNUAL


2/110

ProvidingAFair,

Efficientand

TransparentStockMarket

JAMAICA

STOC

KEXCHANGE

2008ANNUALREPORT

1

2008

ANNUALREP

ORT

Commu

nication

Thr

ough

Dia

logue


3/110

ProvidingAFair,

Efficientand


JAMAICA

STOC

KEXCHANGE

2008ANNUALR

EPORT

TAB

LEOF

ONTENTS

2

Financia

lStatementofJSE

GroupC

onsolidatedFinancialStatement

Mission

Statement..................................................................................................................................3

OurCorporateObjectives.......................................................................................................................4

st

Noticeo

f32AnnualGeneralM

eeting...................................................................................................5

Director

s'Report....................................................................................................................................6

MembersoftheJSE'sBoardofDirectors..............................................................

.................................7

JSEBoardCommittees2008/2009......................................................................................................11

TheManagementTeam........................................................................................................................12

Chairman'sReportCurtisMartin...........................................................................

...............................13

Chairman'sReportRegulatoryandMarketOversightCo

mmittee(RMOC)-Hilary

PhilipsQ.C..........15

AuditCommitteeReport.......................................................................................................................17

CompensationCommitteeRepo

rt........................................................................................................18

Manage

mentDiscussionandAnalysis................................................................................................19

GeneralManager'sReportJSE.............................................................................................................29

Jamaica

StockExchangeRegulatoryFunctions...................................................

...............................35

Corpora

teHighlights.............................................................................................................................36

Financial&StatisticalHighlights

......................................

.......................................

..............................44

Shareholdings.......................................................................................................................................45

Auditors

Report.....................................................................................................................................46

C

onsolidatedBalanceSh

eet......................................................................................................49

C

onsolidatedIncome

.................................................................

...............................50

C

onsolidatedStatementofChangesinEquity...........................................................................51

C

onsolidatedStatementofCashFlows.....................................................................................52

B

alanceSheet...........................................................................................................................53

Income

..........

.......................................

.......................................

..............................54

S

tatementofChangesin

Equity................................................................................................55

S

tatementofCashFlows

......................................

.......................................

..............................56

N

otestotheFinancialStatements........................................................................................57-99

ProductsFeature................................................................................................................................100

Stockbrokerages&ContactInformation............................................................................................103

JSEYearlyTradingSummary................................................................................

.............................104

Corpora

teInformation.........................................................................................................................105

Stateme

ntofCorporateGovernancePrinciples&Practic

es..............................................................106

Sta

tement

Statement


4/110

ProvidingAFair,

Efficientand


JAMAICA

STOC

KEXCHANGE

2008ANNUALR

EPORT

3

Toprovideafair,efficient,ethical

a

ndtransparentmediumfortheconduct

ofaviablesecu

ritiesmarket

thatfacilitatesthe

mobilizationof

capitaltofinance

thegrowthand

developmento

fthenation.

ISSION

STATEMENT


5/110

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Efficientand


JAMAICA

STOCK

EXCHANGE

2008ANNUALR

EPORT

4

OU

RCORPORAT

EOBJECTIVE

S

The

JamaicaStockExchang

ewasincorporatedasa

pr

ivatelimitedcompanyin

August1968,withthe

sto

ckmarketcommencing

operationsinFebruary

1969

.

Itsprincipalobjectivesare:

Top

romotetheorderlyandtransparentdevelopment

ofthe

stockmarketandthestockexchangeinJamaica.

Toen

surethatthestockmarketanditsbrokermembers

operateatthehigheststandardspracticable.

Todevelop,applyandenfor

cetherulesdesignedto

en

surepublicconfidenceinthestockmarketand

itsbroker-members.

Toprovidefacilitiesforthetransactionofstock

marketbusiness.

Toconductresearch,disseminaterelevant

in

formationandmaintainlocalandinternational

relationshipswhichcanenhancethedevelopment

oftheJamaicas

tockmarket.


6/110

ProvidingAFair,

Efficientand


JAMAICA

STOCK

EXCHANGE

2008ANNUALR

EPORT

5

nd

NOTICEISHE

REBYGIVENthattheTh

irtySecond(32)AnnualGeneralMeetingoftheJamaicaStockExchangewillbeheld

attheJamaica

StockExchange,40HarbourStreet,Kingstonon

Thursday,June25,200

9,commencingat1:00p

.m.forthe

followingpurpo

ses:

1.

Toapp

ointDirectors.

Thefo

llowingDirectorswillret

ireattheAnnualGeneralMeetingandareeligibleforre-appointmentfo

rtheyear

2009/2

010inaccordancewithA

rticle95oftheArticlesofAssociationofAssociationoftheCompany.

Mr.ChristopherWilliam

s

-

Retirin

g

o

MissDianBlack

-

Retirin

g

o

Mr.GarthKiddoe

-

Retirin

g

o

Mr.AllanLewis

-

Retirin

g

o

Mr.LivingstoneMorriso

n

-

Retirin

g

Toconsiderand(ifthoughtfit)passthefollowingresolutio

n.

ThattheretiringDirectorsbeand

areherebyre-electedasdirectorsoftheCompany.

2.

Tofixtheremunerationofthe

Auditorsortodetermine

themannerinwhichsu

chremunerationistobefixed.To

consid

erand(ifthoughtfit)pass

thefollowingResolution:

ThattheDirectorsbeandareherebyauthorizedtofixtherem

unerationoftheAuditors

atafiguretobeagreedwith

them.

Toreceive,andifapproved,adopttheAuditedFinancialStatementsfortheyeare

ndedDecember31,2008,together

withtheDirectors'andAuditors'Reports.Toconsiderand(ifthoughtfit)passthefo

llowingResolution:

ThattheAuditedFinancialStatementsfortheyearendedD

ecember31,2008,andthe

ReportsoftheDirectorsan

dAuditors

beadop

ted.

TofixthefeesoftheDirectors

ortodeterminetheman

nerinwhichsuchfeesa

retobefixed.Toconsiderand(if

though

tfit)passthefollowingRe

solution:

ThattheDirectorsbeandareherebyauthorizedtofixtheirfeesforthefiscalperiod2009/2010.

Totran

sactanyotherordinarybusinessofthecompany.

th

DATEDTHIS1

5DAYOFMAY2009

BYORDEROF

THEBOARD

.

MarleneJ.Stre

et-Forrest

Secretary

IMPORTANTN

OTEFORMEMBERSW

HOARENOTABLETO

ATTEND:

AmemberentitledtoattendandvoteatthemeetingcanappointaProx

ytovoteonhisbehalf.The

personsoauthorizedshall

beentitled

toexercisethesa

mepowersasthememberw

hichherepresents.

NOTICEOF32ndANNU

ALGENERAL

MEETING

3.

4.

5.


7/110

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Efficientand


JAMAICA

STOCK

EXCHANGE

2008ANNUALR

EPORT

6

TheDirectors'submitherewiththeStatementofConsolidated

RevenueExpenses,Profit,AssetsandLiabilitiesofthe

JamaicaStock

Exchangeanditswhollyownedsubsidiary,the

JamaicaCentralSecuritiesDepositoryfortheyearended

December31,2008.

OperatingRev

enuefortheyearwas$470.3m

comparedtotherevenueof$205.9m

for2007,anincreaseo

f128.4%.

InvestmentIncomewas$91.0mcompar

edto$34.9m,anincreaseof160.8%over2007.

Totalexpenses

fortheyearincreasedby

42%to$302.3min2008

.Therewasasurplusfro

moperationof$173.9m

compared

toadeficitof$7

.9min2007.

Totalassetsof

thecompanyanditssub

sidiaryasatDecember31,2008were$1,332.6m

comparedto$1,003.6m

for2007.

ThesefiguresincludeCompensationFundAssetsof$510.1mand$463.8mfor2008an

d2007respectively.Shareholders

equitydecreasedby1.5%from$928.3m

to$914.2m.

Theauditors,D

eloitteandTouchehavesignifiedtheirwillingnesstocontinueinoffice.

........................

.......................................

.......

Mr.CurtisMartin

Chairman

DIRECTORSREPORT


8/110

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Efficientand


JAMAICA

STOCK

EXCHANGE

2008ANNUALR

EPORT

7

DIRECT

ORSANDSE

NIORMANAG

EMENT

PROFILESOF

DIRECTORS

Mr.CurtisMartin-Chairman

CurtisMartinistheChairmanofthe

JamaicaStock

ExchangeLimitedand

alsotheJama

icaCentralSecurities

DepositoryLtd.HeisPresidentand

CEOofCapita

landCreditMerchant

BankandDeputyGroupPresidentof

CapitalandC

reditFinancialGroup

Ltd.Mr.MartinisChairmanofthe

ListingandStandardsCommittee,the

Compensation

Committee

and

the

ExecutiveCommitteeoftheJSE.

Mr

.LeoWilliams

Leo

WilliamsistheExecutiveDirectorofWilliams

&A

ssociatesInvestmentsLtd.This

firmseeksto

attr

actcapitaltobusinessesseeking

todevelopin

the

region.Oneoftheirmostrecent

successesis

the

conceptualization

and

successful

cap

italizationofthefirstREITintheCaribbean.

ThisnowtradesontheJamaicaSto

ckExchange

as

theCarltonSavannahREITorCREIT.Heis

alsoDirectorofJCSD.

Mrs.RitaHumprie

s-Lewin

Mrs.Humphries-Lewin

is

a

past

ChairmanoftheJS

EandistheFounder

andChairmanoftheBaritaGroupof

Companies

whic

hincludes

Barita

InvestmentsLimite

d,BaritaUnitTrusts

ManagementCom

panyLimited

and

BaritaPortfolioManagementCompany

Limited.Sheison

eofthepioneersof

thestockbrokingindustryhavingbeen

inthebusinessfor

approximatelythirty-

five(35)years.

Mr.EdwinMcKie

Mr.McKieistheChairmanand

Managing

DirectorofM/VLStockbrokersLimited.Mr.

Mc

Kie,whowasawardedthe

Orderof

Dis

tinction

CommanderClass

forhis

ser

vicestoJamaicainthefieldofbanking,is

aformertradeadministratorandformer

Chairman

ofthe

Trade

Board

and

the

AgricultureCreditBank.Healsos

ervedasa

BoardMemberoftheNationalInvestment

BankofJamaicaandtheBanko

fJamaica.

He

currentlyservesontheBoardofthe

DevelopmentBankofJamaica.M

r.McKieis

the

ChairmanoftheCorporateGovernance

CommitteeoftheJSE.

Priortothat,hewastheInternationalBusiness

DevelopmentManagerofJMMBLtd.theparent

com

panyofJMMBSecuritiesLtd.

Hewasthe

foundingManagingDirectorofJMM

BSecurities,

the

stockbrokeragearmofJamaicaM

oneyMarket

Bro

kers.Mr.WilliamsresignedasaD

irectorofthe

JSE

inJune2008.


9/110

ProvidingAFair,

Efficientand


JAMAICA

STOCK

EXCHANGE

2008ANNUALR

EPORT

8

DIRECT

ORSANDSE

NIORMANAG

EMENT

PROFILESOF

DIRECTORS

Mr.DonovanPerkins

DonovanPerkins

isthePresident&

CEO

ofPan

Caribbean

Financial

ServicesLimited(PCFS).Inaddition

toservingonthe

BoardswithinPan

Caribbean,Mr.Pe

rkinsservesonthe

BoardsofPan-Ja

maicanInvestment

TrustLtd.,FirstJa

maicaInvestments

Ltd.,JamaicaPro

ducersGroupLtd.,

NationalInsuranceFund

and

the

NationalWaterCo

mmission.Heisan

active

executive

ofthe

financial

servicescommunity,havingservedas

VicePresidentoftheJamaicaBankers

Associationand

thePrivateSector

OrganizationofJamaica.

Mr.MarkCroskery

Mr.M

arkCroskeryisthePresident&C

EOofStocks

&Se

curitiesLtd(SSL)andservesas

aCompany

Spec

ificDirector.Mr.Croskeryisrespo

nsibleforthe

Company'sgrowth,profitabilityandstrategicvision

tomakeSSLtheleadingproviderofG

lobalWealth

ManagementsolutionstoJamaicans.

Mr.

Croskery

previouslyinterned

atPrudential

Financial,Inc.(nowWachoviaSecurities)inMiami,

Floridaonthefixedincomedeskbeforegoingonto

being

theleadingWealthManager

atNational

CommercialBankCapitalMarketsLtd.

(NCBCM)as

wella

sanEquityTrader.

Mr.CroskeryservesasaDirectoro

ntheSugar

CompanyofJamaica(SCJ)whereheservesonthe

Fina

nce

and

AuditSub-Committee,as

a

CommissionerontheJamaicaRacing

Commission

(JRC

)whereheservesontheFinan

ceandAudit

Sub-CommitteeandontheIslandIce

&Beverage

Company(Jamaica).

Mr.ChristopherW

illiams

ChristopherWillia

ms

is

the

Managing

DirectorofNCBC

apitalMarketsLimited.

HecurrentlyservesasChairmanofthe

JamaicaAssociationfortheDeaf,Director

ofthe

Jamaica

College

Old

Boys

Association,Dire

ctorofthe

Jamaica

CollegeFoundation,andCouncilMember

ofthe

Jamaica

Securities

Dealers

Association.

Mr.Williamsisals

oaDirectorofseveral

NCB

subsidiaries,these

are:

NCB(Cayman)Lim

ited,NCBInvestments

Limited,NCBCap

italMarkets(Cayman)

Limited

and

NCB

Insurance

Company

Limited.

Mr

.AllanLewis

Alla

nLewisistheSeniorVicePresident,Group

Strategy,oftheVictoriaMutualG

roupLimited

wherehehasservedforthepast3y

ears.Priorto

this

,Mr.LewisservedasManagin

gDirectorof

PrimeAssetManagementLimited,

whereheis

currently

a

Director.Mr.Lewis

has

had

a

distinguishedcareerinlifeinsurance

andpension

fundriskmanagement,assetmana

gement,and

stra

tegicplanning.Heachievedthedesignation

Ass

ociateoftheSocietyofActuariesin1986,anda

MastersinBusinessAdministrationin

1987.

No

twithstanding

his

pro

fessional

acc

omplishmentsheiscommittedtosupporting

the

widercommunity.Hispassionfo

rprimaryand

sec

ondaryeducationmotivatedhim

toobtaina

MastersinEducationin2002.Allanisamemberof

the

KiwanisClubofNorthSt.Andrew

;amentorfor

studentsattheUniversityoftheWestIndiesandis

am

emberoftheBoardofDirectors

oftheMona

Pre

paratorySchoolFoundation.


10/110

ProvidingAFair,

Efficientand

TransparentStoc

kMarket

JAMAICA

STOCK

EXCHANGE

2008ANNUALR

EPORT

9

DIRECT

ORSANDSE

NIORMANAG

EMENT

PROFILESOF

DIRECTORS

Mr.ChristopherBerry

ChristopherBerry

hasbeenthe

Chairman

and

ChiefExecutive

OfficerofMayberryInvestments

Limited

since

19

93.A

former

DeputyChairman

oftheJSE,he

sitsonseveralbo

ards,including

the

Jamaica

Cen

tralSecurities

Depository,

theForestry

Conservancy,Ape

xHealthCare

Associates

Limitedand

Apex

PharmacyLimited.

MissSandraShirley-DeputyChairman

SandraShirleyassumedtheroleofP

residentof

FirstGlo

balFinancialServicesLimitedonApril1,

2004andrelinquishedthisofficeinOc

tober2008.

Miss

Shirley

has

overtwenty

(20

)years

of

experien

ceandexpertiseinthefinanc

ialsectorin

Jamaica

andoverseas.Shehasw

orkedwith

entitiess

uchastheBankers'Trust,NewYork,NCB

Group,

theSIGMA

Group

and

its

associated

entitiesa

ndnowlendsthatexpertiseto

FirstGlobal

Financia

lServices.Miss

Shirley

serves

in

a

numberoforganizationsincludingtheSoroptomist

Club,th

eCouncilofCommunityC

ollegesof

Jamaica

,theIndependenceParkLtd,

theWomen

inIntern

ationalTradeInvestmentClub,andthe

NationalDanceTheatreCompanyof

Jamaica.In

2003,sh

ewasaskedtoservetheMon

aSchoolof

BusinessasanAlisterMcIntyreFellowandmore

recently

theJamaicaInstituteofManagementhas

conferredonheritshighestaward,Fellowofthe

Jamaica

nInstituteofManagement.Sheresigned

asDirectoroftheJSEinOctober2008.

MissAnyaSchnoor

AnyaSchnooristheC

hiefExecutiveOfficer

ofScotiaDBGInvestmentsLimitedandthe

SeniorVicePreside

ntoftheScotiabank

Group'sWealthMana

gementDivision.She

is

also

the

Presidentofthe

Jamaica

Securities

DealersAssociation

and

has

servedasthePres

identofthePrimary

DealersAssociation.

SheisaDirectorof

ScotiaDBG

MerchantBank,ScotiaDBG

Fund

Managers

and

Prime

Asset

ManagementLimited.Sheisalsoamember

oftheHEARTNTAFinanceCommitteeand

sits

on

Scotiabank

Jamaica's

ALCO

Committee.

M

rs.MarleneStreetForrest

M

arlene

Street-Forrestis

theGeneral

M

anageroftheJamaicaStock

Exchange.

M

rs.Street-Forresthas

a

B.Sc.in

M

anagementStudiesandanMBA.Shehas

overtwenty

five

years

of

combined

experience

in

financialan

dgeneral

m

anagement.

Hermandate

asGeneral

M

anageroftheJSE,istoc

ontinuethe

process

ofdeveloping

the

Exchange,

ensuringthatcuttingedgete

chnologyis

usedtoassistinprovidingtheg

reatestlevel

ofefficienciesinthemarket.Mrs.Street-

Forrest,whoisaJusticeof

thePeace,

servesasSecretaryoftheBoar

doftheJSE

anda

Directorofthe

Jama

icaCentral

SecuritiesDepositoryLtd.


11/110

ProvidingAFair,

Efficientand

TransparentStoc

kMarket

JAMAICA

STOCK

EXCHANGE

2008ANNUALR

EPORT

10

MissDianBlack

DianBlackistheDirector,Securities

Management(D

ebtManagementUnit)

intheMinistryo

fFinance&thePublic

Service.In

thiscapacity

she

has

responsibilityfor

allactivitiesrelatedto

theregistrarand

paymentsfunctionsfor

governmentsecuritiesandprovidesthe

necessaryinterfacebetweentheJSE

andtheGovernm

ent.

MissHilaryPhillipsQ.C.

HilaryPhillipsisaPartnerinth

elawfirm,

Grant,Stewart,Phillipsand

Company

where

she

has

practised

for

approximately

30

years.

She

was

elevatedtotherankofQueen

'sCounsel

in1998andhasbeenthePre

sidentand

Vice

Presidentofthe

Jam

aican

Bar

Association.ShehasservedastheVice

Presidentofthe

Organisation

of

Commonwealth

Caribbean

Bar

Associationssince2003-2007.

Miss

PhillipsistheChairmanofth

eConduct

ReviewCommitteeandtheRe

gulatory&

MarketOversightCommitteeo

ftheJSE.

INDEP

ENDENTMEMBERSOFTH

EJSEBOAR

DOFDIRECT

ORS

Mr.RobertDrummo

nd

RobertDrummondwa

sappointedPresidentof

FirstGlobalFinancialServicesLimited,effective

November1,2008.Priortohisappointment,Mr.

Drummond

was

the

CEO

ofFG

Funds

Management

(Cayman)

Limited,

GraceKennedy'smutualfundsmanagement

business.Inaddition

,healsofunctionedas

PrincipalofGK

In

vestments,developing,

executingandintegratingmergers,acquisitions

andnewbusinessven

tures.

RobertDrummond

joined

GraceKennedy

LimitedinFebruary2005asGroupBusiness

DevelopmentManage

r.HejoinedtheBoardof

theJSEinOctober2008.

JulianMair

Julia

nMairistheChiefInvestmentStrategist

atJa

maicaMoneyMarketBroker

sandhas

over

16yearsofexperienceinthe

Jamaican

finan

cialsector.Mr.Mairhasheldp

ositionsat

lead

ing

Jamaican

financialin

stitutions

inclu

dingHeadofTreasuryandInvestment

servicesatDehring,BuntingandG

oldingand

SeniorTraderand

Cambio

Managerat

JMM

B.Inaddition,Mr.Mairwasfo

rmerlythe

ManagingDirectorofLetsInvestmentLtd.

HeisafoundingmemberoftheJamaica

SecuritiesDealersAssociation.He

servesas

aDir

ectorofJMMBSecuritiesLimited,JMMB

Inter

nationalandJMMBBDIAmerica.

DIRECT

ORSANDSENIORMANAG

EMENT

PRO

FILESOFDIRECTORS(Con

td)


12/110

ProvidingAFair,Efficientand

TransparentStoc

kMarket

JAMAICA

STOCK

EXCHANGE

2008ANNUALR

EPORT

11

Mr.Livingstone

Morrison

LivingstoneMo

rrisonistheDeputy

Governorofthe

BankofJamaicawith

responsibility

for

Finance

and

Technology,PaymentSystems,

InvestmentandRiskManagement.

Mr.Morrisonjo

inedthestaffofthe

BankofJamaicain1982andworked

forseveralyearsin

the

Financial

InstitutionsSupervisoryDivision.

Between1998a

nd2002,Mr.Morrison

servedastheDivisionChiefofthe

Finance

and

Technology

Division,

withcoreresponsibilitiesforstrategic

management

ofthe

accounting,

finance,and

information

and

communication

technologyfunctions

oftheBank.M

r.Morrisonisalsoa

Directorofth

eJamaica

Central

SecuritiesDepository.

J

SEBOARD

COM

MITTEES2008/2009

LISTINGSTANDARDSCOMMITTEE

Chairman:

Mr.CurtisMartin

MissSandraShirley

Mrs.RitaHum

phries-Lewin

Mrs.MarleneStreetForrest

Mr.Christo

pherWilliams

Mr.Livin

gstoneMorrison

CONDU

CTREVIEWCOMMITTEE

Chairman:

MissHilaryPhillips,Q.C.

Mr.Livin

gstoneMorrison

MissDianBlack

Mr.GarthKiddoe

Mrs.JaneGeorge

COMPENSATIONCOMMITTEE

Chairman:

Mr.CurtisMartin

Mr.GarthKiddoe


Mr.DonovanPerkins

Mr.MarkCroskery

R

EGULATORYANDMARKETOVERSIGHTCOMMITTEE

C

hairman:


MissDianBlack

Mr.GarthKiddoe

Mr.Livin

gstoneMorrison

Mrs.JaneGeorge

A

UDIT&FINANCECOMMITTEE

C

hairman:

Mr.GarthKiddoe

MissHillaryPhillips,Q.C.

MissDianBlack

Mr.EdMcKie

(oralternateDr.

DerrickMcKoy)

Mr.AllanLewis

Mr.Livin

gstoneMorrison

Mr.JulianMair

C

ORPORATEGOVERNANCE

C

hairman:

Mr.EdMcKie

(oralternateDr.

D.McKoy)

Mrs.MarleneStreetForrest

Mr.GarthKiddoe

MissSandraShirley

MissAn

yaSchnoor

NOMINATINGCOMMITTEE

AllBoardMembers

INDEPENDENTMEMBERSOFTHEJSEBOAR

DOFDIRECT

ORS

(Cont

d)

Mr.JaneGeo

rge

Mrs.JaneGeorgeassumedtheroleof

CorporateAttorney-at-LawandHeadof

the

LegalD

epartmentand

Corporate

SecretariatoftheLascelles,deMercado

GroupofCom

paniesin2001.Sheisa

memberoftheLawSocietyofEngland&

Walesandthe

JamaicanBarAssociation.

Mrs.George,

whohasapproximately20

yearsexperienceandexpertiseinthe

legalprofess

ion

in

Jamaica

and

the

UnitedKingdom,joinedtheBoardofthe

JamaicaStoc

kExchangein2008.She

sits

on

the

Regulatory

and

Market

OversightCo

mmitteeandtheConduct

ReviewComm

itteeoftheBoard.

Mr.GarthKiddoe

Mr.KiddoeistheformerDeanofthe

FacultyofBusinessand

Management

atthe

University

of

Technology,

Jamaica

and

previouslythe

Chief

FinancialOfficerattheJamaicaPublic

ServiceCompanyLimite

d.Heisthe

immediate

pastPresidentofthe

InstituteofCharteredAccountantsof

the

Caribbean

as

wellas

its

representativeontheBoa

rdofTrustees

oftheCaribbeanCourtofJusticeTrust

Fund.HeisaPastPre

sidentofthe

InstituteofCharteredAccountantsof

JamaicaandoftheJama

icaInstitution

ofEngineers.Mr.Kiddoe

is

the

ChairmanoftheAudit

andFinance

CommitteeoftheBoardoftheJSE.


13/110


TransparentStoc

kMarket

JAMAICA

STOCK

EXCHANGE

2008ANNUALR

EPORT

12

T

HEMANAGEM

ENTTEAM

From

lefttoright:

MissMichelleSirdar

-

Manager,Re

gistrarServices(JCSD

)

Mrs.B

eulahJohnson

-

Manager,Eq

uityOperations(JCSD

)

Mr.RobinLevy

-

GeneralMan

ager,JCSD&Deputy

GeneralManager,JSE

MissRiccalyaRobb

-

TradingOffic

er

Mrs.M

arleneStreetForrest

-

GeneralMan

ager,JSE

MissJosephineLewis

-

Manager,Tru

steeServices(JCSD)

MissSuzetteMcNaught

-

Manager,InformationTechnology&Systems

Mrs.D

oreenParsonsSmith

-

HumanReso

urcesOfficer

Mr.W

entworthGraham

-

ChiefRegula

toryOfficer

Mrs.S

uzetteWhyte

-

AccountingM

anager

Mr.NevilleEllis

-

SeniorMarke

tingOfficer


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F

romtheCha

irman'sDesk

Mr.CurtisMartin

Chairman

(C

ontinued)

TheJamaicaStockExchange(JSE)weathersthestorms.

Thewordthatbest

describestheyear2008

ischallenging.Thisistheyear

whenweexperiencedamajordownturnintheglobaleconomyresultin

gfromthe

USsubprimedebacle.Thiswascompounded

bytheincreaseinoilpric

esandthe

collapseofsomeofthemajorUScorporation

s.Thiscausedmanytremorsinthe

Jamaicaneconomy,withaworseningofthe

country'scurrentaccountdeficit,a

declineintheNetInternationalReserve(N

IR)anda13.68%

declineinthe

Jamaicandollar,2007.Theseshocksare

notimmediatelynoticea

bleinour

financialresultsasw

ewerebuoyedbyafewlargevolumeandvaluetransactions

ontheExchange.

Basedontheglobalandlocalchallenges

withinthefinancialsector,normal

marketactivitiesreg

isteredsignsofafurther

slowdown.However,in

spiteofall

thesechallenges,th

eJamaicaStockExchangewasabletoachievese

veralofits

objectivessetoutfo

rthe2008/9period,whic

hwereinkeepingwithit

sstrategic

direction.ThreemajorobjectivesthattheJSE

achievedduringtheyearwere:

1.

Demutualization

AsIindicatedin2007,theJSEwouldhavemovedwithala

critytobe

demutualized.Iamindeedpleasedtoreportthatwecompletedthefinal

phaseofth

edemutualizationproce

ssonApril2,2008.Con

sequently,

theindepen

dentRegulatoryMarket

andOversightCommitte

e(RMOC)

andDivisio

n(RMOD)wascreated.Mr.WentworthGrah

am,Chief

Regulatory

Officer,managesthisDivision.TheRegulatoryM

arketand

OversightC

ommittee,whichiscom

prisedofindependentm

embersof

theBoarda

ndchairedbyMissHilary

Phillips,Q.C.isrespons

ibleforthe

oversightofthisDivision.

Theseimprovementswillresultinstronger

regulatoryo

versightandgreatermar

kettransparency.

2.

ListingoftheJSE

OnJune30

,2008,weexperienced

anothermajormilestone

whenthe

JSE'sPreferenceShareswerelis

tedonitsownExchan

ge.

This

achievementisthefirstofitskindwithintheCaribbeanRegionandwe

havejoined

Exchangessuchasthe

NewYorkStockExchangeandthe

LondonSto

ckExchangeintakingthispath.

Wemustex

pressourgratitudetothepublicforthetremendoussupport

ofourInitia

lPublicOfferinginwhichweraisedJ$66M.The

Offerwas

oversubscribedbyapproximately200%.


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Fro

mtheChairman'sDesk(Contd

)

.......................

.......................................

...

Mr.CurtisA.M

artin

Chairman

JamaicaStock

Exchange

May21,2009

3.

Draftin

gofDocumentsforthe

IntroductionoftheJuniorMarket

SmallandMediumsizedbusine

ssesaretheengineofgr

owthinanyeconomyastheyareabletocreateem

ployment

andus

uallygenerategoodvalu

efortheirowners.Inkeepingwithitsvision,the

JSEsawtheneedtointroducethe

JuniorMarkettoaccommodate

smallandmediumsized

businessestoaccesseq

uitycapital.Consequently,theJSE

madeaproposaltotheGovernm

entontheessentialplatformandarisingfromthis,inOctober2008Cabinetsignaled

itssupportfortheJuniorMarketbyapprovingcertaintax

benefits.TheJSEwillbe

launchingtheJuniorMa

rketbythe

firstquarterof2009.

BoardMembe

rs

TheMemberso

ftheBoardworkedassid

uouslyin2008,toensure

thattheJSEcontinuesitsmandatetoprovideafa

ir,efficient

andtransparentstockmarkettoits

stakeholders.TheBoa

rdsspecialfocusduringtheyearwasthep

rocessof

demutualization,thepreferenceshare

issueandtheprocessw

hichwillultimatelylead

totheestablishmentof

theJunior

Market.Iamex

tremelygratefultotheme

mbersfortheircontributionthroughout2008.

Iwouldalsolike

tothankthemanagementandstaffoftheJSEfortheirinvaluableeffortsduringtheyear.

GoingForward

TheJSEwillmaintainitspartnershipwithitskeystakeholdersine

nsuringthecontinuedde

velopmentofaviablesto

ckmarket.

Wearelooking

forwardtoforgingdeeperallianceswithourCaribbeanneighbourstoe

nsurethattheExchang

esremain

relevantandareabletowithstandthech

allengesassociatedwith

theglobalfinancialmeltd

own,which,fromallindicationswill

worsenin2009

.Wewillbelookingatw

aysthatwillenableustoimproveregulationofthemarketsoastoboostinvestors'

confidenceand

mostimportantlyexpand

themarket.

Whileweareexpectingaverydifficult20

09/10periodasthefallou

tcontinuesintheglobalmarketplace,weremaincommitted

toprovideafair

,efficientandtransparentstockmarketasaninteg

ralpartofthegrowthofthecapitalmarketinJamaica.

FinancialHigh

lights

Inspiteofthechallengesin2008,theJSEwasabletoweatherthe

storm.TheyearendingDecember31,2008sawallareasof

incomeincreas

eoverthepreviousyear

(2007).ThisisdueprimarilytotheLascelles/CLSpiritsTransaction,which

positively

affectedCessRevenue,FeeIncomea

ndInvestmentIncome.

ThisisreflectedintheC

ompany'sConsolidated

Financial

Statements.Th

eCompany'sFinancialStatementsshowthatOp

eratingIncomefor2008

was$470.3millionrepresentinga

remarkableincreaseof$264.4millionor

128.4%overthefigureof$205.89millionrecordedforthepreviousyear.Su

rplusfrom

Operationsof$

173.9millionincreasedb

y$181.9millionor2,302%

,whencomparedtothe

performancein2007.

Netsurplusfor

2008was$207.7million

,upsignificantlyfrom$4

4.1millionin2007which

isanincreaseof$163.6

millionor

370.81%.Inves

tmentIncomewas$91.0

3millioncomparedto$34

.91millionin2007.


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Chairman

(C

ontinued)

TheYear2008inReview

Theyear2008oug

httoresonateinthemindsofmanyforavery

longtime

becauseoftheglob

alfinancialturbulenceth

ataffectedestablishedb

usinesses

andordinarypeople

.Clearly,onewillalsore

memberthatthesituatio

ntested,if

notexposed,them

ettleoftheregulatory

operationsinmostma

rketsand

Jamaicawasnoexception.Whilethemagn

itudeofthetestsvariesacrossthe

globe,theJamaicaStockExchange(JSE),andmorespecificallytheR

egulatory

andMarketOversightCommittee,whichoverseestheregulatoryresponsibilities

oftheJSE,wasconfrontedwithissuesthat

requiredkeenattention.Inthese

circumstancestheRMOChadtobeboldandthoroughinitsdecisionmaking

process,asitsough

ttomaintainitsresolveto

promotemarkettranspa

rencyand

integrity,whichultim

atelyresultsinsafeguardingtheinterestofthemarket.The

RMOCiscommittedtobeingfairandaccu

rateinwhatitdoes;the

refore,its

decisionsweretake

nagainstthebackgroundofin-depthanalysisa

ndexpert

advice.Inthisregard,itcanthereforereportthatalldecisionstaken

duringthe

courseofthelast1

2monthswererespectfullyreceivedandacceptedbythe

marketanditsstakeholders.

AchievementsDuringtheYear

WhileImaynotbeatlibertytodivulgeth

edetailsoftheissues

thatwere

undertakenbythe

RMOC,itcanbereportedthatovertheperiod

,thetotal

numberofissuesthatwereassessedbyth

eRegulatory&Market

Oversight

Division(RMOD)was86,whichrepresentsmorethan300%increas

eoverthe

previousyear.Thischangecouldbeattrib

utedtotheRMOD'scon

centrated

operationsontheEx

change'sregulatorymatters.

Chairman'sReport,RegulatoryandMarketOversightCommittee

(RMO

C)

NatureofCases

Number

MarketInfractions

67

Complaints

8

OtherComplianceIssues

11

Total

86


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16

OtherRegulat

oryMattersin2008

FortheperiodinreviewtheRMOCwas

abletosatisfythefollow

ing:

1.

Ta

blingnewrulesfortheJ

SE,namely,THERMOC

,DisciplinaryProceedin

gsandManagementDis

cussion&

Analysis(MD&A).

2.

StaffingtheRMODwithits

fullcomplementofofficers.AttheinceptionofitsoperationsonApril1,2008it

hadonlytwo(2)officersandbyMayitwasableto

recruitanothertwo(2)to

completethestaffing

re

quirements.

3.

TheRMOCwasabletoclosemostoftheissuesth

atweretransferredtoitfromtheBoardoftheJS

E.

4.

TheCommitteewasabletocompleteitsfullcomplementwiththeinclusion

ofMrs.JaneGeorge,an

In

dependentBoardMemb

eroftheJSE,whorepre

sentsthePrivateSector

OrganizationofJamaica

.

5.

Otherachievementsofthe

Committeeinclude,steeringtheRMODto:

a.Undertakeapro

cessthathasledtothecreatingofalogoandtagline.

b.DevelopandimplementitsMissionState

ment,whichisTopromotemarkettransparency,integrity

andefficiencybyprotectingandadvancingstakeholders'welfare

throughtheenforcemen

tofrules,

marketsurveillance,brokerinspectionsa

ndtheassessmentofm

arketdocumentsandfin

ancial

statements.

c.CreatecontentfortheDivision'spageon

theJSE'swebsite.Itis

importanttonotethaton

the

websitethereis

aComplaintLog,RMOD

contactinformation(fax

,emailandtollfreenum

ber)and

marketrules.

d.Establishpropercommunication,filing,d

ocumentaryandoperatingprocedurestopreserv

e

informationconf

identially.

PlansfortheF

uture

AsChairmano

ftheRMOConeoughttoacceptthatmyprognosisofwhatliesaheadfor

theCommitteeandtheRMOD

shouldbecons

ideredaccurateandcredible.OnthatscoreIwillreportthatthefuturelooksratherinterestingandexciting.

Thisviewispro

videdagainstthebackg

roundof:

1.

DevelopingnewJSERule

sasitrelatestoFinesandaComplaintManagem

entSystem.

2.

Thecurrentwork-in-progressoftheRMOD'sautom

atedmarketsurveillancesystem,whichiswithin

budget

andis,slatedtobecompletedbySeptemberofthisyear.

3.

UndertakingsbytheRMODofnotonlyenforcingm

arketrulesbutpromotin

gcompliance.

4.

ThecommitmentoftheRM

OCandtheRMODtofulfillitsobjectivesandsa

tisfytheexpectationsof

its

stakeholders,whichisasdocumentedinitsstrateg

icplan.

Chairman'sReportRegulatoryandMark

etOversightCom

mittee(RMOC)C

ontd

........................

......................................

...


Chairman


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JAMAICA

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AuditandFinanceCommitteeReport

TheJama

icaStockExchan

geandItsSubsidiaries

DuringtheyearunderreviewtheAuditandFinanceCommittee(theCommittee)oftheB

oardofDirectors(theBo

ard)ofthe

JamaicaStockExchange(theExchange

)assistedtheBoardindischargingitsoversightof:

1.

Th

eintegrityoftheFinancialStatementsoftheCompany

2.

TheadequacyoftheExchange'sinternalauditfunction,internalcontrolsandfinancialreportingsystemsand

pro

cedures

3.

TheExchange'scompliancewithlegalandregulatory

requirements.

4.

TheExchange'sInvestmentManagement

5.

Themember/dealers'compliancewiththeStockExchange'sRulesintermsof

policyandprocedures

Theroleofthe

Committeebecamethesubjectofadditionalfocu

sandattentionwiththedemutualizationoftheExchangein

April2008,and

thesubsequentissuea

ndlistingofpreference

shareswhichsubjected

theExchangetotherep

ortingand

complianceregimethatgovernsalllistedcompanies.Responsibilityformember/de

alers'compliancewith

theStock

Exchange'sRu

lesintermsofpolicyand

procedureswastransfer

redtotheRegulatoryandMarketOversightComm

ittee.The

AuditandFinanceCommitteehad15s

cheduledandspecialmeetingsduringtheyearw

ithsatisfactorylevelofa

ttendance

fromthemembershipcomprisedof:

GarthK

iddoe(Chair)

DianB

lack

EdMcKie

AllanL

ewis

JulianMair

Livings

toneMorrison

HilaryPhillips,Q.C.

TheManagementoftheExchangeisres

ponsibleforthepreparationandfairpresentationofthefinancialstatementsandother

reportsinacco

rdancewithpoliciesapp

rovedbytheBoard.Pe

riodicreportsbyManag

ementanddetaileddisc

ussionsat

Committeemeetingsconfirmedthecontinuedeffectivenessofinternalcontrols,theaccura

cyandcompletenessofaccounting

recordsandfinancialstatementsaswell

asthereasonablenessofaccountingestimates.

TheCommittee

alsoreceivedregularbriefingsfromtheinternal

auditorsregardingcomp

lianceissues,internalco

ntrolsand

otherinformationthathaveamaterialeffectontheCompany'sfinancialstatementsando

thercompliancerequirem

ents.The

Committee's

recommendationstothe

BoardaimedatstrengtheningtheCompany's,

investmentpolicies,internalaudit

functionandinternalcontrolsystems,we

reaccepted,implemente

dandarereviewedregularly.

Theprogrammeofworkforthefinancialyearconcludedwiththecoordinationoftheannual

audit.TheCommitteerev

iewedand

agreedthesco

peoftheannualauditw

iththeexternalauditors

andhasreviewedtheau

ditedfinancialstatemen

tswiththe

company'smanagementandexternalauditorspriortosubmissionofrecommendationtotheBoardforapprovaloft

heaudited

financialstatem

entsoftheGroupandthe

Company.

........................

......................................

...

Mr.GarthKiddo

e

Chairman


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2008ANNUALREPORT

18

Com

pensationCo

mmitteeRep

ort

TheJama

icaStockExchan

geandItsSubsidiaries

TheCompensa

tionCommitteeoftheJS

Eismadeupexclusively

ofnon-executivedirectorsandischairedbytheChairmanof

theBoardMr.C

urtisMartin.Othermemb

ersofthecommitteeare:

Mr.GarthKiddoe

Mr.DonovanPerkins

MissHilaryPhillipsQ.C.and

Mr.MarkCroskery

Thecommittee

'smandateistomake

recommendationsontheCompany'sframework

ofexecutiveremunera

tion.The

CommitteereviewsandapprovescorporategoalsinrelationtotheCEO'scompensation;e

valuatestheCEO'sperfo

rmancein

lightofthecom

pany'sgoalsandobjectivesandmakesrecomm

endationstotheBoardwithrespecttoexecutive

andnon-

executivecomp

ensation.

Directors'fee,whicharenormallypaid

tonon-ExecutiveMemb

ersoftheCompanytota

led$6.04M,thisfeehasnotbeen

increasedforth

e2008period.

--------------------

---------------------

Mr.CurtisMartin(Chairman)


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TheJSEGROUP

2008Management'sDiscussionandA

nalysis

TheManagement'sDiscussionandAn

alysis(MD&A)oftheJamaicaStockExchange

(JSE)Group's

(comprising

the

JamaicaStock

ExchangeandtheJama

icaCentralSecuritiesD

epository)financialcond

itionandresultsofitsoperationis

providedtoena

blestakeholderstoassessthefinancialhealth,materialchangesandtheresultsofouroperationfo

rtheyear

endedDecember31,2008.Itprovidesin

formationonourliquidity

andcapitalresourcesan

dgivesacomparativeex

amination

ofpreviousyea

r'sperformanceversus

thecurrentyearunderreview.TheMD&Ashou

ldbereadinconjunctionwithour

AuditedFinanc

ialResultsandmustbe

consideredascomplem

entaryinformationtotha

twhichisprovidedinth

eaudited

resultsandthenotestothefinancialstate

ments.

TheJSE,which

completeditsdemutualizationprocessin2007,floatedVariablePreferenceSharesinthemarketin

May2008

andwaslisted

onitsownExchangeon

June30,2008.Thissignaledanewerainthe

Exchange'soperationstartingthe

processofamo

vetowardsgreaterpublicownershipoftheJamaicaStockExchange.Theprocesshasledtonew

lineitems

suchasdividen

dpaymentsforbothpreferenceshareholdersandordinaryshareholders,

whicharereflectedinou

rfinancial

statements.

Forfurtherinformationandinkeepingw

iththeJSEListingRequirement,financialinform

ationisalsoavailableontheJSE

Website

.

www.ja

mstockex.com

ExecutiveS

ummaryofVision,

StrategiesandPrio

rities

OurVision:

T

obeamongtheleadings

tockexchangeandsecu

ritiesdepositorywithinth

eCaribbeanRegion;pro

vidingthe

bestoperatinge

lectronicallytradingandsettlementplatformsofferingawiderangeofprodu

ctsandservice.

OurPriorities:

Grow&

Innovate

Weplantocontinuetodevelopproductsandservicesinresponsetotheneedsof

themarketbyworkingcloselywith

market

playerstobroadenthe

servicesoffered,improveproductdeliveryand

marketparticipation.Throughthis

approa

ch,weintendtoaggressivelycompeteformarkets

hareofthesecuritiesmarket.

Integra

te/Network

Inordertoreapeconomiesofscale,tofurtherimproveo

urrevenuebaseandtoprovideforourclientsad

iversityof

securities,weintendtopursueth

eintegration/networking

oftheExchangeswithintheregion.

IncreaseListings

TheJSEseekstoencouragecompaniestolistontheJSE

MainMarketandsoonto

belaunchedJuniorMark

etinorder

toimprovetransactionsonthem

arket,providechoiceforinvestorsandultimately

increasethereturnonin

vestment

fortheGroup.ItisalsoourintentiontomarkettheJCSD,topromoteanintegratedandcompletesuiteofpro

ductsand

service

stothefinancialcommun

ity.

MarketConditionsandOutlook

RegionalandG

lobalCapitalMarketsh

aveexperiencedseverevolatilityin2008duetotheglobaleconomicc

risis.The

governmentandtheBankofJamaicahaverespondedbyeffectingmeasurestoaddress

theimpactonJamaica.Measures

suchastheincr

easeininterestrateshav

enegativelyaffectedthe

StockExchangeasinves

torsseektofindthehighestreturns

oninvestment.

Thefallininvestorconfid

enceinthemarketwasa

lsobroughtonbythedec

linegloballyinthecapital

markets.

Ournormalope

ratingrevenue,whichdo

esnotincludelargeone

offblocktransactionsduetoactivitiessuchasme

rgersand

acquisitions,arehighlydependentupon

thelevelofmarketactivitiesonourexchange.T

heseactivitiesincludevolumeand

valuetraded,numberoftransactions,marketcapitalizationofthe

securitiesandlistingontheExchange.WhiletheExchange


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STOCK

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2008ANNUALREPORT

20

benefittedinpa

rtthroughlistingsofmain

lypreferencesharesand

themajortransactionin

LascellesdeMercadoin

2008,this

typeofwindfallmaynotberepeatedinthenearfuture.Itisfairtosaythatthecontractionoftheeconomywillhavean

impacton

theperformanc

eofthemarketandthis

condition,ifnotimproved,mayresultindecline

inrevenuesandnetpr

ofitofthe

companyforthe

ensuingyear.

Thoughweface

thesechallengingeconomicandmarketconditio

nsinthenearterm,webelievethatgiventhemeasuresthat

arebeingtaken

byworldleadersincludin

gourowngovernment,thatinthemediumterm,th

emarketwillrebound.Inaddition,

webelievethatoverthelongterm,ex

changesanddepositorieswillbecomeevenmoreimportantinprovidin

ggreater

transparencyfo

rcapitalmarketactivities

,clearingandsettlementoftransactionsandwillb

eseenastheavenueof

choicefor

capitalformationandsustainablegrowth.

(TheMarketCo

nditionsandOutlooksectionabovecontainscertainforward-lookingstatements)

MarketOperations&Trading

Overthe250tradingdaysin2008,total

volumeofordinaryunits

tradedamountedto2.29billionvaluedat$24.38

billion.In

comparisonto2

007,thiswasanincreaseinvolumeof41.39millio

nor1.84%andadecreaseof$1.56billionor6.03%invalue

traded.Thetota

lnumberofordinarytran

sactionsfor2008was30

,312,adecreaseof8,284or21.46%whencompa

redtothe

previousyear.

Thetotalnumberofsharestradedinvolumeand

valuefortheyearwas2

.95billionunitsand$67.03billion,

respectively.Thisincludedtheblockmarketactivitywhichhadvolumetradedof657million

unitsatavalueof$42.65

billion.

In2008,marketcapitalizationdecreasedbyover$279.4billiono

r31.8%tocloseat$597.28billion.

2008Mana

gement'sDiscus

sionandAnalysis(Contd)


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Allthreeindice

sexperienceddeclines

in2008whencomparedtothe2007closingindices;theJSEIndexde

clinedby

27,816.03pointstocloseat80,152.03points,theAllJamaican

CompositeIndexdeclinedby32,787.93pointstocloseat

73,994.93pointsandtheJSESelectInde

xdeclinedby944.23pointstocloseat1,984.74po

ints.

Theperformanceofthemarketfor2008wasalsocapturedin

theadvance/declineratioandcapitalappreciation.The

advance/declineratioindicatedthatatotalof8stocksadvanceda

nd28declined,whilenostockregisteredunchang

edprices.

For2008,2com

paniesexperiencedpriceappreciationofmorethan100%fromthe8stocksthathadadvancedduringthe

year.Thetable

below,showsthetopadv

ancersanddeclinersfor2008.

TopAdvancersandDeclinersfor200

8

WINNERS

%

LOSERS

%

CiboneyLimited

400.0

0%

SaladaFoods

195.4

5%

PulseInvestm

ents

100.0

0%

PalaceAmus

ement

93.9

6%

PegasusHotel

59.6

2%

MobayIceCompany

51.5

2%

SeprodLimit

ed

26.7

8%

GuardianHo

ldingsLimited

10.3

4%

GleanerCom

pany

59.7

7%

CaribbeanC

ement

59.4

9%

MayberryIn

vestments

59.1

8%

PanJamInv

estments

50.0

0%

CarrerasLim

ited

49.28%

Desnoes&Geddes

42.14%

PanCaribbe

anFin.Services

40.00%

GraceKenne

dyLimited

39.16%

FirstJamaicaInvestments

39.02%

Hardware&

Lumber

37.50%

2008Mana

gement'sDiscus



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STOCK

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2008ANNUALREPORT

22

FiveYearGrap

hicallyRepresentation

ofkeymarketindicato

rs.

2008Mana

gement'sDiscus

sionandAnalysi

s(Contd)

*VolumesandValuest

radedincludeBlockTransactio

ns

2


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OverviewoftheBusiness

Wearelicense

dbytheFinancialServ

icesCommissiontooperateboththeStockEx

changeandtheJamaic

aCentral

SecuritiesDepository,thelatterbeinga

subsidiaryoftheJSE.W

eoperate,fullyelectron

ictradingandsettlementplatform.

Weboastthem

ostlistingsofequitysecu

ritieswithintheEnglishS

peakingCaribbean.

Wecur

rentlyhave45listedcom

paniescomprisedofthirty-nine(39)OrdinarySe

curities,nineteen(19)P

reference

SecuritiesandNine(9)USDd

enominatedsecurities.

TradingactivitiesareconcentratedintheOrd

inaryand

Prefere

nceShares.

TheJSEmaintainsthreemainindices:

(i)T

heJSEMarketIndex

(ii)TheJSEAllJamaicanC

omposite

(iii)

TheJSESelect

TheJSEMainIndexisamarket-

weightedindexcomprisingordinarysharesofalllistedcompanies.TheAllJamaican

Compo

siteIndexmeasurestheperformanceofJamaican

Companiesonly,whiletheJSESelectIndexmea

suresthe

perform

anceoftheJSE's15mo

stliquidsecurities.

TheJSEiscurrentlydeveloping

aJuniorMarketforsmallandmediumsizedcom

panieswhowishtoraise

between

$50millionand$500millionvia

themarketandwhosestatedcapitalwillnotexceed$500million.Itisa

nexciting

proposition,whichhasthefullsu

pportofthegovernmentofJamaica.ThesupportincludestheapprovalbyCabinetof

atotalo

ften(10)yearsholidayonstatutoryearningofthes

ecompanies.

2008Mana

gement'sDiscus

sionandAnalysi

s(Contd)


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2008ANNUALRE

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NetSurplus

TheNetSurplusoftheJSEGrou

pfortheyear2008of$2

07.7millionshowedanincreaseof$163.59millionoverthe

previou

syear.IncomefromOp

erationsof$470.3millio

nandInvestmentof$9

1.03millionwerehigherthanthe

previou

syearby128.4%and

160.8%respectively.

Surplu

s&EarningsPerShare

Surplus

derivedfromOperationsdistributablewas$173.59millionor$6.19perc

ommonsharefor2008compared

withsurplusderivedfromOperationdistributablefor2007of$18.95millionor$0.68perstockunitfor2007.The

Compa

nyissued27,500,000bonussharesin2008toreflectatotalnumberofsharesnowinissueof28,050,000.This

isconsistentwiththefinalproces

sofdemutualization,whichresultedintheconvers

ionofseatstoshares.

Duetothelargewindfallgainfro

mtheLascellesdeMercado'sacquisitionbyCLS

piritsin2008,theSurplu

sderived

fromOperationandtheconsequ

entearningspershare,th

eperformancefor2008outstrippedthatof2007.

Asimilar

perform

anceisnotexpectedfor

2009especiallyinlightofthedownturnintheeconomy,whichhasaffected

thestock

market.

YearEndedDe

cember31,2008Comp

aredwithYearEndedDecember31,2007

Revenue

O

Themajorearningsofth

eGroupisfromCessRe

venuebutwiththeJSEG

roupsstrategyofdiversificationof

itsrevenuestreams,Incomefromseminars,pu

blicationandotherservicessuchasmarketdatasaleare

growingincomesources

.

O

Thefollowinggraphsprovideavisualrepresen

tationofthecorebusinessoftheJSEGroup.W

ederive

incomeprimarilyfromtradingandclearing,listing

fees,investmentandotherrelatedactivities.

Reven

ueforthegroupfor2007and2008

$

200

8

$

2

007

Cess

260,273,35

7

110,259,983

FeeIncome

AnnualListing

36,084,82

3

32,726,700

InitialListing

3,651,50

0

1,676,700

SupplementaryListing

699,64

2

389,091

Members&Attorney

17,50

0

12,500

Transaction

111,428,42

2

17,947,404

Mainte

nance

1,400,65

0

1,459,515

TradeD

ata

2,974,77

9

2,961,478

Registr

ar

4,409,73

2

3,682,287

Trustee

1,144,95

2

MembershipFee

1,124,00

0

1,639,800

OtherO

peratingIncome

Region

alConference

13,255,00

0

11,628,000

OtherIncome

33,806,00

0

21,506,000

Investm

entIncome

91,027,00

0

34,908,000

TOTAL

561,297,35

7

240,797,458

2008Mana

gement'sDiscus


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TheGroupisorganizedintofourmainbusinesssegments,namely:

(a)

Exchangeoperationswhichdealwiththe

operationsandregulationoftheexchange.

(b)

DepositoryServiceswhichisinvolvedwiththetransferringandholdingofsecurities,shares,stocks

andbonds.

(c)

InvestmentOth

erIncomederivedfrominvestingactivitiesoftheG

roup.

(d)

Other-Trustee

custodianship,compan

ymanagementand

otheractivities.Trustee

Services

representthelatestadditiontothetypesofservicesoffered.We

believethisisagrowtha

reagiven

thesynergiestobederivedfromthede

positoryoperationandtheincreaseindemandfortrustee

serviceswithinJamaicaandtheCaribbeanregion.

Expend

iture

Expend

iturein2008of$302.3m

illionwashigherthanth

e$212.8millionof2007.Thisrepresenteda42%

increase

over20

07andwasdueprimarily

totheincreaseinstaffc

osts,advertisingandpro

motionandsecuritiesco

mmission

fees.In

flationrateof16.8%also

negativelyaffectedexpenditure.

O

StaffCosts

D

uring2008,theGroupim

plementedsomeoftherecommendationsmadeb

yaconsultingfirmhiredtoconduct

b

othaManpowerAuditan

daJobEvaluationandCompensationReviewAudit.Thissignificantlycontributedto

th

emovementinstaffcos

tsfrom$86.5min2007to$115.2Min2008representinganincreaseof33

.2%

.The

consultantsreviewalsohelpedinequippingexecut

ivestobetteraligncompe

nsationtoperformance.

2008Mana

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A

dvertising&Promotion

C

riticaltothegrowthandd

evelopmentoftheGroup

istheeducationofbothinvestorsandlistedcompaniesand

potentiallistedcompanies.Asadirectresultofours

trategytogrowtheseareasfromthesingledigitinv

olvement

ofinvestorsinthestock

market,theGroupisnowinanaggressivemo

detoimpartthemessa

geofthe

im

portanceofthecapitalm

arketandthebenefitstobederivedbymarketplay

ers.

S

ecuritiesCommissionFee

T

hisisafunctionofthelevelofCessRevenueearned.TheExchangeLevies0.393%ofthevalueofthe

tr

ansactionandtheFinancialServicesCommissio

nearns0.08%ofthisam

ount.In2008theCess

Revenue

w

as$260.3millioncompa

redto

$110.3millionin2007,withcorrespondingSecuritiesCommissionFeeof

$59,178millionand$24million.

O O

R

ationalizationofExpenditure

TheExchangecontinues

torelentlesslypursuea

courseofexpenserationalization;ensuringtha

tmonies

expendedprovidethehigh

estreturnoninvestment.

R

evenueReserves

TheGroupsRevenueReservesdecreasedin2008

to$272.3millionfrom$3

73.8in2007duetothedeclaration

ofandprovisionfordividendof$220million.Thisrepresentsthefirstdeclarationofdividendpa

ymentto

O

rdinaryShareholderssin

cetheinceptionoftheJamaicaStockExchange.Paymentwhichwillbe

madeto

shareholdersonrecordsa

satDecember22,representsa$7.84perstock

unitandispayableonJ

anuary2,

2009.In2008,theCompa

nyalsofinalizeditsDividendPolicythatallowstheGrouptopaydividend

annually

basedonthefollowingconditions:

T

heBoardofDirectorsof

theJamaicaStockExchangeintendstodistribute

asanannualdividendto

Ordinary

Stockholdersnotlessthan

20%oftheannualnetp

rofitoftheGroup,inrespecttoprofit,netofextra

-ordinary

item,oftheprioryear.The

dividendpaymentishoweversubjecttotheneeds

oftheCompanyforreinv

estments

ofprofittofacilitategrowth,expansionanddevelopm

ent.

TheDividendPolicyissubjecttoreview,fromtimeto

time,bytheCompany'sBoard.

OO

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27

FiveYearFinancialHighlights

FiveYearFinancialHighlightsshowsthe

steepriseinrevenuein2008afterconsecutivedeclinesinthetwoyearsp

rior.Net

ProfitAfterTaximprovedin2008over20

07andin2006whichreflectedthesignificantwriteoffoftheFixedIncome

Software

Development.R

efertochartandgraphsb

elow:

200

4

2005

2006

200

7

2008

Revenue

($000)

219,39

5

313,590

294,515

240,79

7

561,297

NetProfit

($000)

109,00

1

114,213

8,213

44,11

6

207,703

RiskManagement

TheGro

up'soverallriskmanagementstrategiesremainunchangedfrom2007.

Inv

estments

Management,throughtheG

roup'sInvestmentCommittee,continuestoreviewitsinvestmentportfoliosinline

with

theInvestmentsPolicyGuidelines,whichareals

oreviewedbytheAudit&

FinanceCommitteeoftheBoard.

The

InvestmentManagementCommitteereceivesan

dreviewsdataoncurren

tmarketconditionsandeconomic

outlook;reviewsvariousriskreportssubmittedincludingfairvalue,interestrisk,liquidityrisk,currencyriskand

marketrisk.Meetingsareheldataminimumonamonthlybasis.

The

Company'sprincipalbusinessactivitiesrelyontradingactivitiesintheMarketandbynatureares

ubjectto

variousrisksincludingsystemsdowntime,whichmay

resultinlossofproductiv

ity,revenueandconfidenceinthe

mar

ket.Consequently,there

areredundancies,data

protectionmeasures,s

ecuritymeasures,andp

oliciesin

plac

etoensureamoreresilientandsecuresystem,w

hichwouldhave100%availabilityduringbusinesshours.

ITrisksarealsominimizedthroughseparationofduties,requisitetraining,anda

dherencetoimplementedpolices,

internalaudits,a

continuing

review

and

upd

ate

ofpolicies

and

close

managemento

versight.

OtherO

perationalRiskMitigationStrategies

ITR

iskMitigationStrategies

2008Mana

gement'sDiscus


GDh

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The

JSEhasadoptedtheITG

overnanceFramework,Cobit4.1,whichensures

thatITandbusinessstrategiesare

alignedtoachievethefollowingobjectives:

U

seofITtoenabletheorganizationbyexploiting

opportunitiesandmaxim

izingbenefits;

R

esponsibleuseofITres

ources;

A

ppropriatemanagementofITrelatedrisks

GroupMediumandLongTermS

trategies

Duetothegloba

lfinancialmeltdown,the

negativeimpactoftheunregulatedschemesontheJamaicaneconomy,thecurrent

ighinterestrateregimeandthereduc

tionofinvestorconfidenceinthemarket,theg

roupisfacedwiththes

ignificant

hallengeofattractingnewentrantstoth

emarketandretainingc

urrentmarketplayers.Marketuncertaintieshavecreated

ewchallenges

butwithinthemnewopportunities.Webelievetha

tallourstakeholdershavecometoappreciatetheneedfor

reatermarketinformation,education,re

gulationandproductdiversification.Tothisend,th

efocuswillbeonthecontinuation

fthefollowinga

ctivities:

Increasedmarketeducationalac

tivitiesthroughcompaniesandinvestoroutreach,schoolprogrammeandtrainingof

marketintermediaries.

CreationofJuniorMarketfortheSmall&MediumSizedCo

mpanies.

Expans

ionandGrowthofRegistrarandTrusteeServices.

TheInte

grationthroughNetwork

ofourregionalexchange

s.

UtilizationofInformationTechnologytodrivethegrowth&developmentoftheGroup.

Theco

ntinuedfocusedthroug

htheJSE

independen

tRegulatoryandMark

etOversightDivisiono

fMarket

SurveillanceandMemberDeale

rInspection.Theimplem

entationoftheStateofth

eArtSurveillanceSystemin2009

willbea

welcomedadditiontotheslateoftoolsusedbyth

isdivision.Moreproduct

offeringthroughthesale

ofmarket

data,de

velopmentofandmainte

nanceofnewindicesand

derivativeproducts.

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29

GENERALMANAGER'SREPORT-

JSE

DMrs.M

arleneStreetForrest

GeneralManager

Jamaic

aStockExchange

espitetheturbulentglobalconditio

nsin2008,theJamaicaStock

Exchange(JSE)completedtheyearonaveryprofitable

notedue

primarilyto

theincomeearnedfrom

facilitatingthetransactionofthe

Lascelles/CLSpiritson

the

ExchangeandtheJamaica

Central

SecuritiesD

epository(JCSD).Thiswasthelargesttransactionofthis

natureinJamaicaandassuredtheExchang

eamorethan100%

increasein

Cessrevenuedespitemarketperformancew

hichwasotherwiseslug

gishand

whichwouldhavebe

en,otherthanforthistra

nsaction,worsethanthe

previous

year.Intheareaof

feeincome,theGroup

alsoperformedbetterthanwas

projectedduetoth

esametransaction,whichsaw

pledgefeeincreasing

significantlyoverthepreviousyear.TheTrusteeServiceLtd,anewsub

sidiaryof

theJCSDalsobenefittedfromtheLascelles/CLSpiritstransactionaswellasfrom

othernewcontractss

igned.

Thegeneraluncertaintiesintheeconomythatdogged2007werestillpresentin

2008.However,this

didnotdetertheStock

Exchangefromachievingsome

growth.Therewere

ninenew

listingson

theExchangecomprisedofsix

preferencesharesan

dthreeordinaryshareslistingswhichisthemostinover15

years.ThisincludedtheJamaicaStockExcha

ngePreferenceShare,w

hichwas

oversubscribed.

Withtheexceptionofourlargeblocktransactions,allmarketindicators

declined

over2007anditisunlikelythatwewillseeareboundingofthemarke

tin2009.

Weconsidereditopportuneandweutilizedthistimein2008todeveloponthe

internalcompetenciesandefficienciesin

theGroupthroughtraining,job

enlargement,improv

ementonpoliciesandproceduresandconcentrationon

newproductideasan

ddevelopment.

TheJuniorStockM

arketdevelopmentwas

givenaboostin2008

withthe

approvalbyCabinet

ofthetaxconcession.Wehavepursueddevelo

pmentof

the

Caribbean

Exc

hange

Network

though

we

have

encounteredsome

challenge.Wecontinuedtopursuemanyothe

rareasoffocusforwhich

progress

havebeenachieved.

TheExchangecontin

uestolistentoitsstakeholdersandhasinfactcom

mittedto

workingwithourlistedcompaniesandinvestorstobringaboutmarketgrowth

anddevelopment.A

saresult,wehavebe

enabletoaddresssom

eofthe

concernsraisedbyth

emandthroughquarterlyface-to-facemeetings,weintend

toresolvemattersthatwilllikelyaffectthecompaniesandthegrow

thofour

market.

EXTERNALFACTORS

Theglobaleconomic

crisis,thehighinterest

ratepolicytowardsthee

ndofthe

yearandtheeffecto

fthefallofmanyunregulatedschemeshavealln

egatively

impactedonthemar

ketin2009.Allthesefac

torshaveplayedonthepsycheof

investors,manyof

whom

havesoughta

moreconservativeapp

roachto

investmentsorcashe

dinontheirinvestments

inequitytomeetcashflo

wneeds.

Weexpectthatthese

conditionswillpersistsfo

rmostof2009.

(Continued)

OP

InhaWw

etra

Wwh

wh

Ma

Ou

Ex

ne

ST

Th

co

ma

or

fos

TH

Ou

imtha

on

Ev

me

Th

ma

JS

On

DE


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2008ANNUALRE

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30

GENERA

LMANAGER'SREPORT-JSE(Contd)

PPORTUNITE

S

spiteofthefra

gileeconomicenvironme

nt,therearepossibilities.Wehaveachievedmanyfirstsin2008.Manynew

products

avebeenlaunc

hedin2008,whichwewillcompletein2009,andm

anywhichwerestartedin2007havenowbeenco

mpleted.

Wesuccessfully

launchedinSeptember,

theInvestorEducationW

eek,whichwasacollabo

rativeeffortwithourregu

lator.The

eekofactivitiesmetourobjectivesofexposingnewinvestorstothemarket.TheStockMarketGame-thesimulatedelectronic

adingandportfoliomanagementgamea

imedatimprovingmarke

tunderstanding,wasalsolaunchedwithintheyear.

Wearecurrently

workingonthedevelopm

entofnewindices,deriv

ativetradingandotherex

pandedserviceswithintheGroup,

hichwebelievewillenhancethecapita

lmarketexperience.TheGrouphasseenanincreaseofover42%intheareasin

hichwehavediversifiedandweexpec

tthattheseareaswillfac

torinamoresignificant

wayinensuingyears.Thesaleof

arketDataisa

keyarea,inwhichwehavestartedtomakesomein-roadsandweplantofu

rtherpursuenextyear.

urmajorachievementsin2008areth

eresultsoftheinvestm

entandcommitmentwe

havemadeinensuringthatthe

xchangehasa

ndoffersleadingedgetechnologytoourstakeho

lders.TheGroupintendstocontinuetogrowanddevelop

ewproductasb

ysodoingwewillbeinapositiontoofferyoualow

ercostofprovidingexcellentservices.

TAYINGTHEC

OURSE

hisyear,desp

itethesignificantnetoperatingincomerealized

,hasbeenadifficultoneanditisunclearwhe

nmarket

onditionswillim

prove.Ourvisionremainsfocusedtobetheleadingexchangewithinthe

Caribbean,toimprovethecapital

arketbycreatingproductsthatwillenha

nceinvestmentexperien

ceandencouragenewc

ompaniestolistoneithertheMain

rtheJuniorExchange.Whiletheyearh

asbeenchallengingwecontinuetohavesuccessesinkeepingwithourprioritiesof

steringgrowth

anddevelopmentofthem

arketbyprovidinganeff

icientandtransparentma

rketplace.

HEMARKET

urtradingand

settlementplatformsre

mainedrobustin2008.

Weexperiencednosign

ificantdowntimeandh

aveeven

mproveduponthepreviousyear'sperformance.Despitethis,wec

ontinuetoexaminetheofferingswithinthemarket

toensure

attheplatform

sonwhichweoperateareonparwithourmostde

velopedcontemporaries

andwillprovidethehighestreturn

ninvestment.

veryefforttog

rapplewithanynegativeperceptioninthemark

etcontinues.ThiswillseetheExchangelookingatother

ethodssuchastheAveragePricetodeterminethemarketpriceforthecloseofday.

heExchangea

lsoconsidersitnecessarytogrowthemarketthro

ughtheadditionofnewm

emberdealersanddepe

ndenton

arketcondition

s,thiscouldberealizedin2009withtheadditionofatleastonenewmembe

rdealer.

SECORPORA

TEACTIVITIESANDNE

WINITIATIVES

ngoingActivities

UpgradesandEnhancementoftradingplatformforefficien

tmarketdelivery

Website

Enhancementincluding

StockMarketGamegearedatmarketeducationathighschool&tertiarylev

el

Stafftraining

Continu

edDevelopmentofintern

alprocessesforCXN

EPARTMENTALHIGHLIGHTS

MARKETINGACTIVITIES

Inkeeping

withtheorganization'sgoalsandobjectivesourMarketingDepartmentw

orkedassiduouslyorgan

izingand

hostingse

veraleventsandimplementedanumberofprojectsduringtheyeartoincreaseourcustomerbasean

dtohave

greaterin

teractionwithourstake

holders.InachievingtheseobjectivestheJSEwasengagedinthe

following

programm

es:

2A


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GENERA


(i)

HighSchoolEducationP

rogramme

ThisisgearedtowardseducatingHighSchoolStudentsontheStockMarketandhowtoinvestinthemarket.

Thisprogrammecontinuestomakestrideswithatotalof178HighSchools

visitingtheExchange,settingthe

stageforcontinuousmarke

teducation.

(ii)

NationalInvestorEducat

ionWeek

Therewere730studentsinattendanceattheNationalInvestorEducationWeekseminar,whichwa

sgeared

to

wardsstudents.

(iii)

Teacher'sOutreachProg

ramme:

TheJSEintroducedanOutreachProgrammeforteachersfromvariousschoolsacrosstheisland.Twelve

schoolsparticipatedintheprogramme.

(iv)

TheJSE'sPublicInvestorOutreachProgramme:

TherewerethreePublicIn

vestorEducationOutrea

chsessions.ThesewereheldinKingston,Santa

Cruzand

O

choRios.

(v)

FacetoFace:

TheJSEnotonlydialogue

dwithitsinvestorsandp

otentialinvestors,butals

o,theirkeystakeholders

,suchas

th

elistedcompanies,toen

surethatallchannelsof

communicationareopen

.Consequently,theJSE

engaged

th

elistedcompanieseachquarterin2008.

(vi)

BestPractices:

In

anefforttoassistplaye

rsintheindustrytoope

rateatinternationalstandardstheJSElauncheditsBest

PracticesAwardforListedCompaniesandStock

Brokeragesin2004.Herecompaniesareawardedfor

outstandingperformances

inseveralcategories,ra

ngingfrom:BestAnnual

ReporttoBestInvestorR

elations.

ThePSOJCorporateGove

rnanceawardwasadded

in2008.

(vii)

JSE'sCapitalMarket&In

vestmentConference:

Theyear2008sawtheJS

Econtinuingitsvisionofbringingpersonsnoton

lyfromacrosstheCaribbean,but

fromEuropeandNorthAmericatogether,toex

changeideasandnetw

orkinanefforttocontinuethe

developmentoftheCapitalMarket.TheJSEtooktheopportunitytohonourDr.RichardBernalforhis

outstandingcontributionto

Caricom.

(viii)

W

orkshops:

TheJSEin2008hostedas

eriesofworkshops.Theobjectiveoftheseworksh

opswastoexposestakeholdersin

th

emarkettointernationa

lbestpracticesinthecapitalmarket.Atotalof

six(6)workshopswere

heldand

coveredareassuchasLea

dership,DerivativesandCommunicatinginaCrisis.

Theeffortsthatwehavep

utintomarketoutreachprogrammesandworksh

opscontinuetoreaptremendous

benefits.Thisisevidencedfromthefactthatev

enthoughmostcompanieshadcontractedexp

enditure,

employersarenotaverse

totheiremployeesparticipatinginourworkshops.Wehaveflaggedthis

areafor

growthinthemediumtolon

gterm.

TheJSEthroughitsComm

unicationandMarketing

Departmentiscommitte

dtotheprocessofdialog

uingand

educatingalltheplayersin

themarkettoallowfora

lltooperateatinternatio

nalstandardsandwillco

ntinueits

efforttogrowthecapitalma

rketforfuturegeneration

s.

INTERNA

LAUDIT

Towardstheendoftheyearweou

tsourcedourinternalauditfunctionstoPriceWat

erhouseCoopersasweareofthe

viewthatthismovewouldfurtherstrengthenourinternalcontrolsandimproveonourp

rocedures.

INFORMA

TIONTECHNOLOGY

TheJSEc

ontinuestoimplementan

dutilizeinformationsyste

msthatsupportandenhanceitsstrategicobjectives.


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32

GENERA


(i)

In

frastructure

Since2001,theJSEand

itssubsidiary(TheJCSD)havebeenutilizinganelectronictrading,clearingand

se

ttlementplatform.Broke

rsandotherexternaluse

rsaccessthesystemsviaasecuredandrobustW

ideArea

Network(WAN).Additiona

lly,aspartofitsBusinessContinuitystrategy,th

eJSEimplementedah

otsiteto

provideredundancyforitscoresystems(Trading,C

learingandSettlement).AstheJSEcontinuestoe

xpandits

se

rvices,theinfrastructure

iscontinuouslyupgradedtotakeadvantageofthe

emergingtrendsinordertofoster

growththroughknowledge

andinnovation.Therefore,inourquesttostayabreastoftechnology,weco

ntinueto

upgradeoursystems.

(ii)

W

ebsite

TheJSE'sWebsiteisthe

'faceoftheExchange'.Thewebsitecontinuestobeaveryvaluableres

ourcefor

informationtoinvestors,fin

ancialanalysts,researchers,students,andother

visitorstothesite.Some

valuable

re

sourcesavailableonthe

sitearedailyandhistoricalstockmarketinform

ation,tradesheetsandcompany

newsviasubscription,ch

artingcapabilities,financialstatements,inform

ationonListedCompa

niesand

m

emberfirms,membershipsubscription,stockmar

ketgame,portfoliomana

ger,onlinestatementaccess,and

archivedtradesheetsfrom

1969.Statisticsfor2008

(seetablebelow)indica

tethattherewere608,00

0visitors

to

thesite,includingstude

ntsfromhighschoolswh

ohaveshowngreatinte

restsincethelaunchoftheStock

M

arketGame.

Month

Unique

visitors

Numberof

vis

its

Pages

Hits

Jan-08

19,528

53,349

1,615,049

3,902,102

Feb-08

18,620

50,987

1,570,555

3,583,721

Mar-08

19,209

51,139

1,331,124

2,775,975

Apr-08

18,515

50,451

1,356,414

3,051,036

May-08

17,919

49,147

1,428,524

3,005,102

Jun-08

18,983

50,904

1,692,433

4,227,561

Jul-08

18,007

49,351

2,007,007

3,797,926

Aug-08

15,480

42,084

1,150,217

2,535,721

Sep-08

16,519

46,128

1,394,698

2,767,522

Oct-08

20,007

55,272

1,928,302

4,448,560

Nov-08

18,759

53,029

1,712,669

3,298,657

Dec-08

19,324

56,159

1,558,011

2,900,959

Total

220,870

608,000

18,745,003

40,294,842

(iii)

DataServices

In

formationdissemination

iscrucialinkeepinginvestorsabreastofthe

activitiesontheStock

Market.

Consequently,theJSEen

suresthataccurateand

qualityinformationisma

deavailabletoitsclient'sthrough

so

urcessuchasBloombergwhoutilizesaMarketDataFeedprovidedbytheJSE.Otherproductof

thisdata

fe

edcanbeseenoncablestationsandwebsites

ofclientswhosubscrib

etothistechnology.In

2008we

expandedthisservicewhic

hwillbecome,infutureyears,akeysourceofincome.

(iv)

CaribbeanExchangesNe

twork

GiventheimpendingCarib

beanExchangesNetwo

rk(CXN),theJSE'stelecommunicationinfrastruc

turewas

upgradedtofacilitateseamless'any-to-any'connectivitybetweenthebrokersinJamaicaandthe

Hubsin

BarbadosandTrinidad.Ad

ditionally,thetrading,cle

aringandsettlementsystemswillbeupgradedto

facilitate

tradingandsettlingtradesdoneontheCXNmarket.

(v)

DevelopmentMarketSurveillanceSystem

W

iththeseparationofthe

commercialarmfromth

eRegulatoryarmofthe

organizationandthesubsequent

cr

eationoftheRegulatoryMarketandOversightDiv

ision(RMOD),theJSEh

asidentifiedtheneedtod

evelopa

M

arketSurveillanceSystem,whichwillundoub

tedlyassisttheefficiencyoftheRMOD

inp

rotecting

stakeholders'interest.

2A

CO

We

Sch

Uni

stu

org

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edu

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33

GENERA


HUMANR

ESOURCES

TheJamaicaStockExchangeisprivilegedtohaveaverydedicated,loyalandcommittedteam.Despitethech

allenges

thattheJSE/JCSDencounteredduringtheyear,wewereabletoovercomemostoftheseobstaclesthr

oughthe

exemplary

cooperationandresilien

tspiritofthestaffmembe

rs.Basedonthecompa

ny'sobjectivetohaveam

otivated

andprepa

redworkforce,amanpow

erauditwasconductedwhichresultedinsalaryre-classificationandjobevaluation

ofallpositionswithintheorganization.

Werecog

nizetheimportanceof

effectivelydevelopingourstaff,hencewefacilitatedandencouragede

mployee

developmentthroughtraininginC

orporateFinance,Secu

ritiesMarket,IFRS,Leadership,Derivatives,Re

alEstate

Investmen

tTrust(REIT)CommunicatinginaCrisisandalsointernalcross-training.

Additionally,theJSEcontinuesto

encouragestafftoadvancetheirprofessionalstatusthrough

ourEducationLoanFacility.

TheJSEinensuringthatwearea

'wellrounded'workforce

hadtheirfundayatSunsetBeachResort,MontegoBay.

Employee

swereplacedin'houses'namedafterpastCh

airmenoftheBoard(S

amms,BrownandLloy

d).The

camarade

rieandkeencompetitivenessoftheemployeeswasquiteintense,whichm

adeFunDay2008averyexciting

andmemo

rableone.

ORPORATES

OCIALRESPONSIBLIT

Y

emaintainedclosetieswithourcommunityandsupportedtheDenhamTownGoldenAgeandtheDenhamTownPrimary

hoolthroughourcorporatedonationsandstaffactivities.Weh

aveimprovedonoursch

olarshipsforbothstudentsofthe

iversityofthe

WestIndiesandUniversityofTechnologyandhavecontinuedtoprovide

workexperienceprogrammesfor

dentsfromUWI,UTECHandotherinstitutionsoflearning.Wea

realsocommittedtoUnitedWayandmanyotherc

haritable

ganizations.

ORECAST-20

09

th

09marksthe

Exchanges40Anniversaryinwhichweexpecttohavesomecelebratoryactivitiesgearedtoward

smarket

ucation.Itisa

lsoexpectedtobeachallengingyear.Buildingm

arketawarenessandthe

advantagesthatexistev

eninthe

eofanecono

micdownturnforbothin

vestorsandcurrentand

potentiallistedcompanieswillbethethrustofthe

Group's

ivitiesfor200

9.Wewillseeknewwa

ysofprovidingbetterservicetothemarketatalowercost.Wewillimproveonour

sponsetimeto

ourstakeholders.

eanticipateth

atwiththelaunchoftheJuniorMarketin2009,therewillbetremendousinterestfrommanyco

mpanies

sultinginafew

listings.Ourworkwillbethatofmarketeducationandassistancetopotentiallistedcompanies.

Anewexchangetradedfundmarket(ETF)

NewExchangeIndices

MarketDataMessagingServices

Listingo

fForeign/InternationalCompaniesthroughthepro

cessofAdvancedDepos

itReceipts

TheCar

ibbeanExchangeNetworkwhichreducestheexposuretoonlylocalstocks

OnlineA

ccessofClientAccounts

Many40

thAnniversaryActivities

eGrouppursuesseveralotherbusine

ssdevelopmentinitiative

s,whichinclude:

(Continued)

Iwis

able

and

time

Our

pers

man

bes

Ma

Ge


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GENERALMANAGER'SREPORT-JSE(Contd)

shtothankallourlistedcompanies,in

vestorsandothers,throughwhosecontinuedsupportandfeedbackwehavebeen

etocontinueourgrowthpath.Ourman

ysuccessfulmarketeducationprogrammessuchastheMarketAnalystCompetition

dBestPractic

eAwardsCompetitionwouldnotbepossiblewithoutthededi