FiNETIK – Asia and Latin America – Market News Network

Asia and Latin America News Network focusing on Financial Markets, Energy, Environment, Commodity and Risk, Trading and Data Management

Option the Dragon: Stock Options set for launch in China

On August 6, 2013, Chinese securities companies received ‘the notice of preparing the initiating stock options full simulating trading works’ sent by the Shanghai Stock Exchange. This information implies that SHSE is already fully prepared for the launching of stock options. Although there is no clear timetable for launching the stock options, it is likely that they will appear in Chinese capital markets in 2013 or 2014.

Exchange traded stock options are new to Chinese capital markets and these derivatives provide a number of benefits. For one, both long and short-term trading are accessible and, similar to other derivatives such as futures, t+0 is allowed. Another benefit, which is an advantage over futures, is that leverage is provided but buyers can only lose the amount that they paid for the option. Options traders can also execute more complicated strategies through the combination of buying and selling call and put options, including straddles and spreads. Moreover, stock options are perfect hedging tools for individual stocks. Currently, Chinese stock index futures can only hedge the risks of the CSI 300 index and can not directly hedge non-systematic risks from individual stock options. And, despite providing leverage, security companies charge high transaction fees and interest rates for customers interested in selling short and buying long. Furthermore, the introduction of stock options comes with a high minimum threshold, which may largely change the structure of investors in the stock market by increasing the proportion of institutional investors. Thus the introduction of stock options may largely change the landscape of Chinese stock markets and may stimulate trading volumes.

However, there are also potential problems and doubts from the public that my come with the introduction of Chinese stock options. One issue regards the minimum threshold for investors of stock options. Some market analysts estimate that this threshold could be as high as one million yuan, which is higher than thresholds for index futures and securities lending services from securities companies. Currently, only 1% of accounts in the stock market can meet this requirement. Critics argue that stock options may serve as a tool to short the market by institutional investors and rich individuals, who may be in a disadvantaged position. But there are also analysts stating that the threshold may be lower, which would give normal individual investors a better opportunity to participate. The minimum threshold will depend on the final decision from CSRC.

Another problem has to do with the underlying stock that stock options are based upon. Currently, it seems as though only very large blue chip listed companies can enjoy stock options, so not all stocks can be optioned. Because large-cap stocks fluctuate less dramatically than small-cap and medium-cap stocks, the meaning of stock options may not be as transparent as in the fully opened western markets. But for institutional investors like mutual funds, as large-cap stocks take larger proportions of their shares, stock options may be an ideal hedging tool for stabilizing the performance of their portfolios. As current stock markets have adopted t+0 and t+1 trading, short-term day trade for hedging is not feasible. Thus traders may either choose longer-term hedging strategies or speculate through high-frequency intra-day trading.

Furthermore, large amounts of speculation in stock options may lead to dramatic fluctuations in stock prices. Similar to trades within A-share markets, the cost of short-selling is much higher than longing the stocks. So under the current unbalanced system, both hedgers and speculators may choose short in the stock options and the performance of A-share markets in the future may weaken. This has already been proven from the stock index future’s impact on A-share stock markets.

In conclusion, despite the risks, the launching of stock options is important for the development of Chinese capital markets.

Source: KapronAsia, 20.08.2013

Filed under: Asia, China, Exchanges, News, Risk Management, , , , , , , ,

Mexico: FIBRAS (REIT´s) drive BMV Mexicos Stock Exchange listings

17 Placements that have been made in the Bolsa Mexicana de Valores (BMV) so far in the year, five correspond to Fideicomisos de infraestructura en bienes raíces (Fibras).

These five trusts represent 34% of all placements in the year. This percentage shows the strength they mean to the Mexican stock market.

In addition, the participation of Fibras is remarkable for its amount of placement, since participates with 46.377 billion pesos, of the approximately 120 billion pesos collected until now.

But if the historical figure of Grupo Financiero Banorte is not considered- 27.815 million pesos-the capital gathered at the BMV is 91.568 billion pesos and of this amount, the resources obtained through the Fibras is close to 51%.

Then, five Fibras have collected slightly more than half of the resources at the BMV only from January 30 to July 24 this year.

The percentage of resources obtained by the trusts gives certainty and reflects a favorable perspective that constitutes one of the main platforms of financing for companies operating in the country, as well as an important investment vehicle.

Given the positive evolution of the Fibras in so far this year, José Manuel Allende, Deputy general director of promotion and planning of the BMV, did not rule out that in the remainder of the year new placements of these trusts could be announced .

The launch of a new Fibra, of Grupo Danhos is expected for next September. While today there are six trusts from investment in real estate listed in BMV: Fibra UNO, Fibra Hotel, Fibra Mcquarie, Fibra Inn, Fibra Terra and Fibra Shop.

Performance and operability of the Fibra has excelled since they went to the Mexican stock market, already reaching high levels of operation and in accordance with the liquidity, the BMV index, two trusts are in the segment of high liquidity and three more are in a midrange, said Jorge Placido, director of analysis and investment strategy of Vector.

No doubt it was an instrument with very good acceptance among investors and is expected to grow interestingly in the future, because it has several advantages.

For the real estate sector, the arrival of the Fibras brought important benefits that will also impact on the growth of the productive sector construction Mexico and represents one of the best ways to access funding.

Listings  BMV 2013 from January 30 – till July 24, 2013

DATE

ISSUER

AMOUNT

(MXN)

24/07/2013

FIBRA SHOP

5,466’319,197.50

27/07/2013

BANORTE

27,814’854,210.00

10/07/2013

GRUPO AEROPORTUARIO DEL CENTRO NORTE (OMA)

2,760’000,000.00

26/06/2013

CORPORACIÓN INMOBILIARIA VESTA

2,865’997,372.50

26/06/2013

GRUPO FINANCIERO INBURSA

12,548’681,522.00

21/06/2013

OHL MEXICO

6,993’508,369.00

14/06/2013

HOTELES CITY EXPRESS

2,915’603,088.00

03/06/2013

DESARROLLADORA Y OPERADORA DE INFRAESTRUCTURA HOSPITALA-RIA DE IXTAPALUCA

1,845’000,000.00

03/06/2013

SERVICIOS INTEGRADOS DE PASAJE Y TURISMO

3,500’000,000.00

31/05/2013

FIBRA HOTELERA MEXICANA

4,877’725,000.00

22/03/2013

INFRAESTRUCTURA ENERGETICA NOVA

7,415’757,000.00

20/03/2013

PLA ADMINISTRADORA INDUSTRIAL (FIBRA TERRA)

9,521’540,000.00

13/03/2013

FIBRA INN

4,460’457,244.50

13/03/2013

GRUPO DINIZ

250’000,000.00

26/02/2013

GRUPO CIOSA

150’000,000.00

31/01/2013

ORGANIZACION CULTIBA

3,944’696,770.00

30/01/2013

FIBRA UNO

22,050’000,000.00

(Judith Santiago / Mexican Business Web)

Related posts:

Filed under: BMV - Mexico, Exchanges, Latin America, Mexico, Risk Management, , , , ,

Mexico: Fibras acaparan la colocación bursátil MBV

De las 17 colocaciones que se han realizado en la Bolsa Mexicana de Valores (BMV) en lo que va del año, cinco corresponden a los Fideicomisos de infraestructura en bienes raíces (Fibras).

Estos cinco fideicomisos representan 34% de todas las colocaciones en el año. Dicho porcentaje muestra la fortaleza que significa la actividad inmobiliaria para el mercado bursátil mexicano.

Además, la participación de las Fibras es destacable por su monto de colocación, ya que emite 46,377 millones de pesos, de los aproximadamente 120,000 millones de pesos hasta ahora recabados.

Pero si no se considera la cifra histórica del Grupo Financiero Banorte -27,815 millones de pesos-, el capital recabado en la BMV suma 91,568 millones de pesos; de este monto, los recursos obtenidos por medio de las Fibras representa una participación cercana a 51 por ciento.

Entonces, las cinco Fibras han recabado poco más de la mitad de los recursos en la BMV tan solo del 30 de enero al 24 de julio de este año.

El porcentaje de recursos obtenidos por los Fideicomisos da certeza y refleja una perspectiva favorable de que constituye una de las principales plataformas de financiamiento para las empresas que operan en el país, así como un importante vehículo de inversión.

Dada la evolución positiva de las Fibras en lo que va del año, José Manuel Allende, director general adjunto de Promoción y Planeación de la BMV, no descartó que en lo que resta del año se anuncien nuevas colocaciones de estos Fideicomisos.

Para septiembre próximo se espera el lanzamiento de una nueva Fibra, la de Grupo Danhos. En tanto que a la fecha hay seis Fideicomisos de inversión en bienes raíces listadas en la BMV: Fibra Uno, Fibra Hotel, Fibra Mcquarie, Fibra Inn, Fibra Terra y Fibra Shop.

El desempeño y operatividad de las Fibras ha destacado desde que salieron al mercado de valores en México, ya alcanzan altos niveles de operación y de acuerdo con el índice de bursatilidad de la BMV, dos Fideicomisos se encuentran en el segmento de alta bursatilidad y tres más están en un rango medio, dijo Jorge Plácido, director de Análisis y Estrategia de Inversión de Vector.

Sin lugar a dudas ha sido un instrumento con muy buena aceptación entre los inversionistas y se prevé que tenga un crecimiento interesante en el futuro, ya que tiene diversas ventajas.

Para el sector inmobiliario, la llegada de las Fibras trajo importantes beneficios que impactarán también en el crecimiento del sector productivo construcción México y representa una de las mejores vías para acceder a financiamiento.

EMISIONES BMV 2013  DEL 30 DE ENERO AL 24 DE JULIO

FECHA

EMISOR

MONTO

(*MDP)

24/07/2013

FIBRA SHOP

5,466’319,197.50

27/07/2013

BANORTE

27,814’854,210.00

10/07/2013

GRUPO AEROPORTUARIO DEL CENTRO NORTE (OMA)

2,760’000,000.00

26/06/2013

CORPORACIÓN INMOBILIARIA VESTA

2,865’997,372.50

26/06/2013

GRUPO FINANCIERO INBURSA

12,548’681,522.00

21/06/2013

OHL MEXICO

6,993’508,369.00

14/06/2013

HOTELES CITY EXPRESS

2,915’603,088.00

03/06/2013

DESARROLLADORA Y OPERADORA DE INFRAESTRUCTURA HOSPITALA-RIA DE IXTAPALUCA

1,845’000,000.00

03/06/2013

SERVICIOS INTEGRADOS DE PASAJE Y TURISMO

3,500’000,000.00

31/05/2013

FIBRA HOTELERA MEXICANA

4,877’725,000.00

22/03/2013

INFRAESTRUCTURA ENERGETICA NOVA

7,415’757,000.00

20/03/2013

PLA ADMINISTRADORA INDUSTRIAL (FIBRA TERRA)

9,521’540,000.00

13/03/2013

FIBRA INN

4,460’457,244.50

13/03/2013

GRUPO DINIZ

250’000,000.00

26/02/2013

GRUPO CIOSA

150’000,000.00

31/01/2013

ORGANIZACION CULTIBA

3,944’696,770.00

30/01/2013

FIBRA UNO

22,050’000,000.00

* Millones de pesos  (Judith Santiago / Mexican Business Web)

 Artículos relacionados

  1. Fibras tras proyectos de infraestructura
  2. Fibras aportan liquidez a desarrolladores inmobiliarios
  3. Fibras impulsan construcción de corporativos

Source: MexicanBusinessWeb, 19.08.2013

Filed under: BMV - Mexico, Exchanges, Latin America, Mexico, Risk Management, , , , ,

Risk Management Mexico PRMIA: Retos y Riesgos de la Industria de la Construcción en México

Retos y Riesgos de la Industria de la Construcción en México: el caso de las empresas desarrolladoras de vivienda

Los retos que enfrenta la industria de la Construcción, particularmente dentro del sector de la Vivienda, han sido producto de diversos cambios y políticas de carácter económico. Se analízarán estos impactos y las perspectivas que se tiene sobre la industria en el corto y mediano plazo.

Contenido:

– Entendimiento del entorno económico actual de México
– Modelo de Riesgo Industria
– Riesgos que enfrenta la industria de la Construcción
– Análisis de los principales indicadores del sector
– Situación actual de las constructoras de vivienda en México

Impartido por: Mtro. John Soldevilla
Director General ECOBI (Economy, Business & Indicators)

Fecha: Agosto 22, 19:00 hs

Lugar: Escuela Bancaria y Comercial, División de Posgrado
Centro de Estudio y Convivencia
Dinamarca no.32 esq. Hamburgo, Col. Juárez  México, D.F.
 
Registro y Detailles ver: PRMIA Mexico
 
SOURCE: PRMIA Mexico 15.08.2013

Filed under: Events, Latin America, Mexico, Risk Management, , ,

London Stock Exchange to supply technology to Argentinian CSD

The London Stock Exchange (LSE) is to become the technology provider to Caja de Valores (CVSA), the Argentinian central securities depository (CSD). The two parties signed a partnership agreement ahead of the depository’s immediate priority which is to support the country’s new Bolsa & Mercados Argentinos (BM&A) exchange.

The deal means the LSE’s trading platform will shortly be rolled out in the country. MillenniumIT, the LSE’s technology arm, is the partner who will provide the capital markets technology and expertise to CVSA, which will then use it to support the new Argentinean exchange.

B&MA is a partnership between the Buenos Aires Stock Exchange and Merval, the association of Argentine brokers responsible for market operation in Buenos Aires. The joining of the two venues has been spurred on by Argentina’s Congress who last year approved a sweeping capital markets reform package.

Commenting on the deal, Ernesto Allaria, director of B&MA, said: “Selecting MillenniumIT as our technology provider offers B&MA significant opportunities to take advantage of more globally interconnected markets. This represents an important step forward for B&MA as well as the rest of Argentina’s capital markets.”

Source: Bobsguides, 01.08.2013

Filed under: Argentina, Exchanges, Latin America, , , , , , ,

Brazil:Inseed Investimentos selects eFront

EFront, a leading software provider of solutions for managing alternative investments, has signed a new Brazilian client, Inseed Investimentos, a prominent venture capital firm based in Belo Horizonte.

With over 40 companies in its portfolio, Inseed Investimentos has a strong track record of investing in innovative companies with high growth potential in the early stages of development. The company will be making use of eFront’s front-to-back integrated solutions to improve efficiency and investor relationships and structure its investment operations and fundraising activity.

The client win forms the latest chapter of eFront’s ongoing expansion into Brazil where it already provides solutions to the largest private equity firm in Latin America, GP Investments. In order to support these clients and the broader regional market eFront will be opening an office in Rio de Janeiro later this year. GP Investments has invested more than USD$5 billion across 15 different sectors, and as eFront’s cornerstone regional client is a big factor in the decision to expand.

Ayman Daif, Area Sales Manager of eFront, says “With Brazil’s fast-growing alternative investment market, this is an incredibly exciting time to make inroads into the region; over the past decade the Brazilian private equity sector has deployed over USD$22 billion in capital, and this is only accelerating. Private equity funds have played a key role in Brazil’s economic rise, helping to professionalize family-owned businesses, improve corporate governance and provide much needed growth capital.

eFront’s software solutions are designed to help general partners, limited partners and fund administrators automate and optimize all aspects of managing both investment and investors. For example, with eFront GPs can automate difficult and often error-prone tasks such as issuing capital call notices, managing investor allocations and fees, and closing financial periods.

Source: Finextra 30.07.2013

Filed under: Brazil, Latin America, Wealth Management, , , , , , , , ,

ITG launches Posit Alert for Mexican equities

ITG, a leading independent execution and research broker, today announced the launch of Posit Alert for Mexican equities, marking the 30th global market where Posit Alert is available.

POSIT Alert is a premier platform for sourcing large blocks of liquidity, actively alerting buyside traders to liquidity that matches orders on their trade blotter. Buyside traders use POSIT Alert to prevent information leakage on large orders, maximize their chances of finding liquidity and reduce market impact by matching at the midpoint with no need for negotiation.

In Mexico, POSIT Alert allows buyside traders to anonymously cross blocks of shares on the Bolsa Mexicana de Valores (BMV). POSIT Alert Mexico provides seamless block crossing opportunities without any human intervention, minimizing information leakage.

“The Mexican market can present challenges for the buyside in terms of sourcing block liquidity, particularly in thinner names,” said Eric Blake, ITG’s Head of Latin America. “The launch of POSIT Alert offers an efficient, cost-effective solution for trading Mexican equities.”

 Also commenting on the rollout, ITG’s Head of Electronic Brokerage, Jamie Selway, said, “our Mexican launch is an important addition to POSIT Alert’s global footprint, enhancing the block liquidity value proposition we deliver to buyside traders.” POSIT Alert is already a successful tool for buyside traders across North America, Europe and the Asia Pacific region, seamlessly connecting more than 550 trade blotters. POSIT Alert currently offers 1.1 billion shares of active, global liquidity on a given day in the US, with an average trade size in 2013 of 33,000 shares, compared to approximately 300 shares on US exchanges. In Canada, POSIT Alert trades average approximately 29,000 shares, while in Europe the average trade size is $1.1 million and in Asia Pacific it is approximately $300,000.

Source: Finextra 30.07.2013

Filed under: BMV - Mexico, Exchanges, Latin America, Mexico, , , , , ,

Perseus Opens Throttle on Award Winning New York to Brazil Exchange Network

  • Global Telecoms Business Innovation awarded fastest network from New York to Brazil increases in speed

  • Perseus customers see ‘Evergreen’ latency enhancements with CME, NYSE, Nasdaq OMX with BM&F Bovespa connection

NEW YORK and SAO PAULO – 24 July 2013 – Perseus Telecom, a leading global provider of ultra-low latency, high capacity networks from market-to-market, today announced it has made the company’s industry leading network between Nasdaq OMX in New York and BM&F Bovespa in Sao Paulo, 2.5 milliseconds faster than the already fastest recognized connection by the Global Telecoms Business Innovation Award in 2012.

Perseus has operated the fastest market-to-market network connection between New York and Brazil from the datacenters of Nasdaq OMX and the BM&F Bovespa for almost two years while working tirelessly to enhance performance. Dozens of companies within financial markets including exchanges, banks, brokers, high frequency traders, market data and order management vendors have all found advantageous opportunities with accelerated speed over this unique Perseus network.

Customers have selected Perseus Telecom for the fastest connections from Chicago to New York, New York to Brazil, New York to London, London to Frankfurt and with other key market-to-market connections. Moreover, Perseus customers rely on best-in-class speed to market backed by a performance driven “Walk-Away” Service Level Agreement (SLA).

The Perseus SLA is a standard for all customers allowing them to enjoy the benefit of having one contract to negotiate the lowest latency routes with a given expectation that as a lower latency solution becomes available, the customer will benefit from the service enhancement at no extra charge.

Andrew Kusminsky, Chief Operating and Strategy Officer at Perseus said, “Optimizing our network to and within Brazil in an effort to keep our commitment to our customers is a part of a daily regimen for our team. We are committed to ensuring our network meets the performance requirements our customers demand.”

Brazil continues to surge in appeal for high performance trading from foreign institutions in the US, Europe and Asia participating in the markets of the BM&F Bovespa exchange. Financial markets are a major part of Brazil’s attraction for low-latency networks, but as Brazil hosts the world’s main attractions FIFA World Cup 2014 and the Rio de Janerio Olympics in 2016, there is increasing need to serve BIG data, real-time broadcast and digital media add to the driving need to have service providers meet lower and lower latency metrics.

“Perseus has taken all of the necessary steps through our operations unit in Brazil to ensure we meet the regulatory environments as a licensed facilities carrier,” Kusminsky added. “The Perseus connection from New York to Brazil is now optimized through custom built networks spanning from Fortaleza, Rio de Janeiro and on through Sao Paulo, ideal for trading, broadcasting and the movement of big data.”

 

Filed under: BM&FBOVESPA, Brazil, Exchanges, Latin America, , , , , , , , , , , ,

Private banking in China finally taking hold

Considered one of the best retail banks in China, China Merchant Bank (CMB) has started their private banking business in 2007. At the end of 2012, CMB’s pre-tax profit from their private banking business reached 2.3 billion yuan. Other major banks in China have similarly increased their wealth management profit since 2010, when growth of the market really accelerated.

ICBC and BOC still have the largest private banking AUM among the top 5 while CMB has the most private banking centers to serve its HNWI customers. The high net worth customer segment (over 10M RMB in investable assets) is growing at 18% growth rate and reached to 700,000 by the end of 2012. It seems that banks have finally cracked the code and wealth management is set to grow in China.

Potential of private banking

Up coming Webinar on Banking and Risk Management in China on August 7th, 2013.

Source: KapronAsia, 18.07.2013

Filed under: Banking, China, Wealth Management, , , , , , ,

Chile: Comder to launch Central Counterparty next year with Calypso clearing solution

A consortium of Chilean banks is forming a new central counterparty (CCP) next year for over-the-counter (OTC) derivatives. The Comder CCP has selected Calypso to provide the core clearing platform for the new launch which will enable compliance with the post-crash rules laid out at the Pittsburgh G20 mandating more transparency and effectively ‘on exchange’ clearing.

The new Comder CCP will begin clearing non-deliverable forwards (NDFs) in Q4 2014 and interest rate derivatives (IRD) in Q1 2015. The CCP will be powered by Calypso with its platform providing legal novation, affirmation, registration, limits, initial and variation risk margins, collateral management data, and default management and centralised trade repository storage and reporting.

According to Felipe Ledermann, the chief executive of Comder, Calypso was chosen for its experience in OTC derivatives central clearing. Comder will receive on-going maintenance and support from the vendor after the platform is rolled out next year.

“We see Calypso as a strategic partner for one of the most important projects in the Chilean banking industry,” continued Ledermann. “This initiative allows us to build a best-in-class CCP with the highest standards and align with BIS-IOSCO principles for market infrastructures.”

Calypso already provides OTC derivatives clearing and processing infrastructure and technology to leading clearing houses, such as the Chicago Mercantile Exchange (CME), Eurex, BM&FBovespa, the Tokyo (TSE) and Singapore exchanges (SGX) and Hong Kong Exchanges and Clearing (HKEX). The Calypso clearing solution provides full cross-asset coverage, manages each step in the clearing process and delivers visibility into risk for cash and OTC derivatives products, claims the vendor. The single platform should also be scalable if Comder attracts significant volumes.

Commenting on the deal, Kishore Bopardikar, president and chief executive of Calypso Technology, said he was excited to provide a solution that will enable the Chilean market to move towards a centrally cleared derivatives environment, adding that “we are pleased to be supporting the development of such an important platform for the country”.

Source: Bobsguide, 23.07.2013

Filed under: Chile, Latin America, Standards, , , , ,

Sao Paulo based BLK Sistemas Financeiros Accelerates Trading with Perseus LiquidPath®

–          Perseus Telecom Brazil Connects BLK Sistemas Financeiros to Brazil Exchange in less than 50 microseconds

–          BLK Sistemas Financeiros Enhances Liquidity options with Perseus Ultra-Low Latency DMA Connectivity

SAO PAULO– 15 July 2013 – Perseus Telecom, a leading provider of ultra-low latency, high capacity global networks, today announced BLK Sistemas Financeiros has connected to the BM&F Bovespa through the Perseus Telecom LiquidPath connection of sub 50 microseconds. LiquidPath launched late in 2012 by Perseus, connects the ALOG/Equinix (SP1) datacenter with the BM&F Bovespa data center (CT1) in less than 50 microseconds Round Trip Delay (RTD).

Perseus Telecom winners of the Global Telecoms Business Innovation award in 2012 for building the fastest connection between the Nasdaq OMX datacenter in New York and the BM&F Bovespa data center in Sao Paulo, has since launched its LiquidPath product, which furthers the commitment to market-to-market trading. LiquidPath assists brokers, vendors and their customers, with international communications, infrastructure support and ultra low-latency last mile connectivity to exchanges.

Rogério Paiva Managing Director at BLK Sistemas Financeiros said, “We carefully selected Perseus Telecom, who is well known in Brazil for its exchange connectivity platform, LiquidPath, which has helped ensure the best performance locally for our customers.”

BLK Sistemas Financeiros specializes in electronic & algorithmic trading with new infrastructure developed in Brazil called ‘Proximity Colocation’ for high speed electronic trading operations. BLK customers utilize sophisticated ultra low-latency straight through processing environment, based on the latest technological advancements available.

“BLK Sistemas Financeiros is a great new addition to the Perseus Telecom community connecting to our global network from Brazil, said Marcos Guimaraes, President of Perseus Telecom Brazil, “BLK can now help its customers take advantage our LiquidPath infrastructure to provide access to the BM&F Bovespa for its trading customers, but also to other exchanges in the 60 global markets Perseus serves.”

Source, Perseus, 15.07.2013

Filed under: BM&FBOVESPA, Brazil, Latin America, Trading Technology, , , , , , , , , ,

Perseus Brazil Debuts Market-To-Market Liquidity Platform LiquidPath®

  • Fastest Connection to the BM&F Bovespa from Equinix/ALOG in Sao Paulo
  • Financial Compliant Network for Global Direct Market Access

Perseus Telecom, a leading provider of ultra-low latency, high capacity networks for market-to-market connectivity, today announced a fully managed ultra low latency solution offering called LiquidPath®. The service offering encompasses a complete trading network solution and infrastructure service for local and international exchange trading across global financial markets. LiquidPath® was developed to empower both the international Buy-Side with the local Sell-Side in order to take full advantage of the ever-evolving Emerging Markets landscape.

LiquidPath® connects the Perseus ultra low latency global network with key exchange data centers around the world. The service assists with procurement, staging and management of infrastructure for firms in need of support in foreign or emerging markets. Deployed at the beginning of 2013, the LiquidPath® platform connects the Perseus award winning network connection of New York’s Nasdaq OMX datacenter with the Sao Paulo Equinix/ALOG datacenter and into the site of the BM&F Bovespa exchange.

In Brazil, LiquidPath® is run by a local Perseus team of financial technology experts who purchase, install and manage equipment used for market data and trading in the Brazilian financial markets. The solution has connected Equinix/ALOG with BM&F Bovespa in less than 50 microseconds making LiquidPath® the fastest connection in market. LiquidPath® is an RCB compliant network of Brazilian exchange market data and trade execution messages.

Key Features of LiquidPath® Brazil

  • Market-To-Market: Global connectivity to 60+ financial markets.
  • Ultra Low-Latency: Fastest trans-Atlantic connection between London & Frankfurt; New York & London; New York & Sao Paulo.
  • Market Access Acceleration: Turn-up connections with exchanges, vendors and counter parties within proximity datacenters in days not months.
  • Agile Technology Support: Immediate adoption of new trading technologies as made available to stay competitive.
  • Financial Network Compliant: RCB network allowing for DMA access to local CVMs and exchange ports.

The LiquidPath® platform has seen an immediate market adoption, as many customers have connected onto the fast path between the Equinix/ALOG data center and the BM&F Bovespa data center with less than 50 microseconds RTD.

Marcos Guimaraes, President of Perseus do Brazil said, “In this new world of globalized, multi-market and multi-asset trading, the total cost of ownership for a firm has become extremely complex and competitive. Our latest offering provides simple, fast and flexible access to global exchange liquidity solving the problems our top end customers face.”

The Perseus LiquidPath® product is part of a suite of services designed to help trading firms get access to far reaching exchanges’ market data, send order execution and be in proximity with the trading community of multiple markets. Perseus stands by its testament of simplifying the process of trading connectivity, solving the problems that the complexities of international deployment involves and keeping the process efficient so that customers can mitigate risk and save money.

Source: Perseus 25.06.2013

Filed under: Asia, BM&FBOVESPA, Brazil, Exchanges, Latin America, Market Data, Trading Technology, , , , , , , , , , ,

Mexico Investment News Letter 07 June 2013

Mexico Is The Next China

“Mexico is the next China,” Ferrari North America CEO Marco Mattiacci said during a panel discussion today about the future of luxury.

Mexico and the cursed Dragon Mart

The closest People’s Republic of China President Xi Yinping came to China’s controversial top project in Mexico was on his Thursday visit to the Chichén Itzá archaeological site with President Enrique Peña Nieto.

China, Mexico vow broad cooperation as Xi visits; no trade pact soon

MEXICO CITY – China and Mexico promised broad cooperation on issues ranging from energy to mining and infrastructure during a state visit by Chinese President Xi Jinping on Tuesday, but any free-trade pact between the emerging market powers is still some way off.

What does Xi see in Mexico?

Analysis: Much of Latin America has for years found in China a voracious trade partner. Mexico has found its fiercest competitor.

Death map’ of deserts aims to save lives of desperate Mexican migrants

Illegal immigration: Humane Borders support group charts bodies found in US-Mexico frontier to try to limit future tragedies

Grupo Gigante buys rest of Office Depot’s Mexican arm

MEXICO CITY – Mexican retailer Grupo Gigante on Tuesday said it purchased the 50 percent stake of the Mexican unit of U.S. office-supply store chain Office Depot Inc it did not already own in a deal worth 8.78 billion pesos ($691 million).

Heineken-Modelo Beer Probe Nears Mexico Agency Decision

Heineken NV (HEIA) and Grupo Modelo SAB, the dominant brewers in Mexico with brands such as Dos Equis and Corona, are nearing the end of an almost three-year-old government…

Pemex Mulls Bolsa Listing of Projects to Lower Funding Costs

Petroleos Mexicanos, Mexico’s state- owned oil producer, is considering securitizing some assets in a way tailored to attract national pension funds to unlock money for its equipment needs.

Analysis: Mexico peso poised at precipice, may face much steeper fall

MEXICO CITY – Mexico’s peso could slide even further if convictions mount that the massive monthly U.S. monetary stimulus is nearing an end and lead to an exodus of foreign investors who have piled into Mexican markets.

1st Marijuana  “Starbuck” style Chain in the US by ex Microsoft Exec  using drug fighting former Mexican president Vincent Fox as marijuana grower

More projects of passenger trains in Mexico

With the Plan Nacional de Infraestructura 2013-2018 the routes that will be developed during the six year period will be made known, as well as the required investment.

The Mexico Paradox

In spite of the violence, illegal drug and arms trade, trucks continue to line up at the border in Ciudad Juarez Mexico.

Filed under: China, Latin America, Mexico, , , , , , , , , , , , , , ,

Latin America: Investors News Letter 10 May 2013

Mexico

Mexico Industry Output Falls Three Times More Than Forecast

Mexico’s industrial production fell three times more than analysts forecast in March, reinforcing expectations that the central bank will cut interest rates for the second time since 2009 later this year.

Factbox: Key facts about Mexico’s tax system

MEXICO CITY – Mexico’s new government has promised a comprehensive review of its tax system, to be announced in the second half of 2013 along with an overhaul of energy policy.

Obama tells Mexicans a ‘new Mexico’ is emerging

US-Mexico Stereotypes Must Be Broken

America Movil sees material impact from Mexico telecom reform

Brazil

Despite winning top world trade job, even Brazil looks beyond WTO

Brazil campaigned hard to get the top job at the World Trade Organization this week but behind closed doors even it acknowledges that the WTO’s main mission – pushing forward in global trade talks – looks for the moment like a lost cause.

BM&FBovespa Quarterly Earnings Trail Estimates as Costs Increase

Petronas Malaysia bolsters Brazil’s Batista with $850 million oil-field buy

Venezuela’s Maduro gets firm Brazilian backing, trade

Brazilian M&A Picks Up as Asians Seek Cheaper Oilfields

Latin America

Argentina’s Deadbeat Special: Buy a 4% Bond or Go to Jail

Panama Canal Cuts Water Use as Drought Prompts Energy Rationing

Brazil’s Odebrecht plans $20 billion spend, targets Peru as key investment
CHICAGO TRIBUNE – Brazilian conglomerate Odebrecht plans to invest $20 billion globally over the next three years, mostly in Latin America and much of it in Peru

Saipem wins $500m offshore contracts in Latin America
– Italy-based engineering services provider Saipem has received new engineering and construction (E&C) offshore contracts, worth a total value of $500m, in Latin America.

APMT prepares for high growth markets
Although global container volumes are not predicted to grow as rapidly over the next five years as they have over the past decade, high growth emerging markets will require higher levels of productivity and rely heavily on expanded inland services

Cartagena aims to be a global megaport by 2017
The Colombian Caribbean port of Cartagena is undertaking extensive infrastructure and technology upgrades in an effort to be one of the world’s 30 best megaports by 2017.

Filed under: Argentina, Brazil, Central America, Chile, Colombia, Energy & Environment, Malaysia, Mexico, News, Peru, Risk Management, Venezuela, , , , , , , , , , , , , , , , , , , ,

Derivatives: Struggling Into the New Era – Outlook 2013/14

The past few years have been challenging for the global economy but it seems as though the derivatives industry sustained more than its share of insults and injuries over the past year or so. Still reeling from the trauma of MF Global in October of 2011, exchange-traded volume went into its first nosedive in decades.

Urgent regulatory requirements added intense cost and time pressures to company staffs that were already stretched. A non-clearing FCM, Peregrine Financial, collapsed in scandal. OTC derivatives struggled with complex regulatory mandates and weak volume.

Perhaps the only positive for the year was that mergers and acquisitions at both the macro and micro level imply that innovation and creativity are still powerful industry drivers. That in turn suggests that the creative dynamism that has characterized the derivatives industry for so many years still has some innings to go.

Read the detailed report about Derivatives market outlook, challenges and issue of big deals, exchange mergers and new start ups, customer protection, Regulatory,Extraterritorial and Tax problems  and more. 

Source: WEF 25.04.2013 by Nicolas Ronalds

Filed under: Asia, Brazil, Exchanges, Risk Management, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,