Both Sides of The Coin: The Story of The Central Bank of Barbados 1972-2017

68 of a Securities Exchange of Barbados. In April of that year, Dr. Bernard Seligman, a professor of Finance at Pace University, New York, was hired by the OAS to make recommendations to this end. By November, the Bank had approved proposals for the formation of an Exchange, under the auspices of the Barbados Chamber of Commerce. The Exchange was expected to deal, or facilitate trading, in listed securities. In July 1978, the Securities Exchange of Barbados Limited was registered; the Bank was represented on its Board by the governor and the manager of the new ECG Department. The Bank provided temporary accommodation and secretarial services for the entity and promised to subscribe to a debenture issue by the Exchange to help finance operating costs. This body did not get off the ground and in early 1980 it was decided to abandon it and form a new institution. During November 1980, the Bank agreed to establish the new Exchange, with the understanding that it would divest itself of that institution when it was fully established. Significant progress towards the goal of establishing a new stock exchange was achieved in 1983, with the passage in Parliament of the Securities Exchange Act. When the institution came into existence on June 12, 1987, the Bank allocated office space for it in the new headquarters building. 39 In 1987, the Securities Marketing Company, which had been established by the Bank in the previous year as provided for in the Securities Exchange Act, started operations. The company was intended to provide some depth to the market in securities during the early years of the Exchange and function as dealer, broker and investment adviser. 40 Late in 1981, influenced by a sharp rise in consumer spending, the Bank made a major effort to present investment in Government securities as an alternative. Accompanied by an intensive A specimen of the $5000 Savings Bond.