TTSE announces shift to T+1 trade settlement by 2026

THE TT Stock Exchange (TTSE) will move to a one-day trade settlement cycle (T+1) by 2026, in a push to modernise market operations and align with global standards.

CEO Eva Mitchell announced this as she delivered opening remarks at the TT Stock Exchange’s 2025 Capital Markets and Investor Conference at the Hyatt Regency, Port of Spain, on October 24.

"As previously mentioned, in 2024, we reduced our settlement cycle from T+3 to T+2," Mitchell said.

"I am happy to announce today that the TTSE has submitted an application to our regulator to extend trading hours, a move that will support the transition to a T+1 settlement framework, which we aim to achieve in 2026."

Trade settlements – the time between the execution of a trade and the actual transfer of funds and securities – are defined by the "T+" standard, where "T" represents the trade date and the number indicates the days until completion.

Until last year, trades on the TTSE were settled on a T+3 basis, meaning transactions took three business days to finalise.

The current T+2 system shortens that to two days, while T+1 – already adopted by major exchanges such as the New York Stock Exchange – will reduce settlement time to a single day, improving liquidity and reducing counterparty risk.

Mitchell said the move would bring the TTSE into closer alignment with global best practices for the most advanced exchanges.

The transition to T+1 comes alongside a series of technology upgrades.

Mitchell revealed the TTSE would launch an updated depository portal in November, designed to streamline back-end operations and improve user access.

She described the updated portal as a "big step forward – faster processing, smarter systems and the ability to scale with the market."

"It also allows us to collect valuable data so we can better understand trends, spot opportunities and continue improving how we serve you."

The exchange also introduced a new digital assistant, TOBI – a chatbot developed to help investors and the public access information more easily.

"TOBI is friendly, easy to use and designed to help you get information quickly or ask questions about the market and our products and services whenever you need," Mitchell said.

Currently, approximately one-third of all trades on the TTSE are executed through its online trading platform, a figure Mitchell highlighted as evidence of growing investor adoption of digital tools.

In another major development, the TTSE has completed infrastructure for a new Spot Market to support trading in derivatives.

"(It’s) the first of its kind in the Caribbean," she said. "The draft rules are currently being finalised, and once approved by the TTSEC, it will open the door to an entirely new level of market activity."

Mitchell added that the exchange is also exploring the introduction of a "market maker" framework to improve liquidity and price stability.

"We’re looking at two possible approaches: a single capitalised and independent market-making entity with key stakeholders, or a model where companies make a market in their own shares through a qualified market maker," she said.

The TTSE has also advanced several initiatives to promote sustainable investment.

Mitchell said the exchange has partnered with IDB Invest to develop a Green Bond Guide to support the listing of sustainable and blue bonds.

"This initiative supports our country’s climate goals and creates a platform to finance real, impactful green and blue projects – the kind that strengthens our economy while protecting our future," she said.

In September, the TTSE joined the United Nations Sustainable Stock Exchanges (UNSSE) Initiative, giving it access to global frameworks for advancing sustainable development in capital markets.

Mitchell acknowledged that the local market remains subdued but urged investors to look to long-term growth.

She called on all participants – regulators, issuers, brokers and investors – to join the TTSE in this next phase of renewal.

"Now is the time to rebuild with purpose – to modernise our market, embrace innovation and strengthen the foundations of transparency and trust," Mitchell said.

"Together, we can shape a capital market that is resilient, inclusive and globally competitive."