Importance of the Securities Market (Part 1)

The Trinidad and Tobago Securities and Exchange Commission (“TTSEC”) is an autonomous agency whose primary roles are the protection of investors and fostering the orderly growth and development of the local capital market. While securities regulation exists to protect investors and foster growth in the market, the ultimate goal of securities regulation is to attain efficient financial markets and thereby improve the allocation of resources in the economy.

There are several economic theories that stress that banks provide services to the economy that differ from those provided by securities markets, predicting that both the operation of banks and the functioning of securities markets have independent influences on economic development. Furthermore, it is stated that better functioning banks and securities markets exert robust, independent, and positive effects on economic activity2.

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