Instruction No. 2/97 on the Authorization of the Regional Securities Exchange

WEST AFRICAN MONETARY UNION REGIONAL COUNCIL FOR PUBLIC SAVINGS AND FINANCIAL MARKETS

INSTRUCTION NO. 2/97 ON THE AUTHORIZATION OF THE REGIONAL SECURITIES EXCHANGE

Having regard to the convention of July 3, 1996 establishing the Regional Council for Public Savings and Financial Markets, hereinafter referred to as the Regional Council, Having regard to Article 21 of the annex to said convention, Having regard to Decision No. 001/97 of the Council of Ministers of the West African Monetary Union in its session of November 28, 1997 adopting the General Regulation on the Organization, Operation and Supervision of the Regional Financial Market of the Union, hereinafter the General Regulation, Having regard to Articles 12 to 19 of said General Regulation, Having regard to the decision of the Regional Council in its session of November 29, 1997, The Regional Council hereby adopts:

Article 1: The Regional Securities Exchange is authorized, upon its approval by the Regional Council, to carry out on the entire territory of the UMOA States, the activities of listing and quotation of securities, as well as the dissemination of stock exchange information.

Article 2: The approval file is submitted to the Regional Council. It must include the following documents: a) the articles of incorporation of the joint-stock company, which must be established under the legal form of a joint-stock company and have its registered office in one of the States of the West African Monetary Union. b) the amount and distribution of its share capital as well as the identity of its shareholders, c) the composition of its corporate bodies, d) the list of management personnel and their criminal records, e) the description of the technical and human resources available to the company, f) the General Regulation applicable to stock exchange operators. This must contain provisions intended to:

• prevent any maneuver, omission, fraudulent practice or price manipulation arising from a market user;
• promote principles of transparency, fairness, loyalty and good faith in stock exchange transactions;
• optimize the functioning of the financial market;
• protect investors and, more broadly, the general interest of the entire market by establishing a supervisory structure and a Market Guarantee Fund;
• sanction any failure to comply with the provisions of its General Regulation as well as any breach or violation thereof by the SGI (Securities Investment Companies). g) The identity and criminal record of the person(s) designated to perform the functions of market surveillance officer, h) The written commitment to make available to the Regional Council in real time all information enabling verification of the normal conduct of transactions, i) Any other document deemed necessary by the Regional Council.

Article 3: The Regional Securities Exchange must inform the Regional Council of modifications concerning the characteristic elements of its situation included in the initial approval file.

Article 4: The approval granted to the Regional Securities Exchange is subject to the payment of a sum whose amount is fixed by instruction of the Regional Council.

Article 5: The approval of the Regional Securities Exchange is published as a notice in the official stock exchange bulletin.

Done at Ouagadougou, on November 29, 1997 For the Regional Council The President L. NAKA