Guía de Emisores Acciones BVC ● Guide of Listed Companies 2014 Guía de Emisores Acciones BVC ● Guide of Listed Co | Page 39

Among the benefits the BVC sees
in the program is the ability to develop a better environment of protection for minority investors, due to
the proper development of prices,
and a better scenario for Colombia
to be internationally positioned as an
eligible market.

bid and offer spread of icolcap
was reduced from 6.32% in september
of 2013 to 0.38% last march
March with the enrollment of the
first entity to the program: the market maker of iShares COLCAP ETF.
Colombia became the fourth Latin
American country to implement it.
Mexico, Brazil and Chile are the other
three countries to have done it.
Now, with three partners behind
the operation of the first market
makers program: BlackRock, BTG
Pactual Comisionista de Bolsa and
Cititrust, the ETF that replicates the
trading of the main index of the BVC
will have an entity constantly generating trades for its own benefit and for
the benefit of the market.

The program is precisely that,
when there is an agent of the market
that commits to providing purchase
and sale prices simultaneously for a financial asset, more interest is created
among investors who use the securities market and the spread between
purchase and sale prices in the market
on a particular security is closed, generating more operations and liquidity.
In addition, the objective of this
program is to drive activity in the
trade of other stocks that are not
generally the most traded of the
market and that therefore need an
additional boost.

Today in Colombia, the concept
of market maker was introduced
with iShares COLCAP ETF, which
replicates the trends of the COLCAP index and brings together the
20 stocks with the highest capitalization in Colombia.
“Liquidity improvements directly
benefit the final investor. Greater liquidity means greater traded volume,
smaller purchase and sale price margins (lower costs for investors) and in
general, a better operation experience.” stated Diego Mora, BlackRock’s
director in Colombia. He said that he
trusted that the successful example
seen in ICOLCAP would ensure that
other stocks also had market makers,
and that this would result in improved
liquidity for the entire market.
As to BTG Pactual Sociedad Comisionista, who acts as market maker,
reduced the bid and offer spread of
ICOLCAP from 6.32% in September
of 2013 to 0.38% last March, after the
program went into effect.
According to Juan Luis Franco,
CEO of BTG Pactual Colombia, “this
meant that the ICOLCAP became
one of the most accessible equity
market instruments to investors. In
comparison, the market average had
a difference of 0.50%, from the time
of sale to the time of purchase, in the
same period.”
Lastly, Cititrust, as the manager
of the fund, sees “quite satisfactory”
results, according to its president, Armanda Mago Vicentelli, who advised
that after the system was put into
place, the ICOLCAP became “the fifth
instrument with the narrowest spread
margin spread in all of the BVC.”
In a short time, the achievements
of the market makers could not be
better and that is proof that the decision to implement this idea in Colombia was the right one.

PERSPECTIVAS

Team achievemenT

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