History of the Trinidad and Tobago Central Depository (TTCD)
The Trinidad and Tobago Central Depository Limited (TTCD) was incorporated as a subsidiary of the Trinidad and Tobago Stock Exchange Limited (TTSE) on September 30th, 1998 and commenced operations on January 21st, 2003.
The TTCD was established by the TTSE to facilitate the safekeeping of certificates and to enable investors buying and selling shares on the TTSE to settle such transactions through a computerized system.
The TTCD consists of two Departments (Central Securities Depository and Registrar Department):
The Central Securities Depository (CSD) allows shareholders to deposit their shares into a TTCD Broker account, represented by physical certificates, through a stockbroker, for safe keeping. These shares are registered in the name of the TTCD but are held on behalf of shareholders, so the shareholders maintain all their entitlements. The Depository provides efficient, safe and prompt clearing and settlement of securities transactions. Shareholders must open a TTCD Broker account with a Stockbroker.
The benefits of opening a TTCD Broker account and depositing your certificates are as follows:
- Shares can be traded (Buy/Sell) on the Stock Exchange.
- Ownership records are held in safekeeping electronically and there is no need to worry about lost certificates.
- Quick processing of transfers utilizing electronic records.
- Monitor account activities electronically.
- Shares can be used for collateral for credit obligations at various financial institutions
- Dividend payments can be paid directly into your bank account
Types of Transactions executed by the Central Securities Depository
Physical certificates deposited through a stockbroker are recorded as an electronic entry in a TTCD Broker account. To deposit your share certificates, visit a stockbroker with your certificates and two (2) valid forms of identification. An account will be created with the TTCD and the amount of shares reflected on your physical certificate will be deposited into your account.
Intra/Inter Member Movements
An intra-member movement is the movement of shares from one account, to another in the same name, with the same stockbroker. An inter-member movement is the movement of shares from one account with one stockbroker, to an account, in the same name, with another stockbroker.
The holding of shares at the TTCD, offered as collateral, for financial institutions for credit/loan facilities.
Settlement of Trades
Automatic settlement of shares traded on the TTSE is completed three (3) business days after the trade day (T+3).
Automatic settlement of Corporate Bonds traded on the TTSE is completed two (2) business days after the trade
Cross Border Transfers
Shares can be transferred between the Depositories in Trinidad, Jamaica, Barbados or Eastern Caribbean for trading or safe-keeping purposes.
TTCD acts as a third party custodian ensuring that the repo buyers’ interests are protected in these transactions.
TTCD provides local custody services to the market in relation to foreign securities owned locally.
The Registrar Department was introduced in 2006 by the TTCD and is responsible for remitting dividend payments and maintaining shareholder records for Listed Companies.
Currently, the TTCD Registrar Department provides registrar services to twenty-four (24) locally Listed Companies, ten (10) Bonds and is the Sub-Registrar for two (2) Cross Listed Companies domiciled outside of Trinidad and Tobago. As well, the TTCD provides Registrar Services for Private Companies.
Types of Transactions executed by the Registrar Department:
- Addressing inquiries from Shareholders, Brokers and Financial Institutions
- Processing of stock transfers
- Updating of Name / Address changes
- Processing of Confirmation of Holdings / Estate Inquiries
- Provision of reports to Listed Companies
- Executing Corporate Actions – A corporate action is an event initiated by a Public Listed Company that affects the securities issued by the company. For example, Dividends, Bonus Issues, Rights Issues, etc.
The TTCD is committed to the development of the securities market of Trinidad and Tobago and our goal is to provide shareholders with quality service and ease of access their information.