Protecting the rights of investors and minimizing systemic risk is part of the objectives pursued by the new law on the stock market in the Dominican Republic.
The Executive Power promulgated Law 249-17 that modifies the previous 19-00 of the Dominican securities market.
The Superintendent of Securities, Gabriel Castro González, "...
Ongoing Emissions Report, Daily Report Movements, Movements and Historical Report, there are three new reports from the Superintendency of Securities.
An article on Crhoy.com reports that "... From Monday, the Superintendent of Financial Institutions (SUGEF) will have online information about the movements of the balances of emissions registered in the National Registry of Securities and Intermediaries, namely debt issues (bonds), equities and securities for participation of closed-end funds. "
Between January and September $4.25 billion were traded in the stock market, up from the $3.093 billion traded in the same period in 2013.
The months reporting the largest amounts were March, with $697.5 million and July, with $578.6 million, while the months reporting lower volumes were January at $317.9 million and February at $335.4 million.
In the first six months of the year $3.250 million were traded, which is an increase of 33% compared to the amount traded in the same period in 2013.
The primary market, where fist time issues of shares and debt securities are recorded, had the most activity, with trading of $414.61 million between January and July 2014.
Laestrella.com.pa reports that "...In the case of the primary market in the month of July 2015, background shares reached $20.72 million, preferred shares $2.59 million, bonds $154.73 million and mortgage bonds $75 million."
In the first three months of the year $1.350 million worth of securities were traded, up from $1.057 million traded in the same period in 2013.
Increased purchases of securities in the first quarter of 2014 "were made by BG Valores ($230.09 million), Prival Securities ($228.88 million), Banco Nacional de Panama ($195.62 million), MMG Bank Corporation ($142 55 million) and Citivalores ($126.06 million) ...
The market is now in its first stage of operations with transactions of government bonds and state owned institutions, which will be followed by corporate bonds.
The new link between the Central Latinoamericana de Valores Latin Clear Central and the largest global custodian of shares Euroclear allows emissions on the Panama Stock Exchange to be purchased by investors in 46 countries around the world.
Direct access to trading platforms and the rise from 5% to 8% of the tax on mutual funds are some of the changes proposed by the bill.
The draft of the new bill, proposed by the National Council for Market Development, will be subject to public consultation with the stock market and financial sector from now until January 31, 2014.
The new law, which would replace the current Regulatory Securities Market Act contemplates major changes, such as increasing the tax rate paid by mutual funds to 8%, a greater integration with the international market and better trading platforms with direct access for investors.
The Road Maintenance Fund of El Salvador launched a second sale of securities worth $50 million on the stock exchange.
In May the Road Maintenance Fund (FOVIAL) had already raised $50 million and it is now looking for more funds with a new securitization this week.
This fund, just like the first one, will be placed in two tranches, the first "... for a period of 14 years, for $35 million, with a grace period of six months before starting the repayment of the principal along with quarterly interest payments" reported Prensagrafica.com.
The Road Maintenance Fund will be selling bonds worth $50 million on the stock market in order to finance the construction of works to facilitate traffic in the metropolitan area of San Salvador.
The Road Maintenance Fund (FOVIAL) has chosen the securitization mechanism to sell securities to investors from different backgrounds, under an agreement that will be returned in the medium term with an additional gain.
If Panama does not join Annex A of the Multilateral Memorandum of Understanding of the International Organization of Securities Commissions, the consequences could be very serious in the medium and long term.
So said the secretary general of the International Organization of Securities Commissions (IOSCO), David Wright, who did not specify the penalties that could be faced by the country, but said "the damage would register every year, because it is a matter of trust between Panama and almost all members of the IOSCO, as the most powerful countries are interested in closing all doors to illegal activities. "
Although the Superintendent of the Stock Exchange in Panama has lifted the suspension of the brokerage firm Financial Pacific the Stock Exchange has not approved its integration.
According to the president of the board of the Stock Exchange, Felipe Chapman, "there are still many unanswered questions", relating to this organization. Questions such as "How was the loss recovered, what were the terms of the sale, who are the buyers and what is their interest in the business?," said the official.
Their number has doubled in the past six years, and there are currently 75 companies managing a total of more than $18 billion in assets.
Capital.com reports that "In 2000 only 20 brokerage houses operated in the country, by 2007 the number had climbed to 40 and as of August this year the figure reached 75."
Advances in the rules governing the sector, have attracted the investment of foreign stock brokers who have relocated or want to expand their services in Central America.
The current rates for investment in dollars available in Costa Rica represent attractive options- which are scarce right now, compared to the international markets.
From a report by Aldesa on its blog Pulso Bursátil:
Interest rates internationally in dollars are still at historic lows and the market consensus suggests that this Thursday, the U.S. Federal Reserve will accompany the statements from its meeting of the Open Market Committee with an announcement of a new monetary stimulus.
The bill for the Efficient Management of Public Finances contains reforms that would make the system inviable.
The law intends to make the cost of supervising the securities market be fully covered by its participants (Stock Market, Ceval, Brokerage Houses and Mutual Funds), who currently contribute 20%.
José Rafael Brenes, head of the National Stock Exchange in Costa Rica, argues that this provision would be lethal to the system, since the cost of monitoring would represent 53% of market participant’s profits, which currently represents 10%.