An intermediary is a person or organisation, which provides services related to financial securities to investors such as a broker, dealer or custodian. These services include facilitating trading on behalf of investors and providing investment advice. Intermediaries dealing in securities must be licensed by the Eastern Caribbean Securities Regulatory Commission (ECSRC).
The Eastern Caribbean Central Bank acts as Fiscal Agent to Governments. In this role, the ECCB assists the Governments by facilitating the operations of the RGSM, serving as secretariat to the RDCC and providing advice to the Governments.
Government securities are financial instruments including treasury bills, notes and bonds that are issued by a sovereign and sold to the public. Backed by the full faith and credit of the issuing Government, these instruments are usually considered safe investments.
Treasury Bills are short-term instruments issued with a term of one year or less. They are sold at a discount from face value (par) and do not pay interest before maturity. The difference between the purchase price of the bill and the amount that is paid at maturity (par), or when the bill is sold prior to maturity, is the interest earned on the bill.
Treasury Notes and Bonds bear a stated interest rate, and the owner receives periodic, typically semi-annual income. Treasury notes have a term of more than one year but less than ten. Treasury bonds are long-term instruments issued with a term of more than 10 years.
The eight ECCB member countries (Anguilla, Antigua and Barbuda, Dominica, Grenada, Montserrat, Saint Lucia, St Vincent and the Grenadines and St Kitts and Nevis) have established a regional market for Government Securities, with the assistance of the Eastern Caribbean Central Bank.
The regional market allows all member governments to issue their securities throughout the member countries and beyond, allowing residents and non-residents to buy and sell the securities of their choice. This initiative will enhance the investment options available to investors by enabling investment opportunities beyond the domestic/home market, incorporating the regional market as well.