TTSE reports 'TOP success' through pandemic

THE Trinidad and Tobago Stock Exchange (TTSE) CEO Eva Mitchell has set out on a long course to raise awareness about the opportunities for local investors, small and medium enterprises (SME) and even school children, through recent tailor-made campaigns.

The TTSE recently hosted its Capital Market Conference, a one-day event at Hyatt Regency, Port of Spain, where a large number of industry specialists in finance, fintech, securities, policy, and other related topics, convened for a series of high-level panel discussions.

Ultimately, the recent innovations and campaigns have painted a positive forecast for the TTSE.

The organisation also recently celebrated its 42nd anniversary, giving Mitchell an opportunity to remind investors about the strength of its “fully integrated and automated exchange", serving as a pillar of economic development in the region.

Business Day spoke with Mitchell who shared her thoughts about the organisation’s steady growth over the past two years, particularly on its digital platform – TTSE Online Platform (TOP).

She also spoke about her projections for the upcoming year when the TTSE will release a new product for local investors, allowing them to trade using TT currency.

“Raising investor awareness is a strategic imperative for us,” Mitchell said. “The pandemic accelerated our efforts towards this and as a result, we began to see more investors (becoming) interested and trading on the local stock market.”

The TOP system was launched in 2020, at the beginning of the pandemic. She said the spike in new investors demonstrates that when people are given access and opportunity, they will take steps to participate in the equity markets, potentially benefiting from the strength of the companies listed and the opportunities the market can offer during market dips.

TOP also allows users direct access to market news and use the information to trade accordingly.

Prior to its launch, retail investors would have traded through a registered broker. But since 2020, users have had direct access to the platforms, allowing them to trade in real-time, using any mobile and computer devices. While trades are processed only during trading hours, the system remains online and accessible day and night.

“Although our trading volumes are down on a year-to-date basis thus far in 2023, what truly encourages and excites us is the surge in retail participation.”

The TTSE has seen a 50 per cent increase in trades executed by retail investors from the start of the pandemic to the end of 2022, growth which TTSE expects to see continue throughout the rest of 2023.

“Retail investors trade in smaller volumes, so you may not see the increase in activity by retail investors translating into increased volume of trading,” Mitchell noted.

She added, however, that the increase in retail investors is encouraging in itself. Retail investors accounted for about 30 per cent of the total market trades for September, which Mitchell said indicates that retailers are embracing the TOP platform and the ability to invest with a small amount of money.

“Taken together, we may be witnessing a shift towards more equitable investment participation,” she said.

“To further support this shift, we have accelerated our marketing activities with a focus on investor (awareness) campaigns through the strategic use of our digital and social media platforms and various strategies that increase our profile.”

The TTSE has engaged in a range of strategies to “empower and educate its investors,” Mitchell added, including some 22 webinars and outreach sessions and engaging in trade shows and expos.

She said these outreach programmes have been crafted primarily to cater to young and aspiring professionals who are interested in the local stock market. “When we look at the data, that’s (young professionals are) actually the demographic where we see interest coming from.

“We have also strategically partnered with other platform providers to bring awareness and education to schools in a digital way, so that it can appeal and attract the younger generation, who are all very tech savvy; (a generation of) no paper and who really want quick returns and quick results. The response has been encouraging," she said, “(And it’s) something that we are committed to continue.”

In addition to the increase in retail investors, the TTSE has observed a resurgence in many accounts that have been dormant before 2020.

Now that the TTSE has more retail investors on the exchange, another “strategic imperative” of the stock exchange is to acquire new listings. Mitchell said the TTSE has been seeking out and engaging SME companies that are eligible to be listed.

“We don’t provide advice,” Mitchell said. “However, we can present the value proposition regarding listing on the SME market, demonstrating to these potential companies that listing on the SME market is very attainable. And (we) outline the benefits”.

“At the exchange, we remain committed to expanding in this market, and the plan is (to increase) the listings.”

While there are only two SME companies currently listed, Mitchell said, “The plan is to grow this number as quickly as possible.

“(We have) various touch points along the way with the company at the early stage so that you develop a relationship and can offer the guidance needed so that we start off on the right footing– and that’s really important.”

Mitchell said the TTSE is also looking to expand its regional footprint by reaching outside markets.

Nearly 20 per cent of companies listed on the TTSE are cross-listed, representing about 21 per cent of its total market cap.

The intent, Mitchell noted, is to see the numbers grow both locally and regionally, for the rest of this year and next year.

At the recent conference, the TTSE highlighted an eagerly anticipated index-based product scheduled to launch next year, subject to regulatory approval, that will allow investors to use TT dollars for investments on the international market, and undoubtedly result in increased growth among local and regional investors and trade volumes.

“For us, it opens the door for more innovative offerings that are game-changing. What we plan to offer is the ability to trade in the performance of an international index such as the S&P 500 or the Nasdaq on the TT exchange in TT dollars.”

Mitchell became TTSE CEO in April 2021, having served as the manager of marketing operations for five years prior.