May 26, 2020
Bank of Jamaica’s (BOJ’s) ongoing reform of the foreign exchange (FX) market is poised to take another significant step.
The long-awaited electronic FX Trading Platform (FXTP) is almost here.
The platform will facilitate real time electronic FX trading and observation of trades between all authorized FX traders – namely Deposit Taking Institutions (DTI’s), and cambios for the USD/JMD currency pair.
For greater transparency, a select list of large corporate clients involved in buying and selling FX has been provided by the relevant umbrella organizations (PSOJ, JMEA, SBA, MSME Alliance and the JCC) to be added to the system as observers. While they will be unable to take part, these observers will be able to see all daily trades in real time which will help them make informed decisions when approaching the market to buy or sell foreign exchange.
The intended implementation of the platform this year has been slightly delayed by the systemic impact and distraction of COVID-19, plus the need to fine-tune the system to accommodate specific internal compliance requirements of DTI’s. These requirements include limits on exactly how much FX they can trade with non –DTI’s, and so to facilitate seamless trading when the system is implemented, protocols will be built into the system for each cambio that a DTI may trade with.
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