TTSE Targets: New Listings, New Products, New Growth

January 30th, 2025

Already the largest stock market in the region by market capitalisation (US$15.9 billion), the Trinidad and Tobago Stock Exchange (TTSE) is modern, high-tech, and meets global benchmarks for operational efficiency. Looking ahead to 2025, it promises even greater proficiency and vibrancy, offering investors new opportunities.

Revolutionising T&T’s Stock Market

“We aim to be the premier stock exchange in the region in terms of innovation and activity with a target for substantial growth via new product offerings, increased retail investor participation and more listed companies – particularly small and medium-sized enterprises (SMEs),” TTSE CEO Eva Mitchell states. SMEs make up 80% of registered companies in Trinidad and Tobago (T&T). To develop the SME market, the TTSE has been working with strategic partners to identify SMEs that are ready to list their businesses.

“Strategically, the TTSE has decided to take an active approach to developing the local capital market. One bold move towards achieving this is through the development of a new product that will allow local investors to invest in international markets while using TT dollars via the TTSE,” she said. “This approach would help bolster the market’s liquidity and reduce the strain on the foreign exchange.”

In addition, “We plan to implement other capabilities such as short-selling and margin trading as we strive to attract a younger, sophisticated generation of investors. We also continue to look at digital enhancements such as the introduction of mobile platforms and AI, as this is one sure way of expanding our market base throughout the country and the Caribbean region,” Mitchell noted.

Pioneering Online Trading and Next-Day Settlements in T&T

The TTSE began offering online trading in 2020, and Mitchell said, “This is now the fastest growing segment of the market. Our goal is to fully digitalise the capital market. With the equity market already fully digitalised, next is a fully dematerialised private market, which means that the issuance and transfer of bonds will shift to a digital form.”

The TTSE intends to settle trades by the next day (T + 1); this new global standard came into effect in mid-2024. As of April 2024, the TTSE’s settlement period is T + 2. “We already have the infrastructure to move to this new standard; however, we need to give other players in the market time to adjust,” Mitchell explained.

She highlighted that the key challenges and risks facing the TTSE in the year ahead are market volatility resulting from recent regulatory changes. However, the TTSE has “focused its strategic initiatives to adapt to those changes and to maintain market stability.”

On T&T’s capital market outlook, Mitchell observed, “While trading activity from institutional investors has decreased, we are encouraged by the uptick in retail investor activity. Despite a general decline in stock market prices, companies listed on the TTSE have consistently increased their dividends, and many continue to post increased profits. Our local companies continue to pay the highest dividends regionally. This trend indicates resilience and potential for future growth, fostering a positive environment for retail investors and signalling stability in the local market.”

Article by: Kay Baldeosingh-Arjune