London Stock Exchange welcomes The Dominican Republic Securities Exchange and Delegation
The London Stock Exchange welcomes the Dominican Republic Securities Exchange and a delegation of senior Dominican capital market professionals, celebrating the IV Dominican Week in the UK, led by the Dominican Embassy to the United Kingdom and the British Chamber of Commerce. To mark this historic event Mr. Felipe Amador, Executive-Vicepresident and General Manager of the Dominican Securities Exchange, opened trading at the London Stock Exchange this morning. Mr. Amador said, “the delegation is very excited to explore business relations and investment partners that will help developing the Dominican Republic capital markets through state-of-art infrastructure, new trading products and broad access to the international markets”.
The delegation was also integrated by other senior executives promoting the Dominican Capital market: Juan Ernesto Jimenez, Intendant of the Dominican Republic Superintendency of Securities (SIV); Diego Torres, General Manager of BHD Leon Puesto de Bolsa, Brokerage Firm; Guillermo Arancibia, Country Manager of JMMB Puesto de Bolsa, Brokerage Firm and Juan Gabriel Guzman, Treasury Director of Inversiones y Rersevas Puesto de Bolsa, Brokerage Firm. The Dominican Republic is mostly a fixed income capital market with closed-end funds products developing rapidly. The market includes 21 brokerage firms, 26 issuers (public and corporate) and 9 investment funds managers. The first IPO was approved in 2014 and it is expected for 2015 to have the first company listed and trading equity on the Exchange.
Pension funds have over USD7.5 billion in assets under management growing at 30% per year and are in great need of new investment alternatives. In 2014, the capital raised in the primary market more than doubled compared to 2013, reaching over DOP16.0 billion (USD375 million) of raised capital. Also, and after a record year of trading volume in the secondary market in 2013, which grew by 200%, in 2014 the Exchange had another record year of trading volume in the secondary market with approximately DOP150.0 billion (USD3.5 billion) negotiated.
Last year, was also a period of key milestones for the Dominican Republic Securities Exchange with the launch of a new state-of-the-art multi-asset trading platform (SIOPEL) , the coming to market of the first price vendor service and the publication of the first Government Bond Index by the Exchange.
In addition, it was a year highlighted by substantial roundtables with the regulator and private sector in order to modify the main Capital Market Law to allow for new vehicles and better market infrastructure.
The 2015 outlook for the Dominican capital market includes the introduction of new products, a clearing house and the start of the Dominican Republic common equity market.