Caracas Stock Exchange

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Caracas Stock Exchange
Bolsa de Valores de Caracas
IBC
Websitewww.bolsadecaracas.com

The Caracas Stock Exchange or Bolsa de Valores de Caracas (BVC) is a stock exchange located in Caracas, Venezuela. Established in 1947, BVC merged with a competitor in 1974.

Operational and Legal Structure

BVC is a private exchange, providing operations for the purchase and authorized sale of

investors. BVC is also used as a location for trading in Bonds and other debt
instruments.

The legal structure prevailing in the Venezuelan capital market are the Securities Marketing Law (la Ley de Mercado de Capitales, enacted in 1975 and amended in 1998), Transaction Law (Ley de Caja de Valores), the Statutory Law of Public Credit (Ley Orgánica de Crédito Público), the Law of Organizations of Collective Investment and the norms dictated by the National Exchange Commission (Comisión Nacional de Valores, or CNV). Exchange activities are regulated and supervised by the National Exchange Commission, a public entity assigned to the Ministry of Finance, that authorizes internal procedures and regulations.

Board of directors

The

Board of Directors
of the Caracas Stock Exchange is presided over by Víctor Julio Flores. Additional members include Santiago Fernández Castro, Marcel Apeloig, Omar Delgado, José Gregorio Castro, Gabriel Osío, Jesús Tadeo Prato, Luis Oberto, Carlos Fernández and Mario Dickson, as well as by advisers Luis Andrés Guerrero and Rubén Manzur.

History and Performance

The origins of the Venezuelan stock market can be traced to the end of the

shareholders
, or puestos de bolsa, an amount that would be increased to 63 members in 1995.

Performance

In 1990, with an increase of 602%, the market was the second-best performing that year (after Poland).[1]

In April 2007, 60 companies were listed on the BVC, with less than half being traded regularly. BVC experienced a severe decline in traded volumes since the mid-1990s as a result of a declining

American Depositary Receipts (ADRs), corporate takeovers with a concomitant reduction in the number of shares available for trade and an increasing country risk that has frightened investors, particularly foreign investors. Daily trading volume decreased from the equivalent of $25 to $30 million in 1997 to less than $1 million by 2000.[2] The BVC survived during this period thanks to a growing trade of government debt securities. Stock prices, measured by the Indice Bursátil Caracas, were also depressed during the 1990s and have yet to recover to the highest ever levels experienced in 1991. According to the International Finance Corporation, the market value of the BVC was $7 billion in 2000, or just about 6 percent of GDP.[3]
In 2005 total transactions on the BVC totaled USD$438 million.

Electronic Exchange

BVC has been completely electronic since February 1992, when a modern electronic trading system developed by the Vancouver Stock Exchange entered operations. On July 2, 1999 another technological change was made when the SIBE (Sistema Integrado Bursátil Electrónico), electronic trading system was officially incorporated into the Caracas Stock Exchange.

See also

Notes

  1. ^ "The foresight saga". The Economist. 16 December 1999. Retrieved 22 December 2015.
  2. ^ Garay U., El Mercado Bursatil Venezolano: Evolucion y Perpectivas, Debates IESA 2001
  3. ^ Urbi Garay & Maximiliano Gonzalez, CEO and Director Turnover in Venezuela, Inter-American Development Bank

External links

  • ^ Official Page
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