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Report: President Macri pushes for approval of proposed Argentine stock exchange, B&MA

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Report: President Macri pushes for approval of proposed Argentine stock exchange, B&MA

Argentina'sproposed new stock exchange, Bolsas y Mercados Argentinos, or B&MA, which ispending approval from the country's securities regulator, will give investors moreoptions and promote economic development, President Mauricio Macri said during anevent to celebrate the anniversary of the Bolsa de Comercio de Buenos Aires, orBCBA, Cronista reported July 13.

The creationof the B&MA, which was initially agreed on in 2014, will merge the BCBA withthe Buenos Aires securities market, or Mercadode Valores de Buenos Aires SA, which is known as the Merval, as wellas the Mercado de Valores de Córdoba, and other provincial markets.

The presidentof the BCBA, Adelmo Gabbi, said in June that the new exchange would be operationalin the "coming weeks," Ambito.comreported at the time. But first it needs to be approved by securities regulatorCNV. The Macri government has tasked Nicolas Caputo, who took over as vice presidentof the Merval in April, with obtaining this approval, Cronista reported.

The integrationof the various markets will significantly increase the capitalization of the exchange,which will facilitate foreign investment in Argentina since investors are attractedto markets with higher capitalizations, the report said.

"Itcannot be that the stock market capitalization is less than 10% of GDP, almost aquarter of other countries in the region and only 1% of Argentines save in thisinstitution," President Macri was quoted as saying.

It willalso free up about 50% of the capital currently used for guarantees, which meansthe volume of business could double if this money is reinvested, Cronista reported.

Finally,the new exchange will allow investors from any part of Argentina or the world toinvest in Argentine stocks on the internet, the report noted.