Bolsa de Valores de El Salvador

Bolsa de Valores de El Salvador

Corporation listed on Bolsa de Valores de El Salvador

Rolando Arturo Duarte Schlageter - Chairman

Rolando Arturo Duarte Schlageter - Chairman

Authorities

Chairman
Rolando Arturo Duarte Schlageter

Vice-Chairman
Jorge Alfonso Zablah Siri

Secretary
Miguel Ángel Simán Dada

Treasurer
Gerardo Antonio Balzaretti

Regular Directors
Paolamaría Valiente Catani
Claudia María López Novoa
Oscar José Santamaría

Alternate Directors
Eduardo Arturo Alfaro
Victor Miguel Silhy
Samuel Antonio Quiros Noltenius
Jorge Barrientos
Nicola Angelucci
Joaquín Rivas Boschma
Maria Eugenia Brizuela de Avila

General Manager
José Arrieta Whisonant

Edificio Bolsa de Valores,  Blvd. Merliot y Av. Las Carretas,
Urbanización Jardines de la Hacienda,
Antiguo Cuscatlán, La Libertad, El Salvador

Phone: (503) 2212-6400
www.bolsadevalores.com.sv

Main products and markets

  • Shares
  • Fixed income
  • NCTPs, LETES, Exchange Traded Papers, Negotiable Certificate of Liquidity
  • Repos

Main shareholders

BVES does not have principal shareholders because it is a demutualized institution governed under the Securities Market Act. No shareholder is allowed to own more than 0.5% of total shares of stock, which shall have identical face value and belong to the same series. There will be no preference shares.

Trading hours

Market/product
Schedule
Repos market
09:30 - 11:00
 Primary market
09:15 - 09:30
 Secondary market
08:30 - 15:30

Market data

(Additional information at www.fiabnet.org)
Item
2016
2010
2005
2000
Total market capitalization (millions of US$)
20,377
4,227
3,623
1,693
Number of listed companies
125
94
38
32
Stock Index Level
IBES
194
197.21
188
-
Number of brokerage companies
11
12
14
18
Total value of Share trading (Millions of US$)
4
35
80
25
Total value of Bond trading (Millions of US$)
840
381
1,879
2,721
Market Capitalization - (US$ Millions)
Total value of Share trading - (US$ Millions)
Total value of Fixed Income trading - (US$ Millions)

Market capitalization split by economic sector

 
Sector
2016
2015
%
%
Banking, financial and insurance
94
94
IT
3
3
Others
3
3
Total
100
100
2016

Brief history

 » Bolsa de Valores de El Salvador

On April 27, 1992, Bolsa de Valores de El Salvador became operative, thus giving rise to the so-called national securities market.

Ever since its inception, BVES has grown and evolved with a focus on implementing innovative technology, exercising internal control, developing trade processing, establishing rules of conduct and ethics, and executing regulatory procedures enabling to maintain the highest efficiency and safety standards. Likewise, the Exchange has been at the innovation forefront regarding financial instruments and services in order to encourage securities market development.

The securities market was organized within a regulatory and supervisory framework established under the Securities Market Act, and controlled by the Financial System Superintendence, which ensures market transparency and safety for investors and issuers alike.

Another major step forward has been the enactment of several laws, such as the Book-Entry Issues Act, which facilitated securities trading, custody and management, and also provided enhanced market efficiency, safety, and transparency.

This positive evolution in law amendments, together with a comprehensive law reform conducted in 2001, has led to opening doors to the global securities market, thereby enabling local trading of foreign securities.

BVES has also made great progress in the technology field.  As from November 2007, 100% of all market trades have been executed through electronic systems, after launching the electronic trading system for repo transactions. The Bolsa de Valores de El Salvador has constantly been at the technology forefront. In 2011, the Exchange developed a new Electronic Trading System that integrates the three markets on which BVES trades into a single platform.

As regards product innovation, in 2001 the Exchange began to list foreign securities, thus creating a financial supermarket tailored to the needs of any customer profile. From the funding perspective, the Exchange has evolved by offering companies flexible and versatile products that are customized to meet diverse financing needs. In 2010, the first securitized products set a landmark in BVES history, and opened doors to a new financing mechanism for a great number of projects from both the private and public sectors in El Salvador.

Organization chart

Organization chart

Financial indicators

2014
2013
Net Income (U$S thousands)
455
569
ROE (Net Income/shareholders’ equity)
8.81%
11.07%
ROA (Net Income/Assets)
7.50%
9.18%
EBT/Shareholders’ equity
14.44%
18.08%
EBT/Assets
12.29%
15%
 » Bolsa de Valores de El Salvador

Clearing, settlement and depositary services

Once transactions are finally executed within the BVES Trading Systems, they are automatically transferred to the support systems managed by the Stock Exchange and the Central Securities Depository.

Funds settlement is performed through the Electronic Trade Settlement System (SELIB), a service that is provided by the Exchange to all Brokerage Firms. This system enables member firms to disclose information to the Exchange on the banks where their customers shall receive or make the relevant payments.

For purposes of executing trade settlement, two customer types are identified as follows: (i) clients having an account with [central bank] Banco Central de Reserva (including every Bank within the system), and (ii) clients who do not have an account with the BCR (individuals and entities that are also called private customers). In order to provide better customer service, it is recommended that Brokerage Firms keep accounts with all Banks within the system.

Securities settlement is performed by the Central Securities Depository under a gross settlement scheme. Once [CSD] CEDEVAL receives information on the various stock-exchange transactions, it verifies that each account with a selling position has sufficient provision of securities in order to settle the trade without any inconvenience. Once the CSD verifies and confirms with the Exchange that there is provision of securities and availability of funds, securities are transferred under a Delivery versus Payment (DvP) scheme managed by both institutions.

Custody is performed by Central Securities Depository (CEDEVAL).

Central counterparty - CCP

A Central Counterparty mechanism is not available.

Member of the following organizations

  • Asociación de Bolsas de Centroamérica y el Caribe (BOLCEN) – 1994
  • Federación Iberoamericana de Bolsas (FIAB) – 1995

Agreements with other Exchanges

  • AMERCA - Integration Agreement between Bolsas de Costa Rica, El Salvador, and Panama.
  • CEDEVAL - Information Sharing Agreement.
  • Dataguard –  Information Backup Agreement.
  • Remote Operating System Agreement between Stock Exchanges and Depositaries of El Salvador and Panama.

Edited by FIAB Secretariat. The information referred to member exchanges and markets compiled in this Handbook has been provided to FIAB by these entities and is updated up to April 18, 2017. Every effort has been made to ensure that the information in this edition is accurate at the time of its publication. FIAB Secretariat cannot accept responsibility for errors or omissions.