Regulatory Alerts2014-04-08 | CD-SIBOIF-840-1-JUN27-2014Added · Updated
Resolution Reforming Article 9 of the Regulation on Authorization and Operation of Stock Exchanges
The Superintendence of Banks and Other Financial Institutions amended Article 9 to permit stock exchanges to invest on their own account in securities traded within their premises, subject to a combined limit of 10% of the issuance or 10% of the stock exchange's total assets. Exemptions apply to securities issued by the Ministry of Finance, the Central Bank of Nicaragua, similar Central American government organs, and securities traded in other stock exchanges. These investments must be executed through a member stock exchange broker, announced immediately to other participants, and involve securities with a first-order risk rating, while requiring policies to prevent conflicts of interest and ensure equal broker selection opportunities.