Understanding the Central Depository
The TTCD is a company established by the Trinidad and Tobago Stock Exchange Limited to enable investors buying and selling securities on the Exchange to settle such transactions through a computerized book entry system.
A computerized book entry system is an accounting system which aids the change of ownership of securities electronically between buyers and sellers without the need for the exchange of the physical share certificates.
The TTCD is there for the benefit and protection of stock market investors. Many times there are instances where share certificates may be misplaced or lost or certificates may be invalid or fraudulent. When there is increased activity on the stock market the risk of these occurrences also increases.
The TTCD allows you, through your stockbroker (WISE) to deposit your securities at the TTCD for safe keeping. To facilitate trading, these securities will be registered in the name of the TTCD and held in vaults at the Central Bank.
You would receive a quarterly statement from your stockbroker and TTCD reflecting your securities holdings. On a monthly basis, you would receive a statement from your stockbroker if there were any financial transactions in your account.
You will therefore be in a position to reconcile your securities holdings on the statement from your stockbroker with that shown on the statement from the TTCD.
When your stockbroker sells shares on the Exchange on your behalf the TTCD will record the sale of the shares. This is done by reducing the number of shares held in your name (seller) and simultaneously increasing the balance of shares purchased in the buyer’s name.
Because this is now a computerized system matching buyers and sellers the settlement cycle for share transactions on the Exchange is reduced.
When shares are bought or sold on the floor of the Exchange you will have a certain number of days after the trade date (T) to deliver and pay for the securities sold and purchased. This is referred to as the settlement cycle.
Currently the settlement cycle is T+3 days. This means that you have three working days after the date on which your shares were bought or sold to settle (either you pay or receive an amount).
The TTCD is located at:
10th Floor, Nicholas Towers