Overview
The South Pacific Stock Exchange (SPX) is Fiji's sole licensed securities exchange, operating as a private limited liability company with eight shareholders, governed by its Articles of Association and directed by a Board of Directors.Starting as a modest trading post in 1979 with just six listed securities, the SPX has grown significantly, currently boasting 19 entities on its official board. The exchange transitioned from a traditional open outcry system to a more advanced electronic trading platform in 2009, following a service level agreement with the National Stock Exchange of Australia (NSX). This upgrade allowed stockbrokers to conduct transactions remotely from their offices, enhancing market accessibility and efficiency. In December 2022, the SPX made history by listing its first Wholesale Corporate Bond.In 2016, SPX launched its cloud-based registry software, ShareSoft, through its subsidiary Central Share Registry Pte Limited (CSRL). This innovation automates previously cumbersome processes, improving operational efficiency and service delivery.
Functions of the SPX
The SPX serves several key functions
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Listing: Ensures an orderly and efficient market that provides investment opportunities to investors and a primary market for listed companies.
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Market (Trading & Research): Facilitates the trading of securities (shares and bonds) in the secondary market while disseminating essential information about listed entities and conducting market surveillance.
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Clearance, Settlements & Registry Services: Provides efficient facilities for clearing and settling trades along with registry services for clients.
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Public Awareness: Promotes the benefits and risks of prudent investment within the community.
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Front-line Regulation: Regulates listed entities and intermediaries in the stock market while establishing benchmarks for corporate governance and ethical standards.
The SPX plays a pivotal role in Fiji's financial ecosystem by providing companies with access to capital through public offerings. As it continues to enhance its infrastructure and expand its services, the exchange aims to attract more domestic and international investors. With ongoing initiatives focused on increasing market participation and improving regulatory frameworks, the SPX is well-positioned to contribute significantly to Fiji's economic growth in the coming years.
For more information about the South Pacific Stock Exchange, visit their official website at SPX.
Structure and Operations
The South Pacific Stock Exchange (SPX) operates under the 2015 Companies Act of Fiji, which ensures that all trading activities are conducted in a regulated and transparent manner. As a private limited liability company, SPX is owned by eight shareholders and is governed by a Board of Directors, who oversee its strategic direction and operational integrity.
Trading Structure
The exchange facilitates trading through two main sessions each business day, allowing brokers to enter, amend, or withdraw orders during these periods. The trading hours are structured to maintain price-time priority, with sessions running from 10:30 AM to 11:30 AM and again from 2:30 PM to 3:30 PM. This structured approach helps ensure an orderly market where trades can be executed efficiently.
Market Indices
The SPX maintains several indices to track the performance of listed securities. One of the most significant is the SPX Total Return Index (STRI), which reflects the total returns from price changes and dividends of all listed securities. This index is crucial for investors looking to gauge market performance over time and make informed investment decisions.
Future Prospects
The SPX is poised for growth, with expectations of increased listings from both state-owned enterprises and private-sector companies. Executive Director Gyanesh Rueben has emphasized the exchange's commitment to promoting good governance, transparency, accountability, and compliance. He noted that listing on the SPX provides companies with access to market-based funding for expansion while also facilitating capital-raising opportunities for investors. As Fiji's economy continues to recover and grow, the SPX's initiatives will play a vital role in fostering a robust capital market. By enhancing financial literacy among the public and expanding its range of listed entities, the SPX aims to attract both domestic and international investors, thereby contributing significantly to economic development in Fiji.
Recent Developments
In recent years, the South Pacific Stock Exchange (SPX) has placed a strong emphasis on increasing market participation through various initiatives designed to attract new listings. Executive Director Gyanesh Rueben has indicated that a surge in listings is anticipated, particularly from state-owned enterprises and private sector companies.
This growth is viewed as essential for enhancing liquidity and promoting increased trading activities on the exchange. The SPX is actively working to diversify its offerings and expand the number of entities listed on the equity market. This includes attracting additional issuers to the debt market, which is vital for creating a more robust and dynamic trading environment.
Rueben clarified that listing on the SPX does not equate to privatization, addressing a common misconception. He emphasized that while government policies will influence the timing of state-owned enterprise listings, there is a critical need for increased awareness regarding the benefits of being listed on the stock exchange.“Our platform will persist in offering investment access, capital-raising opportunities, and wealth creation through dependable, secure, regulated, and advanced trading platforms, ”Rueben stated in a recent interview with Asia Pacific Business Connections.
This commitment underscores the exchange's role in facilitating access to capital for businesses while providing investors with opportunities for wealth generation. One notable entity expected to join the SPX is Energy Fiji Limited, a statutory monopoly similar to other major entities like the Water Authority of Fiji and Fiji Airways. The listing of such entities is crucial as it allows them to secure market-based funding for business expansion and growth.
Once non-voting shares of Energy Fiji Limited are quoted on the SPX, shareholders will be able to sell their securities in a manner similar to other shares listed on the exchange.The SPX has made significant strides in facilitating increased involvement from local, institutional, retail, and foreign investors. The exchange is dedicated to promoting good governance, transparency, accountability, and compliance among its operations. By fostering an environment that encourages responsible corporate practices among listed entities, the SPX aims to build investor confidence and enhance overall market integrity.
To further support its strategic goals, the SPX has introduced various incentives for companies considering listing. These incentives include tax exemptions on gains arising from listing and reduced corporate tax rates for newly listed entities. Such measures are designed to create a vibrant stock market that attracts both domestic and international investors.With these initiatives in place, the SPX is well-positioned to play a crucial role in Fiji’s economic development by facilitating investment and promoting corporate growth. As more companies consider listing on the exchange, it is expected that this will lead to increased market capitalization and liquidity, ultimately benefiting all stakeholders involved in Fiji's financial ecosystem.
Economic Impact of the South Pacific Stock Exchange (SPX)
The South Pacific Stock Exchange (SPX) plays a pivotal role in Fiji's economic landscape by providing companies with access to capital through public offerings. This capability is particularly important for state-owned enterprises looking to secure market-based funding for expansion projects.
The SPX’s initiatives align with Fiji's broader economic development goals as the country seeks to recover from the challenges posed by the COVID-19 pandemic. According to recent reports, Fiji's economy demonstrated robust performance in 2024, reflecting strong recovery and renewed investor confidence, largely attributed to the activities of the SPX and its focus on increasing market participation (AFBC, 2024) .As Fiji's economy stabilizes and grows in 2024 and beyond, the SPX is expected to be a key player in facilitating investment and supporting corporate growth. The exchange has initiated various programs aimed at enhancing financial literacy among the public, including monthly segments on Fiji Television.
These efforts aim to engage more Fijians in investment opportunities, fostering a culture of informed investing that can contribute significantly to economic resilience (ADB, 2024) .The SPX has reported an increase in trading volumes and market capitalization, which are critical indicators of economic health. In 2024, the total annual trading value reached approximately FJD 36 million, showcasing a vibrant market environment that attracts both institutional and retail investors (BSP, 2024) .
This uptick in trading activity is essential not only for individual companies but also for the overall economy, as it reflects growing confidence among investors and businesses alike.Furthermore, the SPX has recognized the need for grassroots initiatives to promote financial literacy among ordinary Fijians. Chief Executive Sheraj Obeyeskere emphasized this commitment by announcing plans to visit at least 100 villages across Fiji to educate communities about the stock market’s role in the economy and how individuals can participate. “Awareness is important.
Right now, we feel that it has not been as robust as it can be,” Obeyeskere stated, highlighting the gap in public understanding of investment opportunities (Islands Business, 2024) .This grassroots outreach aligns with the SPX’s broader strategy to grow the local investor base and enhance the stock market’s contribution to Fiji’s economic development. By simplifying complex financial concepts and providing practical advice on investing, the SPX aims to empower individuals with knowledge about investment opportunities, enabling them to diversify their savings and build long-term wealth (IFC, 2024) .
As Fiji continues to recover economically, initiatives like those from the SPX are crucial for ensuring that all citizens can participate in and benefit from economic growth. The exchange's focus on good governance, transparency, and compliance further strengthens its position as a reliable platform for investment. With ongoing efforts to deepen its outreach and enhance financial education among Fijians, the SPX is set to play an increasingly vital role in shaping Fiji’s financial future.
Conclusion
The South Pacific Stock Exchange stands as a cornerstone of Fiji's financial system, promoting capital formation and investment opportunities while adhering to regulatory standards. As it moves forward with plans for increased listings and enhanced investor education, the SPX is well-positioned to contribute significantly to Fiji's economic growth in 2024 and beyond. Its commitment to transparency and good governance will be crucial in attracting both domestic and international investors, ultimately fostering a robust capital market that benefits all Fijians.
