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Finamex: It’s a Fine Time to Cross the Border – Mexico the Emerged Market of Growth

In January of this year the theme of emerging markets became more of a primary investment rather than that of an alternative one. Many people ventured toward countries that have had rocket high growth over the last few years such as the BRIC countries of Brazil, Russia, India and China which received the preponderance of excitement in the emerging market approach.

Read full article Mexico the Growth Market

Today, the BRIC countries have been challenged to maintain upward momentum. The simmering down of the American market crisis and the expanding concerns for the Eurozone present a dilemma and are showing the effects. The Institute of International Finance (IIF), a global association of financial institutions, says that “net private capital flows to emerging market economies remain quite volatile and subject to disturbance from the euro area”. According to the research, data capital flows fell in 2011 to $1.03 trillion from $1.09 trillion in 2010 and are expected to fall again this year to $912 billion before rising to $994 billion in 2013.

The woes of the Eurozone monetary crisis have influenced investors to move money out of country and to seek safe haven in securities markets elsewhere. Brazil, Indonesia, China as well as others are no longer experiencing upward momentum and are now even in decline or negative.

However year after year, analysts continue to see strong signs of growth and long term prosperity in Mexico as many of the emerging markets troubles are not being seen in Mexico, in fact quite the opposite.

Brazil with its lucrative energy industry capitalized by the largest South American exchange, has attracted many investors to seek opportunities in Latin America. Brazil has enjoyed the influx of foreign investments and has gone further to encourage more interest from the North by recently lowering some of its staggeringly high tax penalties on returns and additionally allowing the shares of foreign instruments to take more of a part in portfolios of its domestic shareholders. “Investors are more cautious with Brazil,” Gustavo Mendonca, an economist with Oren Investimentos in Sao Paulo said this week. “The country has slowed very sharply and the prospects for long-term growth have gone downhill.”

Policy adjustments invite and attract investments, but many of these actions are late and under pressure by issues developing in other countries such as Spain. On the other hand, the opportunities for a rudimental Northern investor looking South of the Border to Mexico remain solid.

A key factor with Mexico is that it has  some of the most definitive metrics that provide the level of transparency needed in a volatile global market.  Unlike Brazil, Russia, India or China, Mexico is directly tied to American monetary policy with a correlation that does not exist in other Emerging Market countries and not surprisingly is also growing alongside the American economy.

Is Mexico beyond ridicule and examination? Of course not, but to begin to understand the benefits of investing in Mexico for the short and the long term we should begin with how Mexico plays a key role as a member of NAFTA (North American Free Trade Agreement). The implementation of NAFTA along with close inter-country relationships, ties Mexico’s trade and currency valuation to that of the US and Canada.

 For example, in 2010 many believed the US would remain flat for the next two years, but we now see this was not the case. As a result of American performance, Mexico’s markets have also increased working in parallel a framework portfolio managers find affirmative Mexico has also maintained a weak peso over the last ten years. The Mexican peso has been priced at a competitive advantage with China.

 Currency rates have helped Mexico realize an economic boom that continues to rise since the 90’s. The move to NAFTA in 1994 could be the key contributing factor for Mexico’s 600 percent increase in sales to the US. With inflation no longer under control in countries like China and  Brazil, analysts are discovering that Mexico’s policies have proven successful in weathering many global financial catastrophes.

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As opportunities within the developed markets diminish, the Mexican marketplace is standing strong. As a top emerging market for the global investing community, particularly in Latin America, Mexico represents a substantial alternative to Brazil, home of the leading Latin American stock market. Mexico, although not a BRIC country, certainly has more promising economic stability and growth potential than some of the most mature economies. With a clear goal in sight, the local markets in Mexico continue to take measures that enhance liquidity in equities and derivatives trading which provide surety to its financial institutions and reach more investors abroad.

Source: FINAMEX /Dan Watkins, 01.08.2012  dwatkins@cc-speed.com

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Filed under: Asia, BMV - Mexico, Brazil, China, Exchanges, Latin America, Mexico, News, Trading Technology, , , , , , , , , , , , , , , , , , , ,

Finamex launches Algorithms with US Equities in the Mexican market

Finamex, a full-service independent broker dealer from Mexico City, and leading provider of innovative trading solutions, has released four opportunistic market trending algorithms for use by Direct Market Access (DMA) clients. The main idea is to allow clients to effectively gain arbitrage profits while mitigating collocation and/or their own strategy development costs.

Finamex’s latest release of arbitrage algorithms have been designed to build opportunities on fungible domestic equities displayed in the Mexican exchange marketplace. Execution calculations work through pre-programmed algorithms built on leveraging theoretical quote pricing as the primary driver of behavior, speed and momentum.

There are a variety of features to how the Finamex arbitrage algorithms provide opportunities with US equities in the Mexican market:

1. Hunter – is an algo which seeks to take advantage of sudden inefficiencies between the equities of foreign listed symbols in Mexico versus their originating market (such as the QQQ or AAPL on the Nasdaq or NYSE markets). The Hunter algorithm computes required data-sets and adjusts itself independently within defined price spreads on the Mexican Stock Exchange (Bolsa Mexicana de Valores: BMV).

2. Ghost – has a characteristic of lying dormant until a desired buy/sell signal appears with a non-previously indicated ask/bid price then it executes contrarily. Similarly with the Finamex “Hunter” algo, Ghost receives the side, quantity and spread parameters of opposing bids/offers satisfying spread parameters of its local market yet quickly hitting IOC type status. This feature helps in the recognition of desired price opportunities without revealing trade strategy intentions by its clients.

3. Scaled – uses a two-spread metric like the Hunter algo, with a signal that triggers in a suddenly inefficient environment. The Scaled algo strategy is seen on a big spread definition, called a “base.” Scaled reacts instantaneously when a lower spread, called the “target”, is satisfied on the other side. Unlike the Finamex “Ghost” algo, the Scaled algo’s intentions are exposed but move immediately when the target spread is satisfied. The Scaled strategy allows other market participants to preview this algo’s activity, causing them to sometimes take a glance on the board, which in turn drive executions over the spreads.

4. Market-maker – a next generation algo intended to provide liquidity and act as a market maker within the local Mexican marketplace. Market-maker absorbs the last trade, adds an indicated spread and automatically places or replaces the order with an indicated quantity. In combination with pegging and short-sell models, the Marketmaker algo is highly beneficial for market making strategies and for acting on market divergences.

“We’re putting in place all of these free strategies for clients who want to access the Mexican stock market with an almost-zero setup price. Our goal is to take Mexico to a higher level in the emerging markets priority list of global investors,” states Hector Casavantes, head of Electronic Trading at Finamex. “We wanted to offer automated algo strategies in order to let investors know how active and easy this market can be to trade. All algorithms were architected with profitability in mind. They’re highly customizable, completely auditable and comprehensive, fully meeting our clients’ demands”.

“With the addition of these tools, we’ve further enhanced our suite of algorithmic-trading products beyond our well-known execution algos in VWAPs, TWAPs, Implementation Shortfall and POV, “Roberto Larenas, Head of Equity Markets at Finamex added. “While we are aware that these algos are more opportunistic, we are still keeping our business model as pure-agency. Buy-side firms are increasingly requesting new tools, new ideas, and new ways to exploit opportunities in emerging markets. Finamex is fully committed in addressing these demands with our best-of-the breed solutions

Source: A-Team, 14.11.2011

Filed under: BMV - Mexico, FIX Connectivity, Latin America, Mexico, Trading Technology, , , , , , , , , , , , , , ,

Finamex Introduces Mexican Exchange Trading Proximity for Direct Market Access (DMA) and Colocation

Finamex, the leading financial services broker dealer for the Mexican Exchange marketplace, historically focused in providing premium professional trading products for high-performance and low-latency market access, announced today its new proximity DMA offering. Currently, Finamex enables trading systems allow firms to access Mexican Exchange venues at the lowest latencies in the market place.

Finamex being an authorized broker dealer it also offers all risk requirements, validations and processes fully in-line with existent official regulations and certified on a yearly basis. Local as well as International trading firms have utilized Finamex connectivity to Bolsa Mexicana de Valores and the Mexican Derivatives Exchange Finamex FIX gateways. Today’s announcement of the technology roll-out within the Exchanges’ datacenter incorporates a new lowlatency approach by Finamex for DMA.

FIX gateways are now within LAN proximity to the Mexican Exchange trading engines allowing for high frequency trading strategies to perform optimally on this new Finamex DMA Gateway. Straight-Through-Processing systems have also been deployed in this environment with integration of Finamex Order Management, Risk Controls, Execution Routing, Algorithmic Trading, as well as networking connectivity for clients and partners.

The new Finamex DMA Gateway includes full support of:

* Ultra-thin and transparent FIX engines configurable for special requirements
* Pre-trade order validation optimized for high throughput execution
* Low-latency verifications modules for trading limits and other important checks
* Optimized order routing directly onto the Exchange matching engine LAN
*Neutral access and protected order flow as Finamex do not operate a proprietary trading desk
* Zero-cost execution algorithms including VWAP, TWAP, POV, and others as well as several synthetic order types.

Finamex’s new infrastructure services support general co-location needs for customers and other market participants to implement their own servers and other network components further minimizing overall latency. For more than 20 years Finamex has been a leader in the Mexican financial services industry consistently ranking as one of the best independent broker dealers in the country. Finamex’s commitment to technology excellence is one of the reasons why it is in the top ten most liquid in the equities market, top-five in the fixed-income business, and the prime choice for HFT players and ALGO shops requiring execution services.

Source: A-TEAM 05.07.2010

Filed under: BMV - Mexico, Exchanges, FIX Connectivity, Latin America, Mexico, Trading Technology, , , , , , , , , , , , ,

Fidessa expands connectivity network with nine new Latin American brokers in Mexico and Brazil

Fidessa group plc, provider of award-winning trading solutions for the buy-side and sell-side, today announced the addition of nine brokerage firms, with operations in Brazil and Mexico, to its global connectivity network. This extends the range of order execution opportunities for firms looking to access the Latin America (LATAM) markets.

BES Securities, Credit Suisse Hedging-Griffo, Fator Securities, Grupo Bursatil Mexicano, ICAP Brazil CTVM, Interacciones Casa de Bolsa, Itau Securities, IXE Casa de Bolsa and XP Investimentos are now all available on Fidessa’s network, and join previously announced LATAM firms including Planner Corretora De Valores and Casa de Bolsa Finamex.

Access to these brokers’ services is available via direct FIX connection or fully integrated into Fidessa’s own products – including the Minerva OEMS and EMS Workstation for the buy-side, and its sell-side trading platform solutions.

Martin Hakker, EVP marketing at Fidessa comments: “We’re committed to expanding our global network to provide the broadest possible range of execution services on a global basis. We’re seeing increased demand in the LATAM region from both buy-side and sell-side firms as institutions in the region continue to embrace electronic trading technologies and international firms look to the region to expand the trading and execution services they can offer their clients.”

Hakker adds: “Having joined Fidessa’s network, these brokerage firms are now able to offer their market-leading DMA, care, and algorithmic trading solutions to both the buy-side and sell-side via one of the largest trading networks in the industry.”

Fidessa’s connectivity network links over 2,300 buy-side institutions to more than 400 brokers and 120 markets around the world, providing a “one-stop-shop” for best execution services. Fidessa group serves around 24,000 users across more than 730 clients around the world and are used by more than 85 per cent of tier-one financial institutions.

Source: Fidessa, 03.11.2009

Filed under: Brazil, Exchanges, FIX Connectivity, Latin America, Mexico, News, Trading Technology, , , , , , , , , , , , , , , , , , , , , , ,

Fidessa expands Latin American reach with leading Mexican broker Finamex

Hong Kong, 10th September, 2009 – Fidessa group plc (LSE:FDSA), provider of the award-winning multi-asset trading, portfolio analysis, compliance, market data and global connectivity solutions for the buy-side and sell-side, today announced it has expanded its Latin American reach with the addition of Casa de Bolsa Finamex, S.A. Bursatil de C.V. (Finamex), a leading Mexican broker, to its FIX connectivity network.


There is marked interest in the global marketplace from all types of investors for cutting edge high tech services, with enhanced algorithmic trading functionality and other exotic access strategies such as statistical arbitrage and multi-asset basket trading.” said Hector Casavantes Gonzalez, Director of Electronic Trading Services at Finamex. “By joining the Fidessa global connectivity network, we’re able to offer our market-leading tools and services to both the buy-side and sell-side via one of the largest trading networks in the industry.”

Established in 1974, Finamex initially focused on the local money market. The firm’s rapid growth in Mexico led it to become one of the first Mexican brokers to expand into international markets. The firm is now a leading provider of a full range of electronic and traditional brokerage services in equities and derivatives to more than 50,000 clients globally.


Martin Hakker, EVP Marketing at Fidessa, commented: “Our clients have increasingly looked to expand their trading business into the Latin American markets with the use of electronic order delivery and execution. Through strategic partnerships with receiving brokers like Finamex, Fidessa continues to build its global network, providing our clients on both the buy-side and sell-side with the broadest access to global markets and to the leading brokerage services available within those markets. The addition of Finamex to our network provides our clients with access to a premiere suite of brokerage tools for the Mexican market as well as to the specialist regional expertise that Finamex offers.”

In the first half of 2009, Fidessa’s global connectivity network has continued to increase its traffic by over 20% and now carries flow with a value of $600 billion a month.  The addition of Finamex builds on Fidessa’s expansion into Latin America earlier this year when it added leading Brazialian investment bank Corretora De Valores.

There are now over 400 brokers available on the Fidessa network offering a mixture of both direct and algorithmic trading services to around, 2,300 buy-side firms across 120 markets globally.

Filed under: BMV - Mexico, Exchanges, FIX Connectivity, Latin America, Mexico, News, Trading Technology, , , , , , , , , ,

Latin American brokers join Thomson Reuters order routing network

Thomson Reuters today announced that four key brokers from Brazil and Mexico have joined its order routing network, expanding the reach of its exchange traded instruments offering into the two largest financial markets in Latin America.

This move forms part of Thomson Reuters aim to expand its desktop and transaction capabilities across Latin America.

Financial market professionals can now route equities orders via Reuters Trading for Exchanges (RTEx) to Alpes and Ativa for Brazil and Casa de Bolsa Finamex and Grupo Bursátil Mexicano for Mexico.

Any user connected to the Thomson Reuters order routing network, both in Latin America and outside the region, can now access liquidity from BMFBovespa and Mexico Stock Exchange via these brokers.

Reuters Trading for Exchanges in Latin America is available to users of Reuters 3000 Xtra and Reuters Trader Latin America. It provides access to the joint global community of Tradeweb Routing Network and Reuters Order Routing Network, comprising over 1,000 participants worldwide and processing in excess if 1.5 billion shares per day.

Ricardo Diniz, Managing Director for Thomson Reuters in Latin America, said, ” Brazil and Mexico are the most sophisticated Latin American financial markets, using advanced technology and trading the largest volumes. Thomson Reuters is pleased to expand the reach of its Reuters Trading for Exchanges offering with the support of these four leading brokers. Thomson Reuters plans to continue to support this growing community by adding new asset classes with an initial focus on the increasingly automated derivatives markets.”

Source: Reuters Thomson, 07.01.2009

Filed under: BM&FBOVESPA, BMV - Mexico, Brazil, Chile, Colombia, Data Vendor, Exchanges, Latin America, Mexico, News, Trading Technology, , , , , , , , , , , , , , , ,