Bolsa de Valores de la República Dominicana
Encyclopedia
Bolsa de Valores de la República Dominicana (Stock Market of the Dominican Republic
, BVRD) is the only stock exchange
in the Dominican Republic, basically performing a transaction regulation function. It began operations in 1991 and is viewed as a cornerstone of the country's integration into the global economy and domestic development. It is also one of the most active stock exchanges in Latin America. The BVRD operates Monday through Friday from 10:00 a.m. to 12:00 p.m.
and capital market
is just coming into consciousness. Despite the limitations resulting from inadequate legislation, transactions at the BVRD grew steadily during the 1990s.
houses registered at the BVRD. Thirteen belong to financial groups and only seven are operative and belong to banking institutions. Almost 75 percent of the securities transactions are cross transactions in which both the buyer and the seller are clients of the same brokerage house. In recent years various laws were approved in an attempt to give new life to the Dominican securities market
. In 2000, the Securities Market Law (SML), Law 19-00, was enacted, creating the Superintendence of Securities (Superintendencia de Valores, SIV) as the regulatory agency of the securities market. There are 24 securities brokers and there are no registered securities agents. There is one commodities exchange
in the country, the Bolsa Agroempresarial de la Republica Dominicana, S.A., which has 14 registered brokerage houses.
Since many companies do not wish to sell shares to the public (this is a common theme among family owned Latin-American companies), the majority of activity has been in the capital and fixed income markets. The primary activities of the exchange involve public sale of commercial paper
and bond
instruments.
62, 885.6 million have been executed at the BVRD. Of this total, 99.96 percent corresponds to commercial paper trades. On the other hand, 75 percent of this aggregated amount was traded from 1999 to 2001. Volumes negotiated at the BVRD reached record levels in the year 2001, going from RD 4,041.7 million in 2000 to RD 22,680.6 million in 2001, an increase of 461.2 percent. In the year 2002, the BVRD made operations for RD 24,841.9 million, for an increase of 9.52 percent. The average interest rate
was 18.9 percent. As of October 2003 the volume of transactions of the Santo Domingo Stock Market was RD 16,129,021,469.69 and the average rate was 24.42 percent.
As of 2009, BVRD is headed by President Marcos Troncoso.
Companies of the most trading activity from 1991 to 2005 included:
Dominican Republic
The Dominican Republic is a nation on the island of La Hispaniola, part of the Greater Antilles archipelago in the Caribbean region. The western third of the island is occupied by the nation of Haiti, making Hispaniola one of two Caribbean islands that are shared by two countries...
, BVRD) is the only stock exchange
Stock exchange
A stock exchange is an entity that provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and...
in the Dominican Republic, basically performing a transaction regulation function. It began operations in 1991 and is viewed as a cornerstone of the country's integration into the global economy and domestic development. It is also one of the most active stock exchanges in Latin America. The BVRD operates Monday through Friday from 10:00 a.m. to 12:00 p.m.
History
During April 1980, a group of Dominican industralists began to meet with the intention of formalizing a stock market and creating a regulating body guarded by the transparency and the efficiency of the operations in this market. This group consisted of Ricardo Valdéz Albízu, Hector Rizek, Ramón Mena, Winston Marrero, Otto Montero, Frederic Eman-Zadé, Luis Sabater and Rosendo Alvarez III. During 1987 this original group contacted Robert Bishop, the former vice-president of the New York Stock Exchange, to assist with the markets creation. The Dominican Republics first stock exchange finally came into legal existence under Presidential Decree No. 554-89 that was passed on February 20, 1989, but actually did not begin formal operations until December 1991. It was originally known as the Bolsa de Valores de Santo Domingo Inc. In 1997, as a result of the fact that its activities extended into other cities of the country, it changed its name to Bolsa de Valores de la República Dominicana. This means that the market is still relatively new, and the concept of both an equityStock
The capital stock of a business entity represents the original capital paid into or invested in the business by its founders. It serves as a security for the creditors of a business since it cannot be withdrawn to the detriment of the creditors...
and capital market
Capital market
A capital market is a market for securities , where business enterprises and governments can raise long-term funds. It is defined as a market in which money is provided for periods longer than a year, as the raising of short-term funds takes place on other markets...
is just coming into consciousness. Despite the limitations resulting from inadequate legislation, transactions at the BVRD grew steadily during the 1990s.
Structure
There are twenty brokerageStock broker
A stock broker or stockbroker is a regulated professional broker who buys and sells shares and other securities through market makers or Agency Only Firms on behalf of investors...
houses registered at the BVRD. Thirteen belong to financial groups and only seven are operative and belong to banking institutions. Almost 75 percent of the securities transactions are cross transactions in which both the buyer and the seller are clients of the same brokerage house. In recent years various laws were approved in an attempt to give new life to the Dominican securities market
Securities market
Securities market is an economic institute within which take place sale and purchase transactions of securities between subjects of economy on the base of demand and supply....
. In 2000, the Securities Market Law (SML), Law 19-00, was enacted, creating the Superintendence of Securities (Superintendencia de Valores, SIV) as the regulatory agency of the securities market. There are 24 securities brokers and there are no registered securities agents. There is one commodities exchange
Commodities exchange
A commodities exchange is an exchange where various commodities and derivatives products are traded. Most commodity markets across the world trade in agricultural products and other raw materials and contracts based on them...
in the country, the Bolsa Agroempresarial de la Republica Dominicana, S.A., which has 14 registered brokerage houses.
Since many companies do not wish to sell shares to the public (this is a common theme among family owned Latin-American companies), the majority of activity has been in the capital and fixed income markets. The primary activities of the exchange involve public sale of commercial paper
Commercial paper
In the global money market, commercial paper is an unsecured promissory note with a fixed maturity of 1 to 270 days. Commercial Paper is a money-market security issued by large banks and corporations to get money to meet short term debt obligations , and is only backed by an issuing bank or...
and bond
Bond (finance)
In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest to use and/or to repay the principal at a later date, termed maturity...
instruments.
Performance
From 1991 to 2001, transactions for a total of RDRD
Rd or RD may refer to:-Media and entertainment:* Radiant Dawn, a tactics, turn based strategy RPG for the Wii* Radical Dreamers, a text-based role playing game on the Satellaview made in 1996...
62, 885.6 million have been executed at the BVRD. Of this total, 99.96 percent corresponds to commercial paper trades. On the other hand, 75 percent of this aggregated amount was traded from 1999 to 2001. Volumes negotiated at the BVRD reached record levels in the year 2001, going from RD 4,041.7 million in 2000 to RD 22,680.6 million in 2001, an increase of 461.2 percent. In the year 2002, the BVRD made operations for RD 24,841.9 million, for an increase of 9.52 percent. The average interest rate
Interest rate
An interest rate is the rate at which interest is paid by a borrower for the use of money that they borrow from a lender. For example, a small company borrows capital from a bank to buy new assets for their business, and in return the lender receives interest at a predetermined interest rate for...
was 18.9 percent. As of October 2003 the volume of transactions of the Santo Domingo Stock Market was RD 16,129,021,469.69 and the average rate was 24.42 percent.
As of 2009, BVRD is headed by President Marcos Troncoso.
Members of the BVRD
The members of the BVRD include:- Acciones y Valores, S.A.S.A. (corporation)S.A. designates a particular type of corporation in various countries, mostly those employing the civil law. It originated in Spain during the 16th century. Depending on language, the abbreviation stands for various phrases meaning anonymous society, anonymous company, anonymous partnership, or...
(ACYVAL) - Corredores de Títulos y Valores, S.A. (COTESA)
- Mercantil de Títulos y Valores, S.A. (MTV)
- Magna Corredores, S.A.
- Bonanza Corredores, S.A.
- Valores Corporativos, S.A. (VALCORP)
- Lar Capital, S.A.
- Gerencial de Valores, S.A.
- Laline Valores, S.A., etc.
Companies of the most trading activity from 1991 to 2005 included:
| Rank | Company - Entity | Volume | Participation |
|---|---|---|---|
| 1 | Leasing Popular, S.A. | 22,272,502,546.48 | 49.87% |
| 2 | Factoring Popular, S.A. | 5,927,218,929.46 | 13.27%. |
| 3 | Immobiliaria BHD, S.A. | 2,691,948,537.10 | 6.03% |
| 4 | Avelino Abreu, C por A | 1,224,227,289.53 | 2.74% |
| 5 | Servinvest | 1,149,697,390.49 | 2.57% |
| 6 | Curaçao Trading Co. | 1,005,614,948.04 | 2.25% |