Dépositaire Central/Banque de Règlement (DC/BR) of UEMOA

2 – Organization and features of BRVM

3 – BRVM recent development

4 – The Regional CDS organization

6 – The Regional CDS recent development

5 – The Regulatory framework

1 – The West African Economic and Monetary Union

7 – 2014 Outlook

1 – The West African Economic and Monetary Union

1.1 History

1 – The West African Economic and Monetary Union1 – The West African Economic and Monetary Union (WAEMU)

The West African Economic and Monetary Union (also known as UEMOA fromits name in French, Union économique et monétaire ouest-africaine is anorganization of eight West African states.

It was established to promote economic integration among countries thatshare the CFA franc as a common currency.

UEMOA was created by a Treaty signed at Dakar, Senegal, on 10 January1994, by the heads of state and governments of Benin, Burkina Faso, Côted’Ivoire, Mali, Niger, Senegal, and Togo.

On 2 May 1997, Guinea-Bissau, a former Portuguese colony, became theorganization’s eighth (and only non-Francophone) member state.

UEMOA is a customs union and currency union between the members. Its objectives include the following:

Greater economic competitiveness, through open markets, in addition to the rationalization and harmonization of the legal environment

The convergence of macro-economic policies and indicators The creation of a common market The coordination of sectoral policies The harmonization of fiscal policies

1 – The West African Economic and Monetary Union (WAEMU)

NigerMali

Burkina Faso

BeninPopulation: 9,0 million

GDP 2011 : 3444,303 Billion FCFA

GDP 2012 : 3762,684 Billion FCFA Investment 2012 : 772,665 Billion FCFA

Burkina FasoPopulation: 16,3 million


GDP 2012 : 5546,285 Billion FCFAInvestment 2012 : 1245,614 Billion FCFA

Côte d’IvoirePopulation : 22,7 million GDP 2011 : 11 359,822 Billion FCFA GDP 2012 : 12 460,064 Billion FCFA Investment 2012 : 1745,957 Billion FCFA

Guinea BissauPopulation : 1,5 million



MaliPopulation : 15,4 million GDP 2011 : 5 016,968 Billion FCFA GDP 2012 : 5 140,406 Billion FCFA Investment 2012 : 967,981 Billion FCFA

NigerPopulation : 15,7 million GDP 2011 : 3 004,395 Billion FCFA GDP 2012 : 3 567,416 Billion FCFA Investment 2012 : 1 693,842 Billion FCFA

Togo Population : 6,0 million



Senegal

Population : 12,8 million

GDP 2011 : 6 816,444 Billion FCFA

GDP 2012 : 7 225,049 Billion FCFA Investment 2012 : 2 195,806 Billion FCFA

WAEMU GDP : 40 063,494 Billion FCFA

1.1 WAEMU Key indicators (1/2)

1.1 WAEMU Key indicators (2/2)

7.53

11.09

24.92

0.97

10.28

7.13

14.45

3.76

- 5.00 10.00 15.00 20.00 25.00 30.00

Benin

Burkina Faso

Côte d'Ivoire

Guinea Bissau

Mali

Niger

Senegal

Togo

8,840,000

15,710,000

22,890,000

1,450,000

15,100,000

14,860,000

12,340,000

5,870,000

0 10,000,000 20,000,000

Benin

Burkina Faso

Côte d'Ivoire

Guinea Bissau

Mali

Niger

Senegal

Togo

110.9

37.1

417.9

8.8

147.6

946.9

237.2

41.1

0 500 1000

Benin

Burkina Faso

Côte d'Ivoire

Guinea Bissau

Mali

Niger

Senegal

Togo

Population

FDI 2010 (million USD)

1 – The West African Economic and Monetary Union1 – The West African Economic and Monetary Union


The West African Regional Stock Exchange, the BRVM started its activities onSeptember 1998.

It was unanimously set up by the West African Economic and Monetary Union(WAEMU) countries, namely, Benin, Burkina Faso, Cote d'Ivoire, Guinea Bissau,Mali, Niger, Senegal and Togo.

December 1993 : Project of creation of the Regional Financial Market adopted by the Council of Ministers of the WAEMU

January 1994 : Creation of the WAEMU

December 18, 1996 : Establishment of the BRVM and the CDS (DC/BR) (Privately owned)

September 16, 1998 : The BRVM and the DC/BR started operations (centralized trading with a cycle of settling / clearing at T+5) )

24 March 1999 : Decentralized electronic trading system

12 November 2001 : Daily trading

July 2007 : Settlement cycle from T+5 to T+3

16 September 2013 : Continuous trading

2.1 History


Public EntityCapital Markets Authority:

Regional Council for Public Savings and Capital Markets(CREPMF)

Private EntityMarket Operators

• Regional Stock Exchange (BRVM);

• Regional Dépositaire Central/Banque de Règlement (DC/BR)

Market intermediaries

• Brokerage Companies (SGI);

• Asset Management companies;

• Wealth management Companies (SGP);

• Business providers;

• Securities Advisors;

• Sales people;

Regulates the financial market of the WAMU;

Authorizes financial transactions on the primary market;

Controls the secondary market and the intermediaries.

2.2 Organization

Fully demutualized stock exchange structure

1 regional electronic stock Exchange for the 8 countries of WAEMU

World-class stock exchange infrastructure across the Region

BRVM operates under the regulatory oversight of the Capital Markets Authorities (CREPMF)

Modern and disclosure-based Listing Rules with an Automated Trading Systems

BRVM became a affiliate member of the World Federation of Exchanges (WFE) in 2012

Electronic link with Regional CDS depository which complies with G30 Standards


2.3 Features

From 1998 to December 2013 : 3 542 billion FCFA were raised in the primarymarket.

3.1 Primary market (1/1)


Foreign placements8,07 billion FCFA

0,23%

Governments bonds1 919,64 billion FCFA

54,19%

Public and Private entities991 billion FCFA

27,98%

Public offer on equities 623,61 billion FCFA

17,60%

3.2 Secondary market (1/6)


BRVM 10 et BRVM All shares(2008 –2013)

Sectors indices (2013)

192.08

143.6

182.96

158.49

246.34

178.17

132.05

159.1138.88

232.02

0

50

100

150

200

250

300

2008 2009 2010 2011 2012 31-Jan-13 31-Dec-13

BRVM 10 BRVM Composite

+35,66 %

+40,64 %

31/12/2013

31/12/2013

+126,21%

+90,48%

+55,73% +52,62%+43,05% +39,87%

6,54%-20.00%

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

140.00%

BRVM-Agriculture

BRVM-Transport

BRVM-Finances

BRVM-Distribution

BRVM-Industrie

BRVM-Autres

SecteursBRVM-

Services Publics



Market Capitalisation : bond market(2008 – 2013)

Market Cap : Equity market(2008 – 2013)

41,10 %

3,337

2,808

3,471

3,177

4,031

5,001

5,633

0

1,000

2,000

3,000

4,000

5,000

6,000

2008

2009

2010

2011

2012

31-Ja

n-13

27-M

ay-1

3

31-D

ec-1

3

+68,8 %

- Dec 31st, 2012 Market cap exceeded 4k billion FCFA

- May 27th, 2013 : Market cap exceeded 5k billion FCFA

+108,34 %

515

457

1,0011,073

0

200

400

600

800

1,000

1,200

2008

2009

2010

2011

2012

18-A

pr-1

3

31-D

ec-1

3

Billi

on - April 18th, 2013 : Market cap exceeded 1k billion FCFA

29,12 %



Total market Cap(2nd january 2013 – 31st décember 2013)

+39,01 %

831(2 jan 2013)

1 073(31 dec 2013)

3 992(2 jan 2013)

5 633(31 dec 2013)

4 824(2 jan 2013)

6 706(31 dec 2013)

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Bill

ion

Total

+29,12 %

+41,10 %

EQUITY MARKETBOND MARKET

Turnover 1998-2013



65

231

111

81

146

193

0

50

100

150

200

250

2006

2007

2008

2009

2010

2011

2012

2013

Billi

ons

+ 33 %

+196,9 %



Most traded by value in 2013

4,81 billion FCFA

5,36 billion FCFA

7,28 billion FCFA

12,94 billion FCFA

84,61 billion FCFA

CIE CI

SAPH CI

SGBCI

ONATEL BF

SONATEL SN

Most traded by volume in 2013

ETI T

G

SON

ATEL

SN

ON

ATEL

BF

PALM

CI

SAPH

CI

54,427,845

4,910,275426,098 214,884 158,273



5 highest 5 lowest

UNIWAX CI(+550 %)

SERVAIR CI (+142,21 %) NEI CEDA

(+133,46 %) BOLLORE (+128,57 %) VIVO ENERGY

(+120,51 %)

SICOR CI(-7,50 %) CFAO

(-14,78 %)SAPH

(-15,04 %)SOGB

(-17,69 %)TRITURAF (-38,75 %)

-200

-100

0

100

200

300

400

500

600

4 – The Regional CDS Organization

Dépositaire Central/Banque de Règlement of WAEMU

4 – The Regional CDS organization

One CDS for 8 WAEMU countries. Operational since September 1998 Fully demutualized CDS Provides Depository, Clearing and Settlement services to market

brokers and custodian banks Manages equity and debt instruments Full member of ANNA covering 8 countries of WAEMU in 2013 Efficient system that has greatly reduced risks:

- Meets international standards

- Securities are dematerialized (+ISIN numbers issuance)- DVP (T+3)- Net settlement of funds with central bank money- Settlement guaranteed through a Market Guarantee Fund- Participants settlement limit based on their contribution to theGuarantee fund.- Buy-in procedures in the event of securities settlement failure

No failed trades until now.

5 – Regulatory framework of the Regional CDSDépositaire Central/Banque de Règlement of WAEMU

The Dépositaire Central/Banque de Règlement of WAEMU Act1998 provides the legal framework for the operations of the CDS.

The object of the Act is “to provide regulation of a central,depository, clearing and settlement service in order to facilitatedealings in securities in the WAEMU.”

The Dépositaire Central/Banque de Règlement of WAEMU isguided in its day-to-day management by the CDS Rules andOperational Procedures.

The Dépositaire Central/Banque de Règlement of WAEMU is underthe regulatory oversight of the Capital Markets Authority (ConseilRegional de l’Epargne Publique et des Marchés Financiers).

5 – Regulatory framework of the Regional CDS


Dépositaire Central/Banque de Règlement of WAEMU

Assets under management in the CDS books at the end 2013

6.1 CDS activities (1/2)


AUM (31 December 2013)

Listed equities5 633,4

billion FCFA (80,46%)

Non Listed equities

550 billion FCFA

(0,01%)

Listed bonds1 072,7

billionFCFA (15,32%)

Non Listed bonds

294,8 billion FCFA

(1,79%)

…Total AUM end of 2013 = 7 001 billion FCFA

AUM(2012 – 2013)

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

+39,53 %

5 017 31/12/2012

7 001,5 29 nov. 2013

At the end of 2013, 368,98 were processed by the CDS.

Corporate actions end of 2013

6.2 CDS activities (2/2)


+38,7 %

0

50

100

150

200

250

300

350

400

Bill

ion

Interest payments on listed bonds

68,88 billion FCFA

Dividend payments

79,49 billion FCFA

Interest payments on unlisted bonds 3,94

billion FCFA

Repayments on listed bonds

202,774 billion FCFA

unlisted bonds repayments

13,894 billion FCFA

368,9831/12/201

3

266,0331/12/2012

Members Total

Issuers

Listed equities 37

92Unlisted equities 2

Listed bonds 35

Unlisted bonds 18

Brokers

Benin 4

21

Burkina Faso 2

Côte d'Ivoire 10

Mali 1

Niger 1

Senegal 2Togo 1

Custodian banks 6

Total members 119


6.3 CDS participants

7 – 2014 Outlook

Focus on the listing of new companies in 1st and 2nd board

Launch a 3rd board for SME’s, growth enterprises and star ups

Implement a new CDS system

Draft a project for the implementation of Stock lending/borrowing

The launch of the ECOWAS stock exchange integration project

Signing of MOUs with the Private Equity Funds to build pipeline of new listing

Signing MOUs with the Chambers of Commerce to leverage on their experience and

database of companies to bring more companies in the market

Forecasting 2014 year, BRVM will engage in various projects to boots over the stock exchange.

7 – 2014 Outlook

THANK YOU

Dépositaire Central/Banque de Règlement (DC/BR) of UEMOA · The West African Economic and...

Documents

Transcript of Dépositaire Central/Banque de Règlement (DC/BR) of UEMOA · The West African Economic and...