Caribbean Exchanges Network (CXN) Framework and Infrastructure Presented By: Marlon Yarde December 5, 2013

WHAT IS THE CXN? The Caribbean Exchange Network (CXN) is a solution to allow investors, traders and brokers of all regional countries to have direct access to all financial products that are listed on regional securities exchanges

OBJECTIVES OF THE CXN Objectives: To provide an additional channel for encouraging and mobilizing domestic and regional savings To project a larger footprint for the interest of international investors To foster the growth of the domestic financial services sector To increase the overall efficiency of investment To help reduce corporate dependence on borrowing and improve the gearing of the Regional corporate sector

THE NETWORK Access will be provided via each Exchanges network. Members will not be required to make individual connections to each Exchange/Depository Contingency: Appropriate backup systems will be implemented to mitigate against total failure of one exchange or the entire CXN Telecommunication access– Should the TTSE network become inaccessible and there is still a connection to the other regions through the TTSE, the CXN will continue to operate (Example) Application Access: Each jurisdiction will continue to control its own market. Access will be granted based on the role of the individual in the respective brokerage house, registrar and institutional investor. System Administration & Maintenance Day to Day administration will be de-centralized Each system interface will be monitored by the technical team in the respective regions

What is the real impact for Brokers? Access to 100+ stocks in 3 markets Larger pool of investors If Trinidadian clients want to purchase stocks which are traded on Jamaican and/or Barbados Exchanges, then Brokers will have to open account with CSD in these countries Have with bank in local jurisdiction to facilitate settlement of CXN transactions via RTGS Monitor 3 markets for best execution of cross listed stocks Explain applicable fees and conditions to clients

Looking Forward Phase 2: Connectivity for other Regional Exchanges Integrated Platforms – One order book Workstations populated using consolidated data feeds Order routing through Fixed Gateway - automated order routing CXN Brokers CXN Brokers Order Entry Internet Port Automated Trading Market Data Feeds CH/Depositor y Local Trad er Browse Terminal Foreign-based non- resident or other International Trader Internet CXN Foreign Trader Order Routing Affirmations Foreign Broker

Thank You