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🇪🇨 Ecuador /Economy & Trade

Ecuador debates financial code reform, focusing on stock market modernization

From El Comercio · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

News Sources not specified New plan
  • Ecuador's National Assembly will begin debating a reform to the Organic Monetary and Financial Code on July 2, 2026.
  • The proposed law aims to modernize Ecuador's financial infrastructure by updating international standards, strengthening trading mechanisms, and expanding financing options.
  • Key aspects include reforms to credit refinancing, default interest, deposit protection, and modernization of the stock market.

Ecuador's National Assembly is set to begin the first debate on a comprehensive reform of the Organic Monetary and Financial Code on July 2, 2026. This legislative initiative consolidates four previous proposals and introduces significant changes across various financial sectors.

The reform targets credit refinancing, the application of default interest, and the protection of deposits during liquidation processes. A central focus of the debate will be the modernization of the stock market, aiming to update clearing and settlement processes, implement simultaneous exchange of money and securities to reduce risk, enhance interoperability between stock exchanges and financial infrastructure, and adopt international standards like the Principles for Financial Market Infrastructures (PFMI) and IOSCO recommendations.

Ecuador definitely needs to modernize its stock market, and we see this as positive and necessary.

— Catalina PazosExecutive Director of the Association of Securities Houses (Asocaval), on the proposed reforms.

According to the Economic Regime Commission, these changes are designed to transform the stock market into a more efficient tool for financing both the state and the private sector, thereby facilitating access to resources for businesses and investment projects. The proposal has undergone months of analysis and has incorporated observations from public entities, control bodies, financial guilds, and market representatives.

The stock market is a very powerful tool for financing companies, productive projects, infrastructure, and also for offering better investment alternatives.

— Catalina Pazoshighlighting the importance of the stock market.

Catalina Pazos, executive director of the Association of Securities Houses (Asocaval), views the modernization of Ecuador's stock market as positive and necessary. However, she cautions that the process must not undermine investor confidence. "Ecuador definitely needs to modernize its stock market, and we see this as positive and necessary," Pazos stated. "The stock market is a very powerful tool for financing companies, productive projects, infrastructure, and also for offering better investment alternatives. But something fundamental for it to work is trust."

Pazos emphasized that investor trust hinges on clear rules, public information, transparent pricing, and effective supervision, advocating for the continued role of regulatory bodies in ensuring these conditions.

But something fundamental for it to work is trust.

— Catalina Pazosemphasizing the need for investor confidence in the reforms.
DistantNews Editorial

Originally published by El Comercio in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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