Describing the El Salvador Stock Exchange cluster

Abstract

The El Salvador Stock Exchange (BVES) is the only entity in the country that facilitates access to the market for domestic private debt issuances, equity issuances, and repurchase agreements. It also owns the country's only securities depository, Central de Depósito de Valores, S.A. de C.V. (Cedeval), which is rated "EAA+(slv)." This rating corresponds to entities with a very high capacity to meet their obligations on the agreed terms and deadlines, a capacity that would not be affected by potential changes within the entity, the industry to which it belongs, or the economy. Protective factors are strong, and the risk is modest, according to Fitch Ratings (Garza, 2018).

The BVES is also responsible for providing stock market participants with a service platform that complies with the legal requirements established by the Superintendency of the Financial System (SSF). Through its subsidiary, Cedeval, it has offered securities deposit, custody, and administration services via an electronic system since 1998.

The purpose of this study was to describe the configuration of the El Salvador Stock Exchange cluster, using the competitiveness diamond, value chain, and cluster mapping tools.