In September 2014, the Lima Stock Exchange (BVL) signed the licensing agreement of indexes with S & P Dow Jones Indexes. This alliance includes the activities of distribution, marketing and commercial licensing of all indexes of the BVL family and together in the creation of new indexes according to the market needs. The first initiative was the launch of the new index S & P / BVL Peru Select in December 2014 which is designed to measure the performance of the largest and most liquid shares listed in the BVL.
On May 4, 2015, with the change of the electronic trading platform Millennium IT, the BVL launched its new family of indexes in partnership with S & P Dow Jones Indexes. 11 indexes were released and joined the S & P / BVL Peru Select released in December 2014. These BVL flag indexes, General Index (IGBVL) and Selective Index (ISBVL) became known as S & P / BVL Peru General and S & P / BVL Lima 25, respectively.
It is worth mentioning that all indexes, except for the S & P / BVL Lima 25 changed to a methodology in accordance with international standards and have their composition based on market capitalization adjusted to the free float of its constituents.
The new electronic trading platform Millennium IT was launched on May 4, 2015, after a period of verification and validation stages through internal trial (internal tests) and external trial stages (external tests with the market).
The new electronic trading platform is supported by the London Stock Exchange Group (LSE), and will provide the local, regional and global market a more efficient infrastructure and services in line with the current functional and technological demands of the global market.
This new electronic trading platform, will allow the adaptation to international standards and best practices. In line with this, the attributes that the BVL wants to incorporate by acquiring this new trading platform are as follows: (i) flexibility to configure the different markets in the BVL, (ii) improvements in the types of proposals, (iii) price controls, (iv) more processing capacity of market information, proposals and operations without degrading the time required for distribution among different users
The SMV by Resolution No. 007-2015-SMV / April 1, 2015, empowered the BVL to register foreign securities belonging to representative indexes of stock markets from developed countries, according to the provisions of Annex No. 15 of the aforementioned resolution, thus allowing the registration by request of the BVL itself of ETFs and foreign securities according to the provisions of Annex No. 15.
By Resolution No. 021-2015-SMV SMV / September 1, 2015, the Superintendence of Securities Market authorized the entry of orders via Direct Market Access (ADM) in cash transactions with equity securities registered in the Stock Market, except OPA, OPC, OPI and OPV operations, not being able to use ADM in primary placements, securities reporting transactions and securities lending transactions. It is worth to note that the algorithms are a type of ADM.
The use of algorithms will increase liquidity in the Peruvian stock market, facilitating the entry of proposals and thus promoting the emergence of new investors
a. Tax exemption to Capital Gains - Market Makers
Revenues from the sale of shares and securities representing shares are exempt until December 31, 2018, according to the approval of Act No. 30341 on September 12, 2015 and its Regulations approved by Supreme Decree No. 382- 2015-EF on December 22, 2015.
Also, the aforementioned Law provides that the advance payments for income tax (IR) to be made by market makers and who act in compliance with its function, according to the provisions of the SMV, will take as calculation basis for the advance payment of IR, the difference between the transaction value and its computable cost.
One of the requirements to be eligible for exemption from tax on capital gains is the stock market presence, it should be noted that from January 4, 2016 the BVL calculates and publishes daily on its website and in its Daily Bulletin, the trading presence of shares and securities representing shares pursuant to the provisions of Law No. 30341 and its regulations.
b. Investment Funds for Real Estate Income (FIRBIS)
Firbis regulation appeared in December 2014 with the approval of the RSMV No. 029-2014 by the SMV, which defines its main characteristics and its regulatory framework. Notwithstanding the foregoing, it was pending that the product has similar tax benefits as the Mexican Fibers, which was achieved with the approval of the Legislative Decree (DL) No. 1188, by which income tax is deferred until December 31, 2019; also, the DL mentioned defers the payment of the Alcabala until December 31, 2019, it is worth noting that only those Firbis complying with the provisions of RSMV No. 029-2014 enjoy the sales tax deferral of the IR and alcabala.
The regulatory framework of the new model of securities lending market was established with the approval of Resolution SMV No. 008-2015 on May 2015 providing amendments to the Regulations in transactions of the BVL; while with the amendment to Title VI of AFPs Investment, the previous securities lending model was modified and it allowed AFPs to participate in securities lending market transactions. Thus, changes were made in the operation and regulation of the securities lending market. The main stipulated changes comprise the following: (i) the Pension Fund Administrators (AFPs) may participate in these transactions, as lenders and thus generate additional interest income; (ii) the securities lending will not be freely available to the borrower, but will be used to cover outstanding settlement transactions and short sales; (iii) it will be allowed that the principal guarantee includes equities and fixed income, in addition to cash (before it was only cash); (iv) and finally the valuation and settlement procedures before extraordinary situations or corporate events for lenders and borrowers were simplified, in order to avoid ambiguity and reduce risks by incorporating the instrument as part of their investment strategies.
This product will help to generate cash and increase the supply of products in the market.