Difference between revisions of "Colombia Stock Exchange"

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{{Infobox_Company
 
{{Infobox_Company
 
| company_name = Colombia Stock Exchange (Bolsa de Valores de Colombia)
 
| company_name = Colombia Stock Exchange (Bolsa de Valores de Colombia)
| company_logo =  [[Image:ColombiaSX.jpg]]
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| company_logo =  [[Image:BVC_logo.jpg]]
| key_people =  Chief Executive Juan Pablo Cordoba
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| key_people =  [[Juan Pablo Cordoba]], CEO
 
| foundation = 2001
 
| foundation = 2001
 
| location = Bogotá
 
| location = Bogotá
 
| products =  IGBC Index   
 
| products =  IGBC Index   
| homepage = http://www.bvc.com.co/bvcweb/mostrarpagina.jsp
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| homepage = http://en.bvc.com.co/nueva/index_en.html
 
}}
 
}}
The Colombia Stock Exchange (CSE), known in Spanish as the Bolsa de Valores de Colombia (BVC), was formed eight years ago from a union of three separate regional [[exchange]]s and is a now one of the world's top [[trading]] centers for [[fixed income]] [[securities]]. The CSE's main stock market [[benchmark]], the [[IGBC Index]], recovered slightly in Q1 2009 after taking a pounding in 2008's [[financial crisis]].
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The Colombia Stock Exchange (CSE), known in Spanish as the Bolsa de Valores de Colombia (BVC), was formed in 2001 from a union of three separate regional [[exchange]]s and offers trading in [[fixed income]] and [[securities]].  
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The exchange also owns the Centralized Depository of Securities (Deceval), and the two entities operate under the BVC umbrella. The two groups focus on bringing financial services and financing to small, medium and large companies. Deceval handles post-trade processes and services. The combined company offers trading, listings, post-trade, market data and technology services.<ref>{{cite web|url=https://translate.google.com/translate?hl=en&sl=es&u=https://en.bvc.com.co/pps/tibco/portalbvc/Home/NoticiasDetalle%3Fcom.tibco.ps.pagesvc.renderParams.sub5d9e2b27_11de9ed172b_-783b7f000001%3Drp.docURI%25253Dpof%2525253A%2525252Fcom.tibco.psx.model.cp.Document%2525252F64c18ecf_16059d4bd50_4bf1c0a84ca9%252526rp.currentDocumentID%25253D64c18ecf_16059d4bd50_4bf1c0a84ca9%252526action%25253DopenDocument%252526addDefaultTarget%25253Dfalse%252526&prev=search|name=The BVC is now worth $ 708,707 million, after integration with Deceval|org=Press Release|date=May 13, 2019}}</ref>
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BVC ranked 48th in global derivative exchange volume in 2018 with 1.06 million contracts traded, a 4.5 percent decrease from the previous year, according to the FIA Annual Volume Report.<ref>{{cite web|url=https://marketvoice.fia.org/issues/2018-03/2017-annual-volume-survey|name=2017 Annual Volume Survey|org=FIA|date=April 3, 2018}}</ref><ref>{{cite web|url=https://marketvoice.fia.org/articles/record-year-derivatives|name=2018 Annual Volume Survey|org=Futures Industry.org|date=May 13, 2019}}</ref>
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In April 2019, it has a market cap of cop$725 million.<ref>{{cite web|url=https://www.bvc.com.co/pps/tibco/portalbvc/Home/Accionistas/presentaciones?com.tibco.ps.pagesvc.renderParams.sub5d9e2b27_11de9ed172b_-762b7f000001=action%3Ddummy%26&com.tibco.ps.pagesvc.action=updateRenderState&rp.currentDocumentID=-72fa34a0_166c9c7bdbe_-eaec0a84ca9&rp.revisionNumber=12&rp.attachmentPropertyName=documentoAdjunto&com.tibco.ps.pagesvc.targetPage=1f9a1c33_132040fa022_-78750a0a600b&com.tibco.ps.pagesvc.mode=resource&rp.redirectPage=1f9a1c33_132040fa022_-787e0a0a600b|name=Bolsa de Valores de Colombia Corporate Presentation April 2019|org=BVC|date=May 21, 2019}}</ref>
  
 
== Background ==
 
== Background ==
The Colombia Stock Exchange was formed in July 2001 through a [[merger]] of the country's three regional [[exchange]]s: Bolsa de Bogotá, Bolsa de Medellín and the Bolsa de Occidente in Cali.<ref>{{cite web|url=http://en.wikipedia.org/wiki/Bolsa_de_Valores_de_Colombia|name=Bolsa de Valores de Colombia|org=Wikipedia|date=April 22, 2009}}</ref> Although it's called a stock exchange ('bolsa' in Spanish), between 85 percent and 90 percent of the CSE's trading is actually conducted in the [[bond]] market,<ref>{{cite web|url=http://www.incakolanews.blogspot.com/2008/09/colombia-stock-market-and-igbc-index.html|name=The Colombia stock market and IGBC index: An overview|org=Incakolanews.com|date=April 21, 2009}}</ref> where it ranks as the world's fourth-largest [[market]].
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The Colombia Stock Exchange was formed in July 2001 through a [[merger]] of the country's three regional [[exchange]]s: Bolsa de Bogotá, founded in 1929; Bolsa de Medellín, founded in 1961; and the Bolsa de Occidente in Cali, founded in 1983.<ref>{{cite web|url=http://en.wikipedia.org/wiki/Bolsa_de_Valores_de_Colombia|name=Bolsa de Valores de Colombia|org=Wikipedia|date=April 22, 2009}}</ref> Although it's called a stock exchange ('bolsa' in Spanish), between 85 percent and 90 percent of the CSE's trading is actually conducted in the [[bond]] market, where it ranks as the world's fourth-largest [[market]].<ref>{{cite web|url=http://www.incakolanews.blogspot.com/2008/09/colombia-stock-market-and-igbc-index.html|name=The Colombia stock market and IGBC index: An overview|org=Incakolanews.com|date=April 21, 2009}}</ref>
  
Just prior to September 2008's global [[credit crisis]], CSE announced it would start offering [[derivatives]] trading via the [[Nasdaq]] OM Group electronic [[trading platform]]. The move is part of a strategy for the CSE to offer itself as a Latin trading alternative to the region's big dogs, Brazil's [[BM&F Bovespa]] and the [[Mexican Stock Exchange]].  
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In 2006, the exchange began offering fixed income securities on its electronic trading platform.
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 +
In 2007, the exchange became a publicly traded company and the CRCC, the clearing house began its operations. It also launched SET Icap in 2007 for FX, derivatives and OTC trading.
 +
 
 +
In 2008 it launched [[derivatives]] trading via the [[Nasdaq]] OM Group electronic [[trading platform]]. The move was part of a strategy for the BVC to offer itself as a Latin trading alternative to the region's larger markets, Brazil's [[B3]] and the [[Mexican Stock Exchange]].
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 +
In 2011, BVC launched MILA, an effort at creating a regional capital market across Latin America.
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In 2015, the exchange bought a 51 percent stake in Sophos Banking Solutions, a technology firm focused on finance and the securities sector. The deal provided the exchange with a technology division aimed at providing a variety of financial services  in capital markets.<ref>{{cite web|url=https://www.financecolombia.com/breaking-news-bolsa-de-valores-colombia-acquires-sophos-banking-solutions/|name=Bolsa De Valores Colombia Acquires Sophos Banking Solutions|org=Finance Colombia|date=May 21, 2019}}</ref>
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In 2017, BVC acquired Centralized Depository of Securities (Deceval) which was founded in 1992. The company handles post-trade services for the exchange. The combined companies are designed to create a full capital market infrastructure for the country.<ref>{{cite web|url=https://www.spglobal.com/marketintelligence/en/news-insights/trending/8ymisotrzlsdwbrajia5ba2|name=Bolsa de Valores de Colombia closes merger with Deceval|org=S&P Global|date=May 21, 2019}}</ref>
  
 
== Key products ==
 
== Key products ==
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== Key people ==
 
== Key people ==
CSE Chief Executive [[Juan Pablo Cordoba]] has held the post since March 2005 after a stint as director of Colombia's deposit insurance [[fund]]. He worked in Washington, D.C. with the [[International Monetary Fund]] (IMF) from 1999 until 2002 and earlier obtained a Ph.D. in [[economics]] from the University of Pennsylvania. In a mid-2008 interview with [[Securities Industry News]] Cordoba outlined the CSE's competitive strategy of [[invest]]ing in new [[electronic trading]] technology to become an advanced global trading market.<ref>{{cite web|url=http://www.securitiesindustry.com/issues/19_70/22661-1.html|name=Colombia Stock Exchange Wants to Be a Latin American Alternative|org=Securities Industry News|date=April 21, 2009}}</ref> Cordoba also told SI News: "We...expect the derivatives market will bring new energy to the Colombian [[capital markets]]."
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* [[Juan Pablo Cordoba]] CEO <ref>{{cite web|url=http://www.securitiesindustry.com/issues/19_70/22661-1.html|name=Colombia Stock Exchange Wants to Be a Latin American Alternative|org=Securities Industry News|date=April 21, 2009}}</ref>
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== Contract Volume ==
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{| cellpadding="5" cellspacing="1" style="background:#FFFFFF;"
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|- align="left" style="background:#CCCCCC;"
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| '''Year'''
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|'''Total Annual Volume'''
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|'''Percent Change'''
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|- align="left" style="background:#EEEEEE;"
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|2018
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|1,064,802
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|(-)4.5%
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|- align="left" style="background:#EEEEEE;"
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|2017
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|1,116,028
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|(-)20.5%
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|- align="left" style="background:#EEEEEE;"
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|2016
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|1,403,564
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|33.9%
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|- align="left" style="background:#EEEEEE;"
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|2015
 +
|1,048,199
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|10.2%
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|- align="left" style="background:#EEEEEE;"
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|2014
 +
|941,620
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|37.4%
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|- align="left" style="background:#EEEEEE;"
 +
|2013
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|685,133
 +
| --
 +
|}
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== John Lothian News Interview, May 2015 ==
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'''Thinking Global: Colombia's Juan Pablo Cordoba Says Global Regulation Hurts Emerging Markets'''
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If you don’t know [[Juan Pablo Cordoba]], you probably should. As the CEO of the Bolsa de Valores de Colombia (Colombia Securities Exchange) and chairman of the [[World Federation of Exchanges]], he is one of the exchange executives who has a unique perspective on emerging exchanges such as those in Latin America and beyond. Yet he also has a firm understanding of the G20 market reforms that have filtered throughout the world in the form of [[Dodd-Frank]], [[Basel III]], [[MIFID]] and [[EMIR]].
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Cordoba spoke with [[Jim Kharouf]], editor-in-chief of John Lothian News, at the World Federation of Exchanges/IOMA conference in Sao Paulo, Brazil about the challenges and opportunities for the Colombia exchange, including regional efforts such as [[MILA]], the Latin American Integrated Market. He also provides a credible voice regarding the unintended consequences of applying a host of clearing, capital and compliance hurdles that could stifle the growth of such new markets.
  
== Latest news ==
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[http://www.johnlothiannews.com/2015/05/thinking-global-colombias-juan-pablo-cordoba-says-global-regulation-hurts-emerging-markets/#.VUvcbZOstCA Read the interview on JohnLothianNews.com]
Although [[trading]] on the CSE recovered somewhat after the [[IGBC Index]] lost almost 30 percent of its [[value]] in 2008, [[analyst]]s don't expect the [[rally]] to continue through 2009 as more gloomy local [[revenue]] results are expected.<ref>{{cite web|url=http://online.wsj.com/article/BT-CO-20090408-714495.html|name=Colombia 2Q Stock Outlook: Weak Earnings To Crimp Recovery|org=Dow Jones|date=April 17, 2009}}</ref> Market leader [[Ecopetrol]] is predicted to post big profit declines in 2009, unsettling the overall Colombian [[equities]] market.
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== References ==
 
== References ==

Latest revision as of 15:13, 21 May 2019

FTSE Russell banner 2016.gif
Colombia Stock Exchange (Bolsa de Valores de Colombia)
BVC logo.jpg
Founded 2001
Headquarters Bogotá
Key People Juan Pablo Cordoba, CEO
Products IGBC Index
Website http://en.bvc.com.co/nueva/index_en.html

The Colombia Stock Exchange (CSE), known in Spanish as the Bolsa de Valores de Colombia (BVC), was formed in 2001 from a union of three separate regional exchanges and offers trading in fixed income and securities.

The exchange also owns the Centralized Depository of Securities (Deceval), and the two entities operate under the BVC umbrella. The two groups focus on bringing financial services and financing to small, medium and large companies. Deceval handles post-trade processes and services. The combined company offers trading, listings, post-trade, market data and technology services.[1]

BVC ranked 48th in global derivative exchange volume in 2018 with 1.06 million contracts traded, a 4.5 percent decrease from the previous year, according to the FIA Annual Volume Report.[2][3]

In April 2019, it has a market cap of cop$725 million.[4]

Background

The Colombia Stock Exchange was formed in July 2001 through a merger of the country's three regional exchanges: Bolsa de Bogotá, founded in 1929; Bolsa de Medellín, founded in 1961; and the Bolsa de Occidente in Cali, founded in 1983.[5] Although it's called a stock exchange ('bolsa' in Spanish), between 85 percent and 90 percent of the CSE's trading is actually conducted in the bond market, where it ranks as the world's fourth-largest market.[6]

In 2006, the exchange began offering fixed income securities on its electronic trading platform.

In 2007, the exchange became a publicly traded company and the CRCC, the clearing house began its operations. It also launched SET Icap in 2007 for FX, derivatives and OTC trading.

In 2008 it launched derivatives trading via the Nasdaq OM Group electronic trading platform. The move was part of a strategy for the BVC to offer itself as a Latin trading alternative to the region's larger markets, Brazil's B3 and the Mexican Stock Exchange.

In 2011, BVC launched MILA, an effort at creating a regional capital market across Latin America.

In 2015, the exchange bought a 51 percent stake in Sophos Banking Solutions, a technology firm focused on finance and the securities sector. The deal provided the exchange with a technology division aimed at providing a variety of financial services in capital markets.[7]

In 2017, BVC acquired Centralized Depository of Securities (Deceval) which was founded in 1992. The company handles post-trade services for the exchange. The combined companies are designed to create a full capital market infrastructure for the country.[8]

Key products

The Colombia Stock Exchange's IGBC Index serves as the overall stock market benchmark and is a capitalization-weighted indicator of Colombia's highest-cap, most liquid stocks.[9] The exchange's other main index product, the COLCAP, measures the CSE's 20 most liquid stocks but limits individual equity weights to 20 percent, compared to the IGBS where a single stock, Ecopetrol, is more than half the index value.[10]

Key people

Contract Volume

Year Total Annual Volume Percent Change
2018 1,064,802 (-)4.5%
2017 1,116,028 (-)20.5%
2016 1,403,564 33.9%
2015 1,048,199 10.2%
2014 941,620 37.4%
2013 685,133 --

John Lothian News Interview, May 2015

Thinking Global: Colombia's Juan Pablo Cordoba Says Global Regulation Hurts Emerging Markets

If you don’t know Juan Pablo Cordoba, you probably should. As the CEO of the Bolsa de Valores de Colombia (Colombia Securities Exchange) and chairman of the World Federation of Exchanges, he is one of the exchange executives who has a unique perspective on emerging exchanges such as those in Latin America and beyond. Yet he also has a firm understanding of the G20 market reforms that have filtered throughout the world in the form of Dodd-Frank, Basel III, MIFID and EMIR.

Cordoba spoke with Jim Kharouf, editor-in-chief of John Lothian News, at the World Federation of Exchanges/IOMA conference in Sao Paulo, Brazil about the challenges and opportunities for the Colombia exchange, including regional efforts such as MILA, the Latin American Integrated Market. He also provides a credible voice regarding the unintended consequences of applying a host of clearing, capital and compliance hurdles that could stifle the growth of such new markets.

Read the interview on JohnLothianNews.com

References

  1. The BVC is now worth $ 708,707 million, after integration with Deceval. Press Release.
  2. 2017 Annual Volume Survey. FIA.
  3. 2018 Annual Volume Survey. Futures Industry.org.
  4. Bolsa de Valores de Colombia Corporate Presentation April 2019. BVC.
  5. Bolsa de Valores de Colombia. Wikipedia.
  6. The Colombia stock market and IGBC index: An overview. Incakolanews.com.
  7. Bolsa De Valores Colombia Acquires Sophos Banking Solutions. Finance Colombia.
  8. Bolsa de Valores de Colombia closes merger with Deceval. S&P Global.
  9. IGBC. Bloomberg.
  10. Colombia Stocks May ‘Sustain Valuation,’ Bolsa’s Cordoba Says. Bloomberg.
  11. Colombia Stock Exchange Wants to Be a Latin American Alternative. Securities Industry News.