APA-Abidjan (Côte d’Ivoire) The Montreal Exchange (MX), one of North America’s leading derivatives exchanges, and the Bourse régionale des valeurs mobilières (Regional Securities Exchange, BRVM), Africa’s 5th largest stock exchange, signed a memorandum of understanding in Abidjan on Wednesday 6 March 2024.
The purpose of the MOU is to implement measures aimed at creating a derivatives market within the West African Economic and Monetary Union (UEMOA). It focuses on technical assistance from the Montreal Exchange
(MX).
It should enable the development of the regulatory framework for the new market, advice on setting up the various entities, in particular the Exchange and the Clearing House, support in technological choices, and training for BRVM teams and the regional financial market ecosystem.
The ceremony was attended by Mrs. Kandia Kamissoko Camara, head of the Ivorian Senate, and her Canadan counterpart Mrs. Raymonde Gagne. BRVM’s two distinguished guests rang the BRMV bell to mark the occasion.
The introduction of a derivatives market at BRVM is expected to contribute to better management of the risks associated with price fluctuations, improved valuation of the underlying securities and enhanced market liquidity.
During the ceremony, Dr. Edoh Kossi Amenounve, Managing Director of BRVM, said that the aim of the new market was to provide investors with suitable instruments for managing the risks in their portfolios.
Dr. Edoh Kossi Amenounve also argued that the derivatives market will also help to improve pricing mechanisms by making the BRVM much more efficient.
Raymonde Gagne, praised the excellent institutional and business relations between Côte d’Ivoire and Canada and welcomed the fruitful partnership that has linked the two exchanges for several years.
The Montreal Stock Exchange was the first stock exchange in the world to provide technical assistance to the BRVM for the start-up of its activities, thanks to funding from the former Canadian International Development Agency (CIDA) in 1998.
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