The stock exchange is a regulated market on which securities of listed companies are traded. Founded in 1929 as a clearing house, the status and organization of the stock exchange have known several structural reforms. In 1995, a management company was established and was granted the management of the stock exchange, pursuant to a set of specifications approved by the Ministry of Finance.
This late overhaul of the status of the stock exchange was undertaken as part of a comprehensive modernization of the financial market, initiated in 1993, which had as an objective to endow the stock exchange with modern organizational structure and means to strengthen its role in financing economy.
The responsibilities of the managing company are numerous, including:
The admission to the stock market
The managing company supervises and manages the process of first listing of securities on the Exchange. For that objective, it centralizes the requests made in connection with IPOs proceeds and allocates securities in accordance with eligibility criteria set by the issuer in the prospectus. The managing company announces the issuer’s IPO and informs the public about the results of the operation.
Managing daily operations
The management company is responsible for the technical and operational management of the markets under its responsibility. It controls the trading sessions and ensure that stock orders passed through its systems are made in an orderly, secure and consistent manner in compliance with the market rules set out in its General Regulations.
Guarantying Operations successful completion
The management company manages the system ensuring successful completion of transactions recorded on the central market. As such, it offers to intermediaries a guarantee of clearing securities transactions, even in case of default by counterparty. To secure transactions, the company relies on a system which provides risk management mechanisms covering commitments made by the brokerage firms, which are called to contribute to the deposit guarantee fund established for that purpose.
The managing company produces and publishes a series of indicators and market data for operators and the public. For example, it calculates and publishes daily indices that reflect changes in market prices.
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