Jun 2011 Financial News

TTSE Press Release - Amendment to TTSE Rule 227

Jun 02, 2011

The Trinidad and Tobago Stock Exchange Limited (the Exchange) wishes to advise the investing public that the Trinidad and Tobago Securities and Exchange Commission (the SEC) has approved an amendment to Trinidad and Tobago Stock Exchange Rule 227.

This amendment will result in the Volume Weighted Average Price (VWAP) being adopted as the method for determining the closing price for securities listed on the First Tier, Second Tier and Mutual Fund markets of the Exchange replacing the current Board Lot structure. This amendment will take effect on Monday 6th June, 2011.

An example of the two methods is presented below:

Closing Price comparison

Trades
First - 5,000@ $15.00
Second - 1,000@$15.75
Third - 500@$16.00

Board Lots Closing Price
$15.00

VWAP Closing Price
$15.19 (98,750/6,500)

This amendment will bring the Exchange in line with the Barbados Stock Exchange and the Jamaica Stock Exchange which also use the VWAP to determine their closing prices.

The amended Trinidad and Tobago Stock Exchange Rule 227 is presented below:

(1) The closing price of a share listed on the First Tier, Second Tier and Mutual Fund markets of the Exchange is the Volume Weighted Average Price, calculated as the total value of shares traded in the day divided by the total volume of shares traded in the same trading day.

(2) If a share listed on the markets referred to in (1) does not trade in a trading day, the closing price will be the same as the closing price of the previous day.

Please be guided accordingly.

BY ORDER OF
THE BOARD OF DIRECTORS OF
THE TRINIDAD AND TOBAGO STOCK EXCHANGE LIMITED
May 31, 2011


Source:
The Trinidad and Tobago Stock Exchange Limited
Thursday June 2, 2011