By Javaughn Keyes
Broker-dealers are considered an important part of capital markets, as they allow investors to buy and sell securities easily.
With more money in the hands of Guyanese, stakeholders are pushing for an enabling environment for these firms in that country.
With oil, comes more money in the Guyanese economy, and more opportunities for investors.
As this trickles down, the dynamic becomes one where more citizens are looking at opportunities to build wealth.
As Guyana looks to strengthen its capital market, it’s argued that broker-dealers are a critical part of that eco-system.
“It is also the role of the broker-dealer to democratise access to wealth creation opportunities to every citizen of Guyana. The broker-dealer will also bring fresh capital from the region into Guyana as investors seek to participate in the fastest growing economy in the world,” said CEO of NCB Capital Markets, Angus Young, who was addressing the Jamaica Stocks Exchange’s 2nd Regional Investments and Capital Markets Conference in Guyana.
“In many countries, capital markets are seen as the domain of the wealthy elite, leaving most citizens disconnected from opportunities they provide. An economy that grows without the full participation of all, a wide base of its citizenry, is also one where inequalities will thrive. To truly democratise wealth, we need an inclusive capital market ecosystem where every citizen can participate and benefit,” Mr. Young added.
The NCB Capital Markets chief suggested that when capital markets are made easily accessibly to local businesses and citizens, the wider economy benefit.
“Ordinary citizens can invest in businesses, own shares and actively participate in the nation’s economic growth. Broker-dealers therefore have a responsibility to create investment products tailored for the range of investors, small to large scale, who have various risk appetites and degrees of capital to participate. The restricted availability of capital is often cited as one of the main factors inhibiting growth in the private sector. Broker-dealers are structured to tolerate more risk,” he noted.
The Guyana Securities Council (GSC) is improving its current framework, which would allow for the expansion of the broker-dealer market in the that country.
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