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Market Passport

Colombia

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Market information

Supporting you

Key market information

  • Local currency

    Colombian
    Peso (COP)

  • 2017 GDP

    USD
    309bn

  • Time zone

    GMT
    -5 hours

  • Numbering
    system

    ISIN

  • Main stock
    exchange index

    COLCAP
    COLEQTY
    COLIR
    COLSC

Key market figures

Market capitalisation USD 121bn
Number of listed companies 69
2017 value of share trading USD 13.32bn
Number of ETFs listed 3
2017 value of bonds trading USD 309.28bn
Number of bonds listed 751
Number of futures contracts traded in 2017 0.42m
Number of options contracts traded in 2017 n/a

Local market infrastructures

Equities Corporate bonds
Trading BVC BVC – SEN
Clearing BVC BVC – SEN
Settlement and custody BVC – DECEVAL BVC – DECEVAL – DCV
Cash leg CUD (Central Bank High Value Payments System) CUD (Central Bank High Value Payments System)

Local market authorities and regulators

  • Banco de la Republica is the central bank
  • Superintendence of Finance (SFC) is the finance regulator
  • Direccion de Impuestos y Aduanas Nacionales (DIAN) is the tax authority
  • Autorregulador del Mercado de Valores de Colombia (AMV) is a self-regulatory organisation

Market practices (ALL TIMES ARE LOCAL)

SECURITIES
Settlement cycles
Equities T+3
Bonds T+0
Up to T+3
Cash T+0 – T+3
Cut-off times
Equities 6.00pm
Bonds 6.00pm
Cash 6.00pm
Omnibus account/securities No
Omnibus account/cash Yes
Pre-matching Yes
Irrevocable pre-matching No
Short selling Yes
Cash settlement/DVP Yes
Securities lending Yes
Foreign ownership limits Yes
Tolerance limits

Standard tolerance limit is USD 25.00.

Examples of market penalties

The failing brokerage firm must pay a penalty to its counterparty and another penalty to the Securities Exchange. It is also suspended from trading in the trading session (depending on the kind of failing trade). The Securities Exchange notifies the AMV and the SFC.

Buy-in practice

There are no formal buy-in procedures. For equities, the stock exchange may initiate an informal buy-in anytime between T+4 and T+5 and pass on the costs to the defaulting counterparty. If an extension to the settlement cycle was requested, the buy-in is initiated on T+6. For fixed income, settlement can be postponed until T+3.

If this maximum timeframe is exceeded without buy-ins, the trade is cancelled, and the BVC or the Central Bank will penalise the failing entity.

BNP Paribas customers benefit from free access to more detailed market information on our NeoLink webportal. Click here to access the Market Profiles or contact your relationship manager.

Supporting you

BNP Paribas Securities Services in Colombia

For the third consecutive year, we lead the Colombian market (2015-2017) in the Global Custodian’s Agent Banks in Emerging Markets (ABEM) Survey.

Our main services

Core

We offer local custody to domestic and foreign institutions. Our core services include settlement, safekeeping, corporate actions, proxy services, cash and collateral management.

Market-specific

  • Equity repo settlement through the local CCP since 2017, improving counterparty risk management
  • Reporting of forex cash flows of foreign portfolio investors to the Central Bank, in accordance with local regulation
  • Global custody access point

What makes us different

  • One of the few global custodians offering a large in-house proprietary sub-custody service
  • Access to our global custody platforms through a centralised access in Colombia for real-time, multi-lingual operational assistance, improving transactional efficiency
  • Contribution to key initiatives designed to improve the Colombian regulatory framework. These have included the authorisation, in 2016, for foreign portfolio investors to use omnibus cash accounts when acting in the Colombian market

SELECTED MARKET RECOGNITION

  • Global Custodian Agent Banks in Frontier Markets Survey (2017): Global, Market and Category Outperformer in Colombia
  • Global Investor Sub-Custody Survey (2017): ranked first – unweighted

A sound partner

BNP Paribas Securities Services Sociedad Fiduciaria S.A. is a wholly-owned subsidiary of BNP Paribas S.A. employing 38 people in 2018. We have offered securities services in Colombia since 2013 and have attracted both non-resident and domestic clients thanks to our service quality.

Contact

For more information, please contact your relationship manager or
Francesco Rossini, Head of Client Development Hispanic LatAm
francesco.rossini@bnpparibas.com

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