In 2018, the volume traded in the Panamanian Stock Exchange totaled $6.100 million, 15% more than the data reported in 2017, mainly because of the behavior of the primary market.
The increase in the volume traded in 2018 represents a recovery in the stock market, since in 2017 the stock market activity of the Panama Stock Exchange (BVP) reported a 28% decrease compared to 2016.
Using a web platform with key information from all of the markets in the region and the Dominican Republic, Central American stock exchanges propose reviving the plan to create a truly integrated regional market.
Once again authorities at stock exchanges in Central American countries and the Dominican Republic have put back on the table the plan to integrate the stock markets in each each country into a single regional one.
The Ministry of Finance is considering issuing up to $500 million in debt securities in the Chinese securities market, in order to take advantage of the lower borrowing costs offered by the Asian market.
The advantage is that, according to Minister Dulcidio De la Guardia, " ... after changing the money to dollars, it is possible that the country could reduce by a quarter or half a percentage point the rate it would need to pay for a bond in dollars with equivalent maturity."
The volume traded on the stock market in 2017 amounted to $5.323 billion, 28% less than the amount traded during the previous year.
Despite the decrease registered, authorities and participants of the stock market see the performance in 2017 as positive, and attribute the decline to the fact that in 2016 there were extraordinary movements, caused by the participation of the government and some private sector companies.
Four months after the operations of the two markets were integrated, five brokerage firms are already carrying out transactions and four other are waiting for their operating permit to be processed.
The attractiveness of the Panamanian stock market for both investors and companies raising money explains the great interest that the brokerage firms in El Salvador have shown in being part of the platform that allows them to operate remotely in the Panamanian market.
The first stock market transaction between the two markets has been completed, under the remote operator scheme.
From a statement issued by the Stock Exchange of Panama:
The beginning of cross-border transactions between the El Salvador and Panama Stock Exchanges took place on Friday, May 19, 2017, when the first stock exchange transaction took place between the two markets under the Remote Operator scheme, which allows Stock Brokers from both countries to take part in the different operations in the two markets without the need for an intermediary.
The Superintendency of the Securities Market will start asking for a risk rating in all applications for registration of securities.
From a statement issued by the Superintendence of the Securities Market:
May 10, 2017. - The Superintendence of the Securities Market (SMV) will require a risk rating as part of the documents that must be included in any application for registration of securities, in accordance with the provisions of Agreement 3-2017 of April 5, 2017, "Amending Agreement 2-2010 of April 16, 2010 on the Procedure for the Submission of Applications for Securities Registration and for Termination of Registration to the SMV and other provisions" published in the Official Newspaper La Gaceta No. 28259-A of April 17, 2017.
The Superintendency of Securities may provide access to bank information when investigations because of breaches are carried out in the stock market.
The decree took effect on December 17, 2016, and states that when the Superintendency of Securities (SMV) requires information on bank depositors and liabilities, this will be requested through the Superintendency of Banksof Panama. In addition, the two regulators signed a memorandum of understandingto facilitate exchange of information.
Over $7,3 billion was traded on the Panamanian stock market over the past year, 40% more than the $5.246 billion traded in 2015.
In 2016 negotiations on the primary market went up by 15.7% compared to the previous year, settling at $3.934 billion, above the $3.401 million in 2015.Transactions in the secondary market grew by 44%, going from $1.51248 billion to $2.18289 billion.
The National Assembly has passed a law which creates the National Securities Commission and regulates securities and OTC negotiations.
From a statement issued by the National Assembly of Panama:
The full National Assembly approved on its third reading Bill No. 360 amending the only text of Decree Law 1 of 1999, which created the National Commission on Securities and which regulates the Stock Market in the Republic of Panama.
The new regulation under public consultation states that all issues of securities registered with the Superintendency of Securities Market must have a risk rating.
The aim of the new regulations proposed by the Superintendency of Securities (SMV) is to provide more information on the emissions market for investors, so that they can"...
Citing several irregularities during the intervention process, the Securities regulator decided to order the liquidation of the brokerage firm Panama Wall Street.
From this moment forward, investors and creditors of Panama Wall Street S.A. must present themselves at the company's premises to declare the amounts owed to them and start due process with the authorities who will lead the settlement process.
Companies registered with the Superintendency of Securities and Exchange in Panama will have to comply with standards of good corporate governance.
The Superintendency of Securities (SMV) of Panama announced the topics that it has been working on with the Institute of Corporate Governance Panama (IGCP), to prepare companies selling products on the stock market to comply with the upcoming implementation of the Good Corporate Government, reported Critica.com.pa.
The Superintendency of Securities could be adjusting the rules on issues such as brokerage fees for services or the requirement to present a risk rating to issue securities.
Presenting a risk rating for both private and state titles, the ability to raise fees paid by brokerage companies on the market, or the newly required ones aimed at meeting the requirements to combat money laundering could be some of the changes in the rules governing the stock market in Panama.
Analysis of the current state of the Panamanian capital market, including the confidence threatened by various financial setbacks, and the opportunities to make the much needed structural changes.
Martesfinanciero.com reviews three episodes which have shocked the Panamanian financial market in recent weeks: "These events have shaken the financial system and put market players on alert.