May 2015 Financial News

TTSE expecting new listings

May 06, 2015

Chairman of the T&T Stock Exchange (TTSE) Peter Clarke is optimistic about new listings in the coming year because there has been interest from potential issuers.

In the TTSE’s annual report, which has been release online, said there had been no new listing on the TTSE’s primary market last year and instead there was the delisting of BCB Holdings Limited and FNCU Venture Capital Company Limited.

“The highly anticipated IPO related to Phoenix Park Gas Processors Limited (PPGL) was targeted by the Government for early 2015 however a confirmed date is yet to be determined,” he said.

“The decline observed in trading volume and value for 2014 may continue into 2015 unless there are new equity issues, as the lack of investment alternatives cause investors to hold their positions.”

Clarke said 2014 was a year of diversification, expansion, growth and human capital development for the TTSE as its core business areas were aligned and supported by increased focus human capital and on corporate governance. He said compliance and risk management structures have been reviewed for further expansion, providing the foundation for the TTSE to “continue delivering on its strategy, leveraging its range of products and services and further diversifying its offering through new product development while ensuring its regulatory functions keep pace with a changing landscape.

He said revenues fell marginally by 5.58 per cent to $14.07 million. due to a downward trend in stock market activity which impacted on secondary market trading fee income.

“On the expense side, our operating expenses rose by 11.36 per cent, reflective of the strategic initiatives undertaken throughout the year; and this combined with a reduced revenue position, resulted in a decline in profit after tax by 38.56 per cent to $2.74 million,” he said.

Clarke said the TTSE’s our subsidiary company, the T&T Central Depository Limited (TTCD) expanded its service offering to the financial market with the launch of its Euroclear business line. He said this development will “strategically expanded the TTCD’s core custody offerings from local and regional listed securities to international securities and USD repurchase agreements (repo).” In addition, he said, it provides the TTSE with revenue diversification, increasing the stability of its revenue stream.

He said the TTSE plans to achieve further sustainable growth by increasing and diversifying its listings on all market tiers. 

Clarke added: “This will require us to further collaborate with our key stakeholders and strategic partners including Government, member firms and other investment professionals.

“Legislation and regulation amendments to the Securities Act 2012 (the Act) were approved by Parliament in 2014. A review of the rules of the Exchange and of the TTCD was undertaken for the purpose of alignment with the Act and amended rules will be finalised after review and approval by our regulator.

“The United States Foreign Account Tax Compliance Act (Fatca) was introduced by the US Government with the objective of ensuring that US persons with financial assets outside of the US pay the relevant taxes on their investments and foreign financial institutions (FFIs) are required to determine the US tax status of its account holders. 

“The TTCD registered as an FFI in 2014. To ensure that the organisation remains Fatca compliant, the TTCD has been implementing the necessary systems to allow for retention of the required client information in order to facilitate reporting.

Clarke said an improved financial performance is anticipated this year as the TTSE builds upon its 2014 strategic investments. 

“We will continue to actively promote equity issuance in the market. Our diversification strategy should bring greater stability to our top line revenues. Challenges in finding investment opportunities and increased regulation will continue to be defining factors in our financial markets,” he said.

Source:
Trinidad Guardian
Wednesday May 6, 2015

http://www.guardian.co.tt/business/2015-05-06/ttse-expecting-new-listings