The Stock Exchanges of Quito and Guayaquil made observations to the “Organic Law of Attraction of Investments, Strengthening of the Stock Market and Digital Transformation” which must be dealt with by the Assembly on an urgent economic basis. In an official statement they pointed out the articles that they consider “do not contribute to the development and growth of the Stock Market in Ecuador.”
Currently heThe law is being discussed in the Economic Development Commission. For this afternoon, the appearance of several productive sectors that will expose their appreciations on the law will be expected.
Regarding the reforms on the stock market, the Stock Exchanges said, in the first instance, they did not agree with the creation of an over-the-counter market. “Separate the negotiation of public sector values from those of the private sector means creating parallel markets What will not favor transparency or price training, in a growing market, “they indicated.
They consider it positive that public auctions of domestic debt securities are promoted, since they favor price formation. However, they indicate that the proposal to use transactional platforms managed by institutions that are not independent from the central government could leave doors open for anti-technical management and without the transparency that the Stock Exchanges offer.
They also maintain that public auctions of domestic debt securities can continue to be carried out on the SEB (Electronic Stock Market System) platform, whose provider is the international company ICAP headquartered in London, England (TP ICAP Group, London, England).
for bags, “The bill erroneously leaves open the possibility of creating parallel markets for the negotiation of government bonds and other public titles, since their placements would be made through auctions of over-the-counter platforms (primary market) and their subsequent sales between private individuals, banks, mutual funds, investment funds, insurance companies and others, will be on the stock exchange ( Secondary market)”.
Either they agree with the provision of the law that empowers the Financial Policy and Regulation Board to establish shareholding caps by sectors and / or nature of shareholders. They ensure that this “will create insecurity and instability in the stock market From stockbags and their quotation, dismissing new national and international investors. “
For the Stock Exchanges, the law violates the constitutional right to ownership of the shareholders and investors of the subscribed and paid capital of the Stock Exchanges and creates precedents that could be applied to companies in other sectors of the economy.
they say disagree with the proposal to create a mixed securities depository and they assure that the market has mostly preferred the private Securities Deposit.
According to the government representatives who attended the first appearance yesterday before the Economic Development Commission, what is sought with the reforms to the stock market is to give it greater institutionality and, above all, place controls so that problems like those that occurred in the Isspol case, the Ecuagran operations, among others, do not occur. Control will remain in the Superintendence of Companies, but control of the Insurance sector is taken away from it, which passes to the Superintendence of Banks. Additionally, it is sought that international values bags can participate in the shareholding structure.
According to the statement, the Stock Exchanges agree that any additional control and review and supervision mechanism that the reforms propose will be in favor of the development of the Ecuadorian Stock Market and we support its implementation, to the extent that they generate greater efficiency, effectiveness, opportunity and productivity for the normal development of investment and financing processes.
The Quito and Guayaquil Stock Exchanges consider that the changes to the Stock Market are important and necessary, however, the process must include an adequate debate and participation of each member of said market, which has not happened with the stock markets.
Source: Eluniverso
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