BOA Capital’s online exchange now allows orders to be placed directly with the West African Regional Exchange. Other platforms should follow in the coming months, likely to improve the market’s liquidity and attractiveness.
Busy week for the regional securities exchange. In addition to two new major bond lines, the BRVM has been welcoming – since September 16 – its first online stock exchange platform. It is offered by BOA Capital, a local management and intermediation company (SGI).
The launch of this platform, BOAKSDirect, took place by videoconference, in the presence of Ripert Bossoukpe, Secretary General of the Regional Council for Public Savings and Financial Markets (CREPMF), the regulatory authority, and of Edoh Kossi Amenounvé, general manager of the BRVM. Coincidentally, September 16 also marked the anniversary of the BRVM, whose first listings date back to 1998.
This tool will allow SGI clients to issue stock market orders on the regional stock market in just a few clicks, and to consult their portfolio at any time. Financial information on listed securities and economic news in the UEMOA zone will be disseminated there. A major innovation, Union investors will now be able to buy or sell shares, without direct recourse to their SGI.
According to Edoh Kossi Amenounvé, “the online stock market allows” among other advantages, to improve the liquidity of the market and to reduce transaction costs”. He hopes that by 2020, at least 10% of stock transactions will go online. To do this, encourage other SGIs to embark on this dynamic and complete their digitization by January 2021, at the latest.
Gradual modernization!
BOAKSDirect presents itself as a secure online stock exchange platform entirely designed to offer intuitive digital fluidity to its users. This is “a historic development,” commented Edoh Kossi Amenounvé. While the secretary general of CREPMF declared: “Through this launch, I have the hope of seeing a full operationalization of the online stock exchange on the regional financial market of WAMU in January 2021, in accordance with the timetable agreed in July with stakeholders.” To do this, he “urges the actors to get more involved and to promote the sharing of experience in order to facilitate the effective enrollment of all SGIs by the set deadline.”
Technically, the Stock Exchange has moved over the years from centralized electronic listing (entry of orders at the BRVM) to decentralized electronic listing (entry of orders by SGIs) to result, to date, in the transmission of orders. from cell phones, tablets etc. client.
Orders are routed to the BRVM (Online Stock Exchange) trading system. The BRVM sees it as a technological development which “strengthens its positions in the concert of innovative stock exchanges”. It has three main objectives: improving market liquidity; reduction of order execution times; lower transaction costs.
Two major bond lines!
The stock market hopes that the development of mobile telephony, dedicated applications, and telecommunications infrastructure, will make it possible to popularize the online stock market. This, both for transactions in shares and bonds of the eight countries of the WAEMU.
That same day, the bond loan of 100 billion CFA francs, successfully carried out in the heart of the summer by the telecoms operator Sonatel – a record loan for a West African company – entered the stock market. . The securities are listed in the BRVM bond compartment under the symbol SNTS.O2.
This listing on the secondary market comes to sanction a successful issue in the midst of the Covid-19 crisis; it constitutes “a strong signal from regional and international investors to show their confidence in the resilience capacities of our economies, particularly in the robustness of the fundamentals of our large companies”, comments the BRVM. Sonatel is already the number one stock market in the BRVM, weighing more than CFAF 1,215 billion (€ 1.85 million) in market capitalization.
Edoh Kossi Amenouvé recalls that this loan “confirms Sonatel’s desire to constantly strengthen its infrastructure in order to offer innovative and high-quality products and services to the populations for more inclusive economic and social development”.
In this context, the leader considers that “the BRVM is a source of opportunities for the private sector of the WAEMU which should be more interested in it for a better creation of wealth for the populations of our Union who aspire to a more development. faster and more inclusive”.
Finally, September 18 marks the first listing day of the “FCT NSIA Banque 7% 2020-2025” loan in the bond compartment. NSIA Banque CI, in its search for financial mechanisms allowing it to refinance its portfolio of receivables, in order to optimize its intervention capacity, has opted for securitization of receivables, explains a stock market document.
Hence the creation of this mutual fund for debt securitization, designed with the management company Africa Link Capital Titrisation. The distribution of securities on the primary market took place from February 7 to March 6, 2020. The FNSBC.01 title has a reference price of 10,000 CFA francs.
