Uría & Menéndez
Last October, the Latin American Stock Exchange was created by the stock exchanges of Spain, Portugal and several Latin American countries.
The aim of the project is to create a new stock exchange platform for the negotiation on the Spanish stock exchange of the main Latin American corporations. This project allows the most important Latin American companies (mainly in the fields of telecommunications, finance and energy) to access the European capital market.
In principle, five companies have admitted to this market - with a capitalization of about $6.954 million) - will start quoting in this new exchange market, with the intention of reaching around 50 firms in the near future (with a capital stock of $220 billion). From a legal point of view this new stock exchange will be based on the mutual recognition of accounting principles and market regulations of the country of origin of the issuer. This means that by complying with the law of its respective country, a company will be authorized to negotiate its securities on this stock exchange without having to adapt its accounts or meet the particular requirements of the Spanish legislation.
The legal framework will be based on a statute, which will be developed by circulars approved by the governing body of this Stock Exchange (the Committee of Admission and Supervision), under the ultimate authority of the Spanish National Stock Market Commission (Comisión Nacional del Mercado de Valores), to guarantee a minimum level of control. Luis de Carlos / Fernando Calbacho