Caracas Stock Exchange

The Bolsa de Valores de Caracas C. A. ( Caracas Stock Exchange ) (BVC ) is the only securities exchange of Venezuela based in Caracas

Organization

BVC is a private company owned by 63 shareholders. The BVC is a member of the Association of Latin American stock exchanges Latin American Federation of Stock markets. Traded stocks, bonds and derivatives.

Trade

Trading on the BVC is exclusively electronically in February 1992. Since 2 July 1999, the electronic trading system SIBE ( Sistema Integrado Bursatil Electrónico ) is used.

April 2007 60 companies were listed on the BVC. However, with not even the half of a regular exchange trading. Since the mid- 90s decrease the number of listed companies and the sales. The reasons for this are the flight of capital, listing as ADRs on U.S. exchanges, the economic crisis and the policy of nationalization by the government of Hugo Chávez. While in 1997 a day 25 to 30 million dollars have been implemented, the daily trading volume in 2000 fell to less than 1 million dollars.

However, what grew was trading in Venezuelan government bonds. This feature thanks to oil revenues, despite the socialist policies of the government, a high credit rating.

The development of the comprehensive 16 shares Venezuelan stock index Indice Bursatil Caracas, suffered from the economic policy. But the announcement by Chavez to nationalize two of the largest companies on the BVC, the telecom company CANTV and Electricidad de Caracas utilities, led to a slump by a third in one day

Exchange

The trading on the BVC is subject to the Venezuelan capital market law Ley de Mercado de Capitales de Venezuela of 1975 ( amended in 1998 ), the Trade Law, Ley de Caja de Valores and the Bank Organic Law de Crédito Público.

Securities and Exchange Commission is the National Securities Commission Comisión Nacional de Valores (CNV ), which is subordinated to the Ministry of Finance. This issues the Exchange Rules Reglamento Interno y el Reglamento de Transacciones de la Bolsa.

History

The history of the stock market in Venezuela dates back to the year 1805. Don Bruno Abasolo and Don Fernando Muñoz Key then founded the "Casa de Bolsa y Recreación de los Comerciantes y Labradores " in Caracas.

BVC itself was founded on January 21, 1947. On 21 April of the same year she took on trade operation. In 1974, she teamed up with the only competitor and is today the only stock exchange in Venezuela. Since May 6, 1976, she bears its present name.