Organization of the regional financial market

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Au début des années 90, la libéralisation de plus en plus poussée des économies de la zone monétaire ouest africaine exigeait une adaptation des mécanismes de régulation de l’économie, notamment le recours aux instruments indirects de gestion de la monnaie et de mobilisation de l’épargne. La création d’un espace financier commun à l’ensemble des pays de la sous-région de l’UMOA apparaissait comme un moyen de renforcement de l’intégration régionale pour un développement des échanges commerciaux entre les pays membres. En outre, la mise en place d’un marché financier régional en Afrique de l’Ouest figurait déjà dans le traité du 14 novembre 1973 constituant l’Union Monétaire Ouest Africaine (UMOA). En 1991, les autorités monétaires de la sous-région vont entamer des réflexions en vue de la mise en place d’un marché financier unique et efficace pour l’ensemble des pays de l’Union. Ces travaux préparatoires pour la création d’un marché financier régional en Afrique de l’Ouest ont été menés à l’initiative de la Banque Centrale des États de l’Afrique de l’Ouest (BCEAO) avec le concours de la Banque Mondiale, de United States Agency for International Development (USAID) et de l’Agence Française de Développement (AFD). Cette grande réforme s’est faite sur les cendres de la Bourse des Valeurs d’Abidjan (BVA) qui existait depuis 1974 par la Côte d’Ivoire.

Le 17 décembre 1993, le Conseil des Ministres de l’UMOA décide de la création d’un marché financier régional et donne mandat à la BCEAO de conduire la phase conceptuelle du projet. Le 18 décembre 1996, soit 3 ans après, les travaux aboutissent à la constitution, à Cotonou, de la Bourse Régionale des Valeurs Mobilières S.A. (BRVM) et du Dépositaire Central/Banque de Règlement S.A. (DC/BR). Quelques mois plus tôt, le 3 juillet 1996, par décision du Conseil des Ministres de l’UMOA, l’Autorité de Régulation du Marché financier de l'Union Monétaire Ouest Africaine (UMOA) voyait le jour sous le nom du Conseil Régional de l’Epargne Publique et des Marchés Financiers (CREPMF) avant de devenir en Janvier 2023 « l’Autorité des Marchés Financiers de l’UMOA » (AMF-UMOA).

These institutions did not actually start their activities until September 16, 1998, when the Regional Stock Exchange replaced the Abidjan Stock Exchange, already endowed with 35 companies whose quotation took off again on the basis of the last price.

Dans sa dynamique de développement, la BRVM a intégré en 2016 le prestigieux indice MSCI MARKET FRONTIER à titre de marché frontière à rendements attractifs. Et depuis décembre 2022, elle est désormais interconnectée à d’autres bourses africaines (Maroc, Egypte, Nigéria, Île Maurice, Kenya, Afrique du Sud) à travers la première phase de l’AELP (African Exchanges Linkage Project), le projet d’interconnexion des bourses africaines. Ce projet d’envergure continental, à l’instar de la ZLECAF, a connu un démarrage effectif en novembre 2022. Et le 07 décembre 2002, à Abidjan, FINANCE GESTION ET INTERMEDIATION (UMOA) a eu l’insigne honneur d’effectuer les premières transactions en direct et en réel sur cette plateforme avec DYER AND BLAIR , courtier du Kenya.

En conclusion, le Marché Financier Régional est un marché dynamique, réglementé qui a pour objectif d’être un puissant vecteur de développement économique par sa contribution au financement de l’investissement public et privé.

Les choix d’organisation du Marché ont privilégié d’une part la simplicité de l’organisation, notamment par la limitation du nombre d’opérateurs, la sécurité du fonctionnement par la conformité aux standards internationaux, et l’évolutivité du système mis en place. D’autre part, l’organisation repose sur le souci des Etats de l’UEMOA de garder un droit de contrôle sur les acteurs et les opérations, afin de protéger les épargnants, d’orienter les flux de capitaux et de protéger le Marché naissant dans le respect de l’économie libérale. Le fonctionnement du marché est donc partagé entre un pôle public et un pôle privé.

Les options organisationnelles se retrouvent dans la définition de deux (2) catégories d’intervenants directs : les institutionnels et les commerciaux.

 

Les intervenants institutionnels regroupent L'Autorité des Marchés Financiers de l'Union Monétaire Ouest Africaine (AMF-UMOA), la BRVM et le Dépositaire Central – Banque de Règlement (DC/BR).
The Regional Council for Public Savings and Financial Markets (CREPMF)

Le AMF est un organe de l’Union (UMOA) doté de la personnalité morale, et constitué par une convention entre les Etats membres. C’est l’autorité supérieure du Marché Financier Régional (MFR) dont les missions sont: l’organisation et la protection de l’appel public à l’épargne, l’habilitation, le contrôle des structures de gestion du Marché ainsi que des intervenants commerciaux, la surveillance de la régulation des opérations de bourse, la définition et la proposition d’orientation pour améliorer le fonctionnement du Marché, et la prise de sanctions administratives, pécuniaires, disciplinaires ou pénales à l’encontre des contrevenants aux dispositions réglementaires du MFR. Le financement de l'AMF-UMOA est assuré par les Etats en sa qualité d’organe de l’Union et par les facturations des habilitations, visas, agréments, etc.
The Regional Stock Exchange (BRVM)

The BRVM is a financial institution constituted in the form of a Stock corporation with capital distributed among regional private shareholders, financial institutions and the States of the region. Management and Intermediation Companies (SGI) are required to subscribe and hold at least 4% of the capital of the Stock Exchange and the Central Custodian. No shareholder can hold more than 10% of the capital of the Regional Stock Exchange.

he headquarters of the BRVM which is located in Abidjan in Côte d’Ivoire is the only listing place for securities in the UEMOA zone. The BRVM performs several functions. It manages the market by centralizing orders, quoting securities, distributing market information, promoting the market and activating the guarantee fund. A National Antenna of the Stock Exchange is settled in each of the countries of the Union and its main functions are to represent the central structures, promote the market, prospect for new issuers, connect operators at a lower cost to the central system, ensure equality. Economic and functional stakeholders, forward the information to the central site.

The BRVM and its branches provide services on behalf of brokerage firms and issuers. These services are invoiced and the commissions deducted ensure the financing of the Stock Exchange
The Central Custodian / Settlement Bank (DC / BR)

The Central Custodian / Settlement Bank is also a specialized financial institution, set up in the form of a Stock Corporation. Its capital is distributed identically to that of the BRVM.

Its headquarters are in Abidjan and are represented in the various States by the Antennas of the Stock Exchange. Its missions are: the dematerialized custody and scriptural circulation of securities, the function of a bank for the settlement of stock market transactions, the keeping and management of securities accounts of brokerage firms and the settlement and delivery of securities.

The financing of the DC / BR is ensured by the commissions on the services rendered to management and intermediation companies, issuers and other investors. Its fees are approved beforehand by the CREPMF.

The commercial facilitators are the Management and Intermediation Companies (SGI), the Estate Companies (SP), the Collective Investment Organizations in Transferable Values ​​(UCITS), the Stock Investment Advisers (CIB) and the Business Providers (AA).

Management and Intermediation Companies (SGI)

The Management and Intermediation Companies, set up as Public Limited Companies, primarily carry out the trading of securities on the stock market and the custody of securities on behalf of clients. On an ancillary basis, they carry out management under mandate as well as financial advice.

Asset management companies (SGP)

Wealth Management Companies are considered to be legal persons who, through investments and stock market negotiations carried out by SGIs, intervene at their discretion in the management of the securities entrusted to them on the basis of a management mandate established with their clients. These companies must not hold the securities and / or funds of their clients.

Undertakings for Collective Investment in Transferable Securities (UCITS)

A UCITS is a financial body which collects savings from economic agents by issuing shares or units. The savings thus collected are used to constitute a portfolio of transferable securities. The UCITS thus channels these savings into the financing of companies, thereby participating in the development of national economies. Two categories of UCITS have been approved on the Regional Financial Market: Investment Companies with Variable Capital (SICAV) and Common Placement Funds (FCP). UCITS are managed by SGOs (UCITS management company).

To improve market liquidity, the BRVM has moved to continuous listing since September 16, 2013. This listing method offers many opportunities to buy and sell a security during a trading day and provides real-time information. , the state of the market or of a value by establishing several courses. It enables rapid order execution and increases liquidity in the stock market. Unlike the fixing which establishes a single equilibrium price per day.

The continuous trading session has 4 phases (pre-opening, continuous trading, pre-closing and last price trading), the sequences of which are as follows (in local time, GMT):

9:00 a.m. – 9:45 a.m.: Pre-opening phase: Accumulation of orders

During the pre-opening phase, orders entered by management and intermediation companies (SGI) in the BRVM quotation system are recorded in the central order book without giving rise to transactions.

The Central Order Book, the theoretical opening price and the volumes likely to be traded at this price are updated each time an order is entered into the system and are broadcast in real time.

9.45 a.m .: Opening fix

On opening, the quotation system compares the orders for each security with a view to their matching. They thus proceed to the opening auction. At the start of the price determination phase, the Central Order Book is momentarily frozen while the matching algorithm is running. At this time, it is no longer possible to enter orders in the quotation system and orders already entered cannot be modified or canceled.

If the match is made within the dynamic authorized reservation thresholds, an opening price is established and disseminated to the market. On the other hand, if the pairing is made outside the dynamic reservation thresholds, the value concerned is reserved for a period, the duration of which is set by instruction from the BRVM. An opening price is determined at the end of the reservation period if the requirements are met.

The opening price is the last theoretical price before the match. In the absence of an opening fixing price, the opening price is the reference price.The reference price is the closing price of the last trading session adjusted in the case of a Corporate Action (for example, in the event of payment of dividends, capital transactions, etc.).

Orders are executed in the Central Order Book in application of the principle of execution priority defined by instruction from the BRVM.

9:45 a.m. – 2:00 p.m .: Continuous negotiation

Once the opening auction has been completed, the continuous trading phase begins until the pre-close.

All orders not executed or remaining after the opening auction are transferred to the continuous trading phase.

During this phase, it is possible to register, modify or cancel the orders. Each new order recorded is immediately compared to the orders available in the opposite direction in the Central Order Book, in order to check whether its execution is possible. Orders already in the order book determine the execution price. Transactions are carried out as and when the counterparties allow it.

Orders are executed in the Central Order Book in application of the principle of execution priority defined by the BRVM Instruction.

2 p.m. – 2:30 p.m .: Pre-closing

The pre-close phase occurs after the continuous negotiation phase. The orders entered are automatically recorded in the Central Order Book without giving rise to transactions. The Central Order Book, the theoretical closing price and the volumes likely to be traded at this price are updated each time an order is entered into the system and are broadcast in real time.

2:30 p.m .: Closing fix

The closing auction process is identical to that described for the opening auction

The closing price is the price resulting from the closing auction. If a closing auction price could not be determined, the closing price is the price of the last transaction carried out during the continuous trading phase. The closing price is the opening auction price or the reference price, in the absence of transactions during the continuous trading phase.

The orders of the central Order Book are executed in application of the principle of execution priority defined by Instruction of the BRVM

2:30 p.m. – 3 p.m .: Negotiation at the last price

The last price negotiation phase takes place after the closing auction. During this phase, it is possible to enter only orders against existing orders for the residual quantity. Orders are executed only at the closing price.

3 p.m. -15.15 p.m .: Market surveillance
3.15 p.m .: Market closes

After the negotiation phase at the last price, the BRVM closes the market and adjusts it, in particular in the event of cancellation of transactions. SGIs can no longer enter, modify or cancel orders. At the end of the adjustment, the market is made official. No changes can be made.

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