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Mexico: BMV incorporates into MILA (Mercado Integrado Latino Americano)

Ciudad de México, diciembre 03, 2014.- La incorporación de México al Mercado Integrado Latinoamericano (MILA) es un hito trascendental para el mercado mexicano, destacó la Secretaría de Hacienda y Crédito Público (SHCP).

Apuntó que esta incorporación es resultado de la reforma financiera promulgada el 10 de enero pasado y del trabajo coordinado de las autoridades y el gremio bursátil, en beneficio de todos los participantes del sistema, así como de la sociedad mexicana en su conjunto.

La dependencia federal señaló en un comunicado que este martes se realizó la primera operación en el MILA a través de la Bolsa Mexicana de Valores (BMV), lo cual fue posible gracias a la reforma financiera.

Además, indicó, con base en la implementación de su regulación secundaria realizada por la SHCP, la Comisión Nacional Bancaria y de Valores (CNBV) y demás autoridades financieras, así como en los trabajos de cooperación entre las bolsas de valores y las casas de bolsa de los países miembros.

Refirió que los sistemas tecnológicos y operativos del MILA en México se encuentran en funciones, y por su parte el S.D. Indeval, Institución para el Depósito de Valores, ha realizado las gestiones necesarias para conectarse a los otros depósitos de valores del MILA.

En paralelo, añadió la Secretaría de Hacienda, se firmaron acuerdos recíprocos y se realizaron pruebas de conectividad para que la operación se lleve a cabo de forma segura y eficiente.

Con esto los mercados de Colombia, Chile y Perú quedan habilitados a partir de esta fecha para operar en el mercado mexicano a través de un intermediario local, realizando intercambios operativos en todos los sentidos.

Resaltó que la incorporación de México al MILA significa que los inversionistas mexicanos tendrán acceso a más de 780 valores listados, además este mercado integrado abre una ruta franca, disponible a los inversionistas de los países miembros, para invertir en valores mexicanos.

De acuerdo con la Federación Mundial de Bolsas (WFE), con la incorporación de México el MILA se convierte en el primer mercado en América Latina por número de compañías listadas y valor de capitalización bursátil, expuso.

Indicó que en el MILA se operarán, a través de la BMV, todos los servicios de los mercados de acciones y derivados, incluyendo el listado de acciones, títulos de deuda, Certificados de Capital de Desarrollos (CKDs) y Fideicomisos de Infraestructura y Bienes Raíces (Fibras).

Asimismo se ofrecerán plataformas electrónicas de negociación para acciones, derivados financieros, operaciones de renta fija y derivados over the counter (OTC), además de acceso por medio de una orden de ruteo al mercado de derivados más grande del mundo, el Chicago Mercantil Exchange (CME).

Del mismo modo se liquidarán y compensarán todas las operaciones a través de contrapartes centrales y se ofrecerán servicios de custodia, abundó la dependencia federal.

Source: Mexican Business Web, 03.12.2014

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Filed under: BMV - Mexico, Chile, Colombia, Exchanges, Latin America, Mexico, Peru, , , , , , , , , , , ,

Cemex aims for $950m Latin American float in Colombia

Cemex, the Mexican cement producer, hopes to raise up to $950m from the partial sale of its Latin American subsidiary, people familiar with the deal told the Financial Times on Monday.

The company has set a price range of 11,000-13,500 Colombian pesos a share for the sale of about 24 per cent, or 126.6m shares, in Cemex Latam Holdings, Cemex’s Central and South American unit, in a forthcoming initial public offering on the Colombian stock exchange.

 
FT related CEMEX news:
The IPO of Cemex Latam, which includes Brazil, Colombia, Costa Rica, El Salvador, Guatemala, Nicaragua and Panama, is part of the company’s ongoing efforts to pay down its high debt. As of end of September, gross debt, which includes perpetual notes, stood at $17.7bn.

The planned IPO follows a recent refinancing agreement for about $7bn in loans, which extends maturities by three years from 2014 to 2017. At the time, analysts welcomed the agreement, saying that it bought the company valuable time to allow global cement markets to recover.

“The refinancing lays to rest any residual concerns about the company’s solvency,” one analyst who asked not to be named, told the FT recently.

That, coupled with positive results during the third quarter – Cemex said that earnings before interest, taxes, depreciation and amortisation (ebitda) between July and the end of September grew 9 per cent compared with last year to reach $730m, the highest ebitda generation in three years – has fuelled a rally in the company’s share price this year.

For years, Cemex was considered one of the most successful “multilatinas” as Latin American multinationals are known, as it embarked on a 20-year acquisition spree that turned it into the world’s third-largest cement producer by volume.

But the Monterrey-based company came unstuck following its purchase of Rinker, the Australian building-materials supplier, for $15.3bn – an acquisition it financed with short-term loans and that came on the cusp of the US housing crash.

Source: Financial Times, 22.10.2012

Filed under: Colombia, Exchanges, Mexico, News, , , , , , , ,

Fidessa explores the development of electronic trading in Latin America

Fidessa group plc , provider of high-performance trading, investment management and information solutions for the world’s financial community, has today announced the publication of a white paper, Life in the fast lane: the development of electronic trading in Latin America. The paper explores the current trading landscape in Brazil, Mexico and the Andean region, and how recent technology and regulatory developments will affect domestic and international brokers trying to establish a rewarding position in these fast-paced markets.

White paper looks at market growth and trading technology in Brazil, the Andean region and Mexico

To highlight the unique trading conditions, market challenges, technology and regulatory changes shaping each market, Fidessa’s white paper considers specific regions in Latin America individually: from the extreme growth of Brazil as a strategic trading destination, to upgrades being made to Mexico’s trading infrastructure as well as the Andean region’s efforts to boost liquidity and exploit economies of scale. The paper explores the challenges presented by Latin America’s varying stages of growth as an electronic marketplace and concludes that flexibility, agility and scalability will be key attributes of the technology solution.

Alice Botis, Fidessa’s Head of Business Development in Latin America comments: “Latin America is attracting significant interest from global market participants and this shows no signs of stopping. Brokers are looking at the unique benefits each country has to offer and are taking the necessary steps to gain a presence in multiple locations across the region, in financial centers such as Brazil, Chile, Colombia, Mexico and Peru. Each country retains its unique style of trading, so it is important for buy-side and sell-side firms to understand how the marketplace is evolving in each region within Latin America and how those developments fit in with their local and global trading strategies.”

Source: Bobsguide, Fidessa 12.07.2012

Filed under: Brazil, Chile, Colombia, Latin America, Mexico, News, Peru, , , , , , , , , , , , , , , , , , , ,

Latin America: NYSE Technology & ATG stream line Trading & Data Access to LatAm

NYSE Technologies, the commercial technology unit of NYSE Euronext, and Americas Trading Group (ATG) are pleased to announce the production use of their high-performance order routing and market-data platform offering the global trading community low-latency access to the key trading venues in Latin America.  Leveraging NYSE Technologies’ Secure Financial Transaction Infrastructure (SFTI), the network connection delivers the lowest possible latency between New York and Sao Paulo.

Now the Global Capital Markets Community can leverage their existing SFTI connectivity to access ATG’s sponsored access gateways for direct order routing to Latin American exchanges and brokers.   Market data from key global financial markets is also available to clients in Latin America while Latin American market data can now be distributed world-wide.

“We are pleased to continue our strong partnership with ATG by working closely to expand our presence in Latin America to offer faster, simplified access to these highly attractive trading venues,” said Stanley Young, CEO, NYSE Technologies. “This is a key step in increasing access to, and liquidity in Latin America and working with ATG we will operate the highest performing route in the region.”

“Our local expertise, relationships and long-term commitment to the region combined with the technology and know-how NYSE Technologies brings to this project, create a compelling customer solution to a challenging market,” commented Martin Fernando Cohen, CEO, ATG.  “With the emergence of Sao Paulo as one of the world’s financial capitals, the increased access to local markets by global investors will enable local buy and sell side firms to play a significant role in the further emergence of a global capital markets community.”

ATG uses NYSE Technologies’ Managed Transaction Hub to offer access to local and cross border order flow between exchanges and brokers in Brazil, Mexico, Chile, Colombia and Peru.   All SFTI customers will have the ability to directly access Chile’s Bolsa de Comercio de Santiago, Colombia’s Bolsa de Valores de Colombia and Peru’s Bolsa de Valores de Lima using the ATG’s Mercados Integrados Latino Americanos (MILA) infrastructure.

Source: Mondovisione, 01.05.2012

Filed under: Brazil, Chile, Colombia, Exchanges, Latin America, Market Data, Mexico, Peru, Trading Technology, , , , , , , , , , , , , , , , , , , , ,

Mexico: BMV Mexico´s stock exchange signs agreement with MILA of Chile, Colombia and Peru

During the Second Pacific Alliance Summit celebrated in Merida, Yucatan Mexico on Sunday, December 4th, the Mexican Stock Exchange (subsidiary of BMV Group) signed an agreement of intent with the Exchanges of Colombia, Peru and Chile to join Mercado Integrado Latinoamericano (MILA). President Felipe Calderon (Mexico), President Juan Manuel Santos (Colombia), President Ollanta Humala (Peru) and President Sebastián Piñera (Chile) were all on hand to witness the accord.

The agreement, which will begin to explore operational and technology requirements of this partnership, was signed by Dr. Luis Téllez President of BMV Group, Juan Pablo Córdoba, President of Bolsa de Valores de Colombia, Francis Stenning, General Manager of Bolsa de Valores de Lima (Peru), Mr. Pablo Yrarrázaval, President of Bolsa de Comercio de Santiago and Mr José Antonio Martínez Manager of Bolsa de Comercio de Santiago.

The partnership, which is subject to the authorization of regulators and legal adjustments, will integrate BMV Group to MILA with the goal of increasing listings and bringing further technological and operational benefits to participants in the region.

About BMV Group

BMV Group is a fully integrated Exchange Group that operates cash, listed derivatives and OTC markets for multiple asset classes, including equities, fixed income and exchange traded funds, as well as custody, clearing and settlement facilities and data products for the local and international financial community.

BMV is the second largest stock exchange in Latin America with a total market capitalization of over US$ 453.8 billion. The Exchange is home to some of the most recognizable and profitable global corporations, including: beverage giant Grupo Modelo, whose brands include Corona Extra and Pacifico; América Móvil, one of the largest telecommunications companies in the world; CEMEX, the world’s biggest building materials supplier; and Televisa, the largest media company in the Spanish speaking world, among many others. In addition, MexDer (the Mexican Derivatives Exchange) is also part of BMV Group and is the leading marketplace for trading benchmark Mexican derivatives products.

About MILA

Mercado Integrado Latinoamericano (MILA) is a regional partnership of the Peruvian, Chilean and Colombian Exchanges that started with an agreement signed on November 9th, 2010 to integrate a new trading alternative for LATAM equity markets. It aims i) to expand listing opportunities, ii) to add value in order routing, and iii) to provide market data distribution of the integrated market. It was launched on May 30th, 2011.

Source: Business wire, 05.12.2011

Filed under: BMV - Mexico, Chile, Colombia, Exchanges, Latin America, Mexico, News, Peru, , , , , , , , , , , ,

Chile: Santiago Stock Exchange Revamps IT for Latin America’s Integrated Market

One of the fastest growing regions for electronic trading is Latin America where the Santiago Stock Exchange Chiles central market has forged cooperative relationships with other exchanges in the region, including BM&F Bovespa, and revamped its IT trading infrastructure. In a Q&A with Wall Street & Technology, Andres Araya Falcone, CIO of Bolsas de Comercio de Santiago (BCS), explains how these joint initiatives in Latin America are driving the Chilean market to modernize the exchanges electronic trading infrastructure and prepare for an expected surge in messaging rates from market data.

Andres Araya Falcone

How is the Santiago exchange working with other Latin American markets?

By the end of 2010, the Santiago Stock Exchange had signed a linkage agreement with Brazils stock exchange, BM&F Bovespa, heralding the latest in a series of cooperative projects being run between Latin American bourses. The agreement, signed on December 13th, will enable connectivity between both exchanges for order routing and market data dissemination. It also includes separate initiatives for further development of the Santiago Stock Exchanges derivatives market, the establishment of joint initiatives related to settlement, clearing and central counterparty services, as well as access to the BM&F Bovespa/CME trading platform from Chile.

How will this agreement with BM&F Bovespa impact your technology needs for order routing and market data?

Market participants in both countries will be able to route orders for stocks, stock options and related derivatives listed on the others exchange. Both exchanges will also be able to receive and distribute each others market data. Clearing and settlement of orders will be done according to local market rules of listed instruments. These kinds of initiatives imply that the Santiago Stock Exchanges IT platform has to be prepared to manage more than 6 million orders per day.

Your exchange recently teamed up with the stock exchanges of Columbia and Peru to form the Integrated Latin American Market or MLA, which began operating in June. What are the goals of this initiative?

We have been working for the last 13 months on MLA to consolidate regional stock markets so they may become more attractive for local and foreign investors. MILA will attract more liquidity to the market because investors will have wider availability and a greater diversity of companies to invest in, in a bigger and more integrated market. Finally, listed companies will benefit even further from this integration through access to new and increased financial resources for their expansion.

I understand that Santiago Stock Exchange has adopted IBM Websphere Front Office as its feed handler to power its market data to investors worldwide? Why did you select IBM Websphere?

WebSphere Front Office (WFO) will be a very important technological component for the Santiago Stock Exchanges strategic integration plan with other markets, saving time and reducing project implementation risk. We found a lot of advantages in WebSphere Front Office. First of all, WFO supports over 100 data feeds, including U.S. and international data sources, with connectivity to exchanges, ECNs and consolidated data providers.

Second, the consolidated order book capability facilitates combining any number of order book feeds into a single consolidated view, with improved functionality to deliver information in a better way to our clients. Third, low data latency and high throughput on an integrated, high-performance, high-availability platform, with support for high-speed multicast and point-to-point message transport is one of the most important features of WFO and we are taking full advantage of all of them. Finally, full IBM local and international support, including services and consulting is a key part of the complete solution for the Santiago Stock Exchange.

We are implementing our technological platform over WebSphere MQ Low Latency Messaging network within which WFO is integrated. This will distribute market data feeds from MILA market (Integrated Latin American Market) and BM&FBovespa from Brazil as well.

How important is low latency trading to your marketplace?

In the Chilean market, low latency is becoming more and more important. Today, currently at least three brokerage houses are developing and using their own algorithmic trading strategies for the equities market in Chile. Additionally, we are currently observing algorithmic trading traffic from foreign brokers, especially from Brazil.

Algorithmic trading is sensitive to round trip latency. A broker who is nearer an execution venue than his peers will have an advantage because he will experience shorter network propagation delays. This has led to the practice of locating algorithmic trading servers in close proximity to execution venue servers. In practice this means that the Santiago Stock Exchange will need to check the following list: sufficient bandwidth to handle peak order and trade flows; support for the most popular versions of FIX; facilities for proximity hosting for algorithmic trading servers; conformance with widely adopted execution mechanisms and order types; monitoring and publishing quality of service parameters; order validation routines to prevent fat finger problems, among others.

Have regulations recently opened up Chiles market to foreign investment?

The first concept of DMA in Chile began with what we call “direct traders” (buy-side traders) facilitating these specially authorized institutional clients, to send direct orders to the market via a “broker sponsor”. Thus, pension and mutual funds, insurance companies and other institutions, using trading terminals provided by the Santiago Stock Exchange, can trade directly in our market. The next natural step was the incorporation of electronic networks to attract order flow from the U.S., Europe and neighboring countries in Latin America, especially Brazil.

What did BCS prepare its technology to accept order flow electronically?

In 2006, we built the first FIX interface using version 4.0 to connect to International Networks, to attract the order flow of our local equities market. After that, the Santiago Stock Exchange launched its initiative to modernize the equities electronic trading system and developed TELEPREGN HT, jointly with IBM, which went live in June 2010. This system is ready for algorithmic trading flow since it supports a throughput of over 3,000+ orders per second with sub-millisecond latency. In designing the system, we decided to use FIX 4.4 to enable easier connection via DMA with other exchanges, sell- and buy-side firms and market information vendors. This has greatly facilitated the connection to different networks, such as Bloomberg, Fidessa and SunGard, among others. For all these initiatives, FIX has been crucial in facilitating the integration with these listed networks. During 2011 we will announce new network agreements.

I understand that BCS expects the amount of market data being transmitted to go from 500,000 per month up to 6 million messages per day by 2012. Why do you expect your message rates to grow so rapidly? Is this from electronic trading?

Currently, referring to the equity market, 11 percent of order flow comes from DMA which represents an average of a 27 percent increase over the last 6 months, today 19% on average comes from Internet retail order flow and the rest comes from traditional OMS and trade workstations.

Source: Wallstreet & Technology by Ivy Schmerken (Ischmerken@techweb.com)@ischmerken , 24.08.2011

Filed under: Brazil, Chile, Colombia, Exchanges, FIX Connectivity, Latin America, Market Data, Peru, Trading Technology, , , , , , , , , , , , , , , ,

BlackRock Readies Colombia Index ETF in South America Expansion

BlackRock Inc. (BLK) is preparing to start a local exchange-traded fund in Colombia as the world’s largest money manager expands its operations in South America.

The fund will be denominated in Colombian pesos and will track the Colcap Index, said Axel Christensen, BlackRock’s managing director for South America excluding Brazil.

“We’re very close to starting a product in Colombia,” he said in an interview from London during a Chilean investment promotion event. “We are days away, we hope.”

IShares, the ETF fund business of New York-based BlackRock, also plans to start a local fund in Chile after regulatory changes that enable ETFs take effect next month, Christensen said. IShares already has local ETFs in Mexico and Brazil, Latin America’s two largest markets.

ETFs issue a fixed number of shares and trade throughout the day like stocks. Most are designed to passively track a benchmark equity index.

Source: Bloomberg, 27.06.2011 by James Attwood in Santiago at Jattwood3@bloomberg.net.

Filed under: Brazil, Colombia, Latin America, Mexico, , , , , , , , , ,

Alternative Latin Investor, February 2011 – Issue 8

Aternative Latin Investor February 2011 – Issue 8

– MILA: A New Phase of  Stock Exchange Integration in Latin America
– Guide to Infrastructure in Latin America
– ALI Speaks with Walmart Latin America CEO/President
– Coffee’s Record-breaking prices
– NESsT – (Non Profit Enterprise and Self Sustainability) Sustainability not Charity
-Stock Market In-flows: Asia Vs Latin America
-Steering Clear of Potholes: Fraud in Brazil
-Wine Ventures
-Life Settlement Investment in Latin America

http://www.alternativelatininvestor.com/registration.html
Register for free to gain access to new feature article

Filed under: Argentina, Asia, Brazil, Chile, Colombia, Energy & Environment, Exchanges, Latin America, Mexico, News, Peru, Risk Management, Services, , , , , , , , , , , , , ,

Andean Exchange Project:Colombia and Peru plan to merge Exchanges

Colombia and Peru’s stock exchanges have announced plans for Latin America’s first corporate merger of bourses amid indications that the sweeping changes in market structures elsewhere is beginning to move into the region.

Read full article: http://www.ft.com/cms/s/0/6cb12a80-241d-11e0-a89a-00144feab49a.html#ixzz1BaT3dp6l

The move is expected to speed up the activation of Mila, a separate Chile-Colombia-Peru tie-up that will launch direct trading after its test phase ends in March.

“The fusion of the Lima and Colombian exchanges will generate a strategic alignment in both countries, fortify our position in the capital markets of the region and complement the integration of markets,” said Francis Stenning, director general of the Lima exchange.

Read  MOU between the exchanges: Summary of MOU between BVC (Colombia) and BVL (Peru) by Mondovisione

The two bourses have signed a memorandum of understanding to create a new company, in which Colombia would have 64 per cent control and Peru 36 per cent. The companies that trade on the new enlarged exchange will have a combined market capitalisation of $378bn.

Mila, with 563 companies and an initial trading volume of $300m a day, would be Latin America’s second largest exchange by the combined market capitalisation of the companies on the bourse, after Brazil’s Bovespa’s, which has a total market capitalisation of $614bn.

If the proposal wins the approval of regulatory bodies and the two bourses’ boards, the merger could go ahead as soon as March.

Juan Pablo Cordoba, president of the Colombian bourse, said the merger would increase the value of companies and improve efficiency in an era of globalised capital markets.

“We will be able to develop new products, we will have a greater critical mass, not only in the stock market but we hope in all markets,” Mr Cordoba said.

The announcement comes just days after Mila announced a further delay in its testing phase, brought on by a stand-off between Peruvian lawmakers and the bourse over capital gains tax changes.

Mr Stenning said the harmonisation of tax and regulatory regimes across three countries had been a “big, complex” project.

Shares could be cross-listed on each participating exchange, giving investors in any of the three countries direct trading access to the partner markets.

Source: FT, 19.01.2011 by By Naomi Mapstone in Lima

Filed under: Chile, Exchanges, Latin America, News, Peru, , , , , , , , ,

Andean Exchange Project MILA to Proceed without Peru

Peru’s Bolsa de Valores de Lima (BVL) has suspended its participation in Mercado Integrado LatinoAmericano (MILA), a link-up between BVL, the Bolsa de Valores de Colombia (BVC) and Chile’s Bolsa de Comercio de Santiago (BCS), citing challenges arising from its domestic tax regime.

MILA was created to provide domestic brokers with access across the three participating equity markets through an automated model of intermediated order routers. Once live, the platform will allow brokers in each country to send DMA orders via the infrastructure of local brokers in the other two countries, directly to the exchanges.  The second stage of the integration – slated for completion by the end of 2011 – will seek to address differences in tax and regulation by coordinating regulatory bodies’ and exchanges’ rules across Chile, Colombia and Peru.

The Colombian and Chilean market infrastructure providers will continue working on the integration project, and are evaluating the impact the news will have on the current work schedule and the timing of the implementation.

Source: The Trader, 23.12.2010

Filed under: Chile, Colombia, Exchanges, Latin America, News, Peru, Trading Technology, , , , , , , , , , , , ,

BM&FBovespa and Chile’s bolsa sign “joint operating agreement”

Brazil and Chile’s main exchanges, BM&FBovespa and Bolsa de Comercio de Santiago (BCS), signed a “joint operating agreement” on Monday allowing order routing between the two and which envisions Brazilian assistance in the development of derivatives markets in Chile.  Read FT full article here.

The development is another sign that exchanges in Latin America are gearing up for intra-regional competition for trading coming from abroad as regulatory technology barriers to easier access to the region are falling away.

Some exchanges are also forming alliances with neighbours to develop smaller markets to the levels of regional big-hitters Brazil and Mexico.

Brokers connected to BM&FBovespa, Latin America’s largest exchange, can send orders to Chile’s Bolsa de Comercio de Santiago (BCS), and vice versa in an arrangement that is also being used by BM&FBovespa and the Mexican bolsa with CME Group of the US.

The Brazil-Chile arrangement will initially be limited to stocks traded on both exchanges, as well as stock options and other related derivatives.

Carlos Kawall, director of international affairs at BM&FBovespa, told FT Trading Room by phone from Santiago. “We are undertaking an international expansion, in Asia but most importantly in our region, because we think that Latin America as an integrated unit has a lot of potential to be explored yet.”

The BCS last month joined an “Andean” alliance with smaller exchanges in Colombia and Peru, which gives traders in each country access to partner markets. Next year they plan to allow for direct access to markets and the standardisation of regulation.

Brazil will seek alliances with Colombia and Peru similar to that signed with Chile, Mr Kawall said.

In the first year, the focus of the agreement with Chile will be to “improve connectivity electronically from the country”, he says, but with the later possibility of assisting Chile develop its derivatives markets, encompassing options and futures on stocks, interest rates, and exchange rates.

BM&FBovespa is the third-largest exchange in the world by market capitalisation of the group itself and houses the world’s sixth-largest derivatives market by number of contracts. At the moment, most of Chile’s derivatives trading is done over the counter, rather than centrally cleared and with a counter party, as in Brazil.

By partnering up with Brazil, Chile’s exchange will also have access to the BM&FBovespa/CME trading platform for its markets. BM&FBovespa holds a 5 per cent stake in CME Group. Edemir Pinto, chief executive of the Brazilian group, was recently named to the board of directors of the Chicago-based group.

BM&FBovespa and BCS have also agreed to receive and distribute each other’s market data, and establishment joint initiatives related to settlement and clearing.

Source: FT Financial Times, 13.12.2010 By Vincent Bevins

Filed under: BM&FBOVESPA, Brazil, Chile, Colombia, Events, Exchanges, Latin America, Market Data, Mexico, Peru, , , , , , , , , , , , , , ,

Chile, Peru, Colombia to start trialing Combined Stock Trading Arrangement

The main securities exchanges in Chile, Colombia and Peru plan to begin trialing cross-border stock trading in an arrangement that may lead to the creation of Latin America’s second-largest bourse by market value.

The three exchanges, which signed a definitive agreement in Lima today, will begin testing with brokerages on Nov. 22 in a system known as MILA, they said in an e-mailed statement.

In a second phase the three countries may establish a common exchange in a bid to increase trading volume and lure more foreign investors. The combined market value of the three bourses is $657 billion compared with Mexico’s $464 billion and Brazil’s $1.5 trillion, according to data compiled by Bloomberg. There is “no horizon” yet for direct trading on each exchange, Colombian Securities Exchange President Juan Pablo Cordoba said.

“This is just stage one,” said Rupert Stebbings, head of the Colombian unit of Chilean brokerage Celfin Capital SA. “Full integration is likely to take a couple of years more owing to some significant differences in the tax regimes of each country as well as oversight and of course deciding where the home of the exchange will be.”

Source: Bloomberg, 09.11.2010

Filed under: Brazil, Chile, Colombia, Exchanges, Latin America, Mexico, News, Peru, , , , , , , , , , , , , ,

Rapid Addition Wins Bolsa de Valores de Colombia BVC

Rapid Addition, the leading global provider of low-latency trading technology solutions to financial institutions, today announced its engagement with the Bolsa de Valores de Colombia (BVC) to implement GRHub, Rapid Addition’s flagship FIX Protocol gateway and order routing hub, and u-Trader, Rapid Addition’s web-based, FIX-enabled dealing system.

u-Trader is Rapid Addition’s lightweight buy-side trading application, which connects traders to multiple trading counterparties, either brokers or execution venues. Using u-Trader gives institutions the ability to automate their flow of equity orders, equity options, program, list, and portfolio trades, and also supports Direct Market Access (DMA) and algorithmic trading.

Rapid Addition was chosen by the BVC on the basis that they could exceed the low latency performance requirements of BVC’s exchange members.

Toby Corballis, CEO of Rapid Addition, welcomed the announcement, saying:

“We are delighted to be working with the BVC by providing them with the lowest latency hub solution available on the market today. This will enable the exchange to give its users the best possible performance and help them maintain their competitive edge in the market.”

Jitendra Puri, Vice President of Technology of the Bolsa de Valores de Colombia, said:

“By choosing a firm of Rapid Addition’s industry-leading reputation, we wish to send a clear message to the community that we are totally committed to providing a fully modernized, state-of-the-art solution for the Colombian securities market. Rapid Addition’s expertise in global FIX connectivity and low-latency FIX trading technology made them the best choice for the BVC as we look to expand our offerings internationally.”

Source: A-TEAM GROUP, 23.07.2010

Filed under: Colombia, Exchanges, Latin America, News, Trading Technology, , , , , , , , ,

Latin America Exchanges: Colombia Stocks Lead

Colombia leads Latin American stocks in growth the past decade and last year, but Brazil remains the volume champion.

Colombia’s benchmark IGBC stock index grew by 927.9 percent the past decade. That was more than any other Latin American stock index and compares with a 9.3 percent decline in the Dow Jones Index in the same period, according to Economatica.

Colombia’s stock transactions also were the best performer in Latin America last year, according to a separate analysis from Economatica. The average value of transactions in Colombia fell by 2.3 percent in 2008, which was lower than all other countries in the region and compares with the total Latin America decline of a 13.5 percent.

Brazil’s Ibovespa index, which has been among the global leaders in recent years, grew by 301.3 percent in the ten year period.

Last year, Brazil’s exchanges posted an average of $2.4 billion in stock transactions, a decline of 13.6 percent compared with 2008, according to Economatica.

Brazilian companies — led by oil giant Petrobras, mining giant Vale and banking giant ItauUnibanco – dominated stock transactions in Latin America last year. Nine of the ten most traded stocks were from Brazilian companies. The other one was from Mexico-based America Movil, Latin America’s largest wireless operator.

Mexico’s IPC index grew by 350.5 percent in the ten year period. Last year, Mexico’s stock transactions averaged $440.1 million, a 13.9 percent decline.

The Caracas Stock Index (IBC) grew by 916.5 percent in the ten year period, but last year stocks traded in Venezuela saw their average daily value drop by 29.5 percent. That was the second-worst result in Latin America.

The worst performer last year was Argentina, where the value of average daily transactions fell by 54.5 percent. During the previous decade, the country’s Merval index increased 321.3 percent.
The Lima Stock Index (IGBVL) was among the leading growth winners in the past decade, with an increase of 671.8 percent. Last year, the average value of Peruvian stocks fell by 21 percent.
Chile’s IPSA index grew by 218.8 percent in the past decade. Last year, Chile’s daily average stock transactions fell by 3.6 percent, which was the second-best performance in Latin America, according to Economatica data.

Source: Latin Business Cronicle, 07.01.2010

The study took into account currency fluctuations in the main Latin American markets between December 31, 1999 and December 31, 2009, Efe reported.

The stock exchange with the greater profitability in the decade was Colombia’s, with a 927.9 percent increase, followed by Venezuela (916.5 percent), Peru (671.8 percent), Mexico (350.5 percent), Argentina (321.6 percent), Brazil (301.3 percent) and Chile (218.8 percent).

Source: El Universal, 07.01.2010

Filed under: Argentina, BM&FBOVESPA, BMV - Mexico, Brazil, Chile, Colombia, Exchanges, Latin America, Mexico, News, Peru, Venezuela, , , , , , , , , , , , , ,

CMA launches Latin America algo trading offering

CMA the leading Market Data, Order Management and Connectivity provider in Brazil has officially launched CMA Algoritmos onto its Trade Hub platform.

CMA can now provide algorithmic trading as a part of its portfolio of leading LatAm capital markets services and applications. CMA product offerings are currently in use throughout Latin America by over 17,000 workstations, 75 brokers with access to over 100 global exchanges.

CMA Algoritmos is a sophisticated suite of solutions particularly designed for and by the Brazilian trading market with uses throughout Latin American, Europe and North America. The user simply defines trading strategies, customizes triggers while being able to utilize many common methodologies such as SpreadMaker, VWAP, TWAP, QuickBasket, Best Offer, Volume Tracker and Financial Summary as a few examples.

CMA has enabled Algoritmos onto CMA Trade Hub, the largest network of services and applications utilizing all versions of FIX in Latin America, so that any interested trading party Buy-Side or Sell- Side in North America, Europe or beyond would have instantaneous access to broker dealers for execution.

The CMA services and applications on Trade Hub are utilized by more than 17,000 workstations from 60 brokers and many of their clients in Brazil as well as 15 other brokers and their clients throughout: Argentina, Chile, Peru, Colombia, Mexico and Spain. The addition of Algoritmos makes trading Equities, Futures, Options and Foreign eXchange in Latin American Capital Markets even more lucrative.

Source: FINEXTRA, 23.11.2009

Filed under: Argentina, BM&FBOVESPA, BMV - Mexico, Brazil, Chile, Colombia, Exchanges, FIX Connectivity, Latin America, Mexico, News, Peru, Trading Technology, , , , , , , , , , , , , , , , , , , , , , , , , , , ,