Bolsa de Valores Colombia SA operates as a stock exchange. The Company provides trading platforms for equity, fixed income securities and derivatives trading; central clearing and settlement services; as well as regional coverage from their corporate offices located in Bogota, Colombia.
This document may include speculation and projections based on assumptions outside the control of BCS, bvc and Grupo BVL that could result in unexpected or differing outcomes than expected or projected. These assumptions could result in results which differ materially from what had been expected or projected.
History
Colombia’s stock market had a slow start to 2018: its key index, COLCAP, fell one percent to 2,016 points while market capitalization of listed companies increased two percent. These encouraging signs show that Colombia’s economy has stabilised and begun growing at an appropriate pace; nonetheless, economic conditions continue to pose challenges across emerging markets.
Colombia’s government has made efforts to make life easier for international financiers. One such effort involves creating an agreement allowing foreign investors to declare their incomes as tax credits in Colombia and have these transferred back home, so as to avoid double taxation of their earnings.
Colombian stock exchange also recently introduced a crowdfunding platform known as A2censo that enables people to invest small amounts to support emerging small and medium enterprises (SMEs). Utilizing blockchain technology for greater efficiency, transparency and security features it also facilitates trading on Colombian stock market through mobile devices.
Functions
The Stock Market or «Value Exchange», commonly referred to as ‘The Market,» is an environment in which investors buy and sell company shares or bonds; in practice though it encompasses much more, including financial instruments. According to Mexican company Monex that specializes in securities markets (Monex), financial markets provide investors with a platform where they can purchase or sell company stocks and bonds at market exchanges such as The bourse de Valeurs or «Value Exchange».
BVC is the leader of Colombia’s capital market infrastructure with presence across all value chain segments: Pre-trading (listing services and issuances), Trading (access, electronic and OTC), Post-trading (clearing, settlement, custody management services and securities management), Information (market data procurement), Core banking and capital market system implementation services as well as digital solutions. BVC was previously known as Servicios Integrados Bursatiles S.A. until June 2001 when its name changed to Bolsa de Valores de Colombia S.A.
The company operates through four segments: bvc, Deceval, CRCC and Precia. The bvc segment engages in organizing, legislating, administering and operating securities trading establishments and electronic systems that facilitate trades of all classes of assets and securities on stock market transactions; Deceval provides custodial, clearing and administration services as well as securities management for credit securities, equities and financial instruments issued either domestically or internationally, traded or registered; while Precia serves domestically issued, traded or registered financial instruments both domestically or internationally issued, traded or registered or issued domestically or internationally issued from overseas issuers or both domestically registered/traded/registered assets/ Securities exchanged on stock market transactions; while Precia operates under strict guidelines set by regulations on stock market transactions related transactions related to market transactions on stock market transactions whereas Precia operates under strict compliance rules to facilitate trades of all classes/ securities/ stock market transactions on stock market transactions related to all classes/asse/ securities involved stock market transactions across all classes/ securities of stock market transactions while Deceval provides custodial, clearing administration services with regard to credit securities equities or financial instruments issued or traded or registered domestically or internationally registered or traded registered securities transactions on stock exchange markets worldwide CRCC provides services related to clearing administration services provided for all assets/ securities of stock exchange transactions on stock market transactions and their related transactions and registration of financial instruments which allow trading operations on domestic or international stock markets while
Regulations
Bolsa de valores Colombia (BVC) is Colombia’s principal provider of capital market infrastructure, serving across its entire value chain. BVC operates transactional systems for equity, fixed income and derivative markets as well as foreign exchange trading and primary equity issuance; its subsidiary firms also offer post-trading services like clearing settlement and custody services.
The BVC is an integral component of Colombia’s financial system, playing an essential role in supporting sustainable economic development in Colombia. By adhering to best practices and adopting technology integration initiatives, they have dramatically increased efficiency and profitability while simultaneously assuring Colombian securities industry meets international standards.
Colombia’s stock market may still be relatively small when compared to others in Latin America, yet it is experiencing rapid expansion due to several factors, including multinational company establishment and increased energy commodity demand.
Founded in 2001 through the merger of Bogota, Medellin and Occidente stock exchanges, bolsa de valores de Colombia’s mission is to promote and manage national and foreign exchange markets as well as securities, bonds and derivatives markets. Additionally, its trading platform also offers services through subsidiaries and training centers; all this makes up a public entity whose shares can be traded on Bolsa Nacional de Valores.
Trading
The company specializes in the establishment, regulation and operation of commercial establishments that facilitate trading of tradable assets and securities. Their bvc segment serves as a stock exchange that offers services such as pre-trading (issuer services and issuances), trading (access, electronic and OTC), post-trading (clearing, settlement custody administration securities administration), information (market data vendor), price vendor services as well as technology (system implementation for core banking capital markets digital solutions). Meanwhile their Deceval and CRCC segments provide custodial and depositary services for credit securities, foreign currencies equities deposited securities on deposit respectively.
BVC was formed in 2001 through the merger of Bogota, Medellin and Occidente Stock Exchanges. Today it stands as Colombia’s primary multiproduct exchange and strives to be an influential force in Latin America with expertise in trading fixed income securities, stocks, derivatives and foreign currency derivatives. BVC also forms part of Latin American Integrated Market (MILA), joining with Santiago Bolsa de Comercio de Lima Bolsa de Valores de Lima along with their respective central securities depositories in each country.
BVC’s share price volatility relative to both its industry and market is low, signaling long-term investor trust in their shares. Furthermore, revenue growth rate has been stable over the last two years while earnings per share exceeded expectations during its last report.