BRVM - AbsoluteAstronomy.com

The Bourse Régionale des Valeurs Mobilières SA ("Regional Securities Exchange SA

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...

") or BRVM, is a regional 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...

serving the following west African countries: Benin

Benin

Benin , officially the Republic of Benin, is a country in West Africa. It borders Togo to the west, Nigeria to the east and Burkina Faso and Niger to the north. Its small southern coastline on the Bight of Benin is where a majority of the population is located...

Burkina Faso

Burkina Faso – also known by its short-form name Burkina – is a landlocked country in west Africa. It is surrounded by six countries: Mali to the north, Niger to the east, Benin to the southeast, Togo and Ghana to the south, and Côte d'Ivoire to the southwest.Its size is with an estimated...

Guinea Bissau Côte d'Ivoire

Côte d'Ivoire

The Republic of Côte d'Ivoire or Ivory Coast is a country in West Africa. It has an area of , and borders the countries Liberia, Guinea, Mali, Burkina Faso and Ghana; its southern boundary is along the Gulf of Guinea. The country's population was 15,366,672 in 1998 and was estimated to be...

Mali

Mali , officially the Republic of Mali , is a landlocked country in Western Africa. Mali borders Algeria on the north, Niger on the east, Burkina Faso and the Côte d'Ivoire on the south, Guinea on the south-west, and Senegal and Mauritania on the west. Its size is just over 1,240,000 km² with...

Niger

Niger , officially named the Republic of Niger, is a landlocked country in Western Africa, named after the Niger River. It borders Nigeria and Benin to the south, Burkina Faso and Mali to the west, Algeria and Libya to the north and Chad to the east...

Senegal

Senegal , officially the Republic of Senegal , is a country in western Africa. It owes its name to the Sénégal River that borders it to the east and north...

Togo

Togo, officially the Togolese Republic , is a country in West Africa bordered by Ghana to the west, Benin to the east and Burkina Faso to the north. It extends south to the Gulf of Guinea, on which the capital Lomé is located. Togo covers an area of approximately with a population of approximately...

.
The exchange is located in Abidjan, Cote d'Ivoire. Market offices are maintained in each country.

BRVM is a private corporation with 2,904,300,000 CFA francs in capital.

Mission

The mission of the BRVM is to:

organize the securities market;
disseminate market information;
promote the market.

History

Time line
Market integration by the BRVM is a political, institutional and technical success. The Bourse Régionale and Dépositaire Central/Banque de Règlement (DC/BR) were established in several phases:

November 14, 1973: Treaty signed establishing the West African Monetary Union (WAMU) which created a financial market organized into sub-regions.

December 17, 1993: WAMU Council of Ministers decides to create a Regional Financial Market and mandates the Central Bank of West African States
Central Bank of West African States
The Central Bank of West African States is a central bank serving the eight west African countries which comprise the West African Economic and Monetary Union:*Benin*Burkina Faso*Cote d'Ivoire*Guinea Bissau*Mali*Niger*Senegal*Togo-See also:...

(BCEAO) to conduct the project.

December 18, 1996: Various preliminary activities are conducted resulting in the formation in Cotonou
Cotonou
-Demographics:*1979: 320,348 *1992: 536,827 *2002: 665,100 *2005: 690,584 The main languages spoken in Cotonou include the Fon language, Aja language, Yoruba language and French.-Transport:...

of Bourse Régionale des Valeurs Mobilières S.A. (BRVM) and Dépositaire Central/Banque de Règlement S.A. (DC/BR), thus marking the end of the BCEAO mandate and the takeover of project management by its own agencies.

November 20, 1997: Union's Council of Ministers establishes the Regional Council for Public Saving and Financial Markets.

September 16, 1998: BRVM and DC/BR begin operations.

Operations

The BRVM is entirely electronic. The central site in Abidjan provides securities quotation and trading services as well as regulation/issuing services.
Agents sitting at workstations in their offices or desks located in national branch offices in WAEMU countries and brokerage firms can:

enter orders for securities and send them to the central site via the satellite network;
consult and edit quotation results;
consult statistical information on the BRVM and Dépositaire Central;
distribute information.

The principles followed in establishing the BRVM satisfy the requirement for both compliance with international standards and adaptability to the WAEMU socioeconomic environment. Equal access to information and the management of investors and network access costs, regardless of the economic operator's location, are key drivers. The exchange can be described as follows:

A centralized exchange driven by orders, that is, the price of a security is fixed by matching bid and ask orders collected before the quotation.

Three weekly trading sessions with two fixings (single price obtained by matching bid with ask orders). These sessions will evolve rapidly towards daily sessions to implement:

real-time quotation sessions;
a spot market with a sliding transaction closing date so operators know exactly when they will have to meet their commitments. At the start, the BRVM closed transactions on D+5 (trading day plus five business days) but this must move towards current international standards, that is, closing on D+3;
guaranteed transactions, thanks to the establishment of a market guarantee fund supported by brokerage firms to mitigate an eventual default;
holding and centralization of securities by a central clearing house and their exclusive circulation in a dematerialized form.

Listing

Eligibility
The BRVM has, at inception, two sections for stocks and a single section for bond loans.

To be eligible for the first section, a company must satisfy the following conditions:

demonstrate market capitalization equal to or higher than 500 million CFA francs;
have a net revenue margin of 3% in each of the past three years;
demonstrate five years of certified statements;
agree to sign a market activation contract;
distribute to the public at least 20% of its capital as soon as it joins the exchange;
agree to publish semi-annual revenue estimates and results trends.

Eligibility of a company for the second section is subject to the following conditions:

demonstrate market capitalization equal to or higher than 200 million CFA francs;
demonstrate two years of certified accounts;
agree to sign a market activation contract;
agree to distribute to the public ate least 20% of its capital within two years, or 15% in the event of a share capital increase.

The mandatory section-debt instruments-is accessible to bond loans, of which the total number of securities issued is higher than 25,000 and has a face value of at least 500,000,000 CFA francs.

Listing
Getting listed on the BRVM is the final link in the financing chain for businesses. It is a strategic long-term decision that requires excellent preparation. A company seeking to be listed on the BRVM must satisfy the following conditions:

be incorporated;
sign a written agreement to distribute the information required by the exchange, especially the publication of annual statements in the official newsletter (Bulletin Officiel de la Cote) and participation in organization of the exchange;
sign a written agreement to obey the rules and regulations of the BRVM.

To apply for listing on the BRVM, the candidate company must mandate a brokerage firm to assist and advise it. Once the complete application has been received, the BRVM will rule on the company's eligibility and send a copy of the application to the Regional Council of Public Saving and Financial Markets for the necessary notification. The listed company has the following responsibilities:

manage the regulatory framework and relations with investors;
organize annual shareholders meetings, etc.;
inform the exchange and the public of any new fact or modification that might significantly influence the prices of its securities.

NB: For further information, please contact the BRVM, its national branch offices or a brokerage firm.

BRVM Indexes

Two BRVM market indexes represent the activities of stock market shares.

The BRVM Composite

BRVM Composite

The BRVM Composite is a stock index calculated from the value of each stock on the Bourse Régionale des Valeurs Mobilières, or BRVM. The BRVM is organized into 7 sectors....

comprises all securities listed on the exchange.

The BRVM 10 comprises ten of the most active companies on the exchange.

Formulation and selection criteria for the BRVM Composite and BRVM 10 are based on the leading global market indexes, especially the FCG index of the International Finance Corporation; a World Bank affiliate. The formula for the indexes takes into account market capitalization, transaction volume per session and transaction frequency. Only common shares are used to calculate the indexes.

The concept of liquidity also plays a key role in selecting securities for the BRVM 10. For each one, the average daily transaction volume in the three months preceding the quarterly review must not be less than the median daily transaction volume for all securities. Transaction frequency must always be higher than 50%, and the security must be traded at least one out of two times during the three-month study period.

The indexes are automatically generated by the BRVM trading system and circulated after every trading session. The BRVM 10 is also reviewed four times a year (first Monday of January, April, July and October ), and the BRVM Composite after every new listing so it can keep pace with the growth of the Regional Financial Exchange.

MARKET INTEGRITY AND INVESTOR PROTECTION

See presentation on DC/BR

MARKET INFORMATION

Market information

Information concerning the Bourse Régionale des Valeurs Mobilières (prices, volumes, dividend payments, financial statements of listed companies, etc.) is available via many channels, such as:

the official newsletter (Bulletin Officiel de la Côte - BOC) available at the end of every trading session at the BRVM head office, national branch offices and from brokerage firms;

the Quarterly Review available at the end of every quarter at the BRVM head office, national branch offices and from brokerage firms;

information resellers with which the BRVM has signed partnership agreements, such as Reuters, and others to be announced;