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

January 26, 2012 • 12:40 am 0

Deutsche Börse launches algo news feed in Brazil

Availability in Sao Paulo data center marks expansion of “AlphaFlash” into Latin America.

Deutsche Börse – Market Data & Analytics has launched “AlphaFlash”, its algorithmic news feed, in a data center in Sao Paulo. The feed is available now in Brazil, marking AlphaFlash’s official expansion into South America.
AlphaFlash is hosted at a data center at a local exchange in Sao Paulo.

“Brazil is considered the leader in algorithmic and high frequency trading in Latin America. As this growing market continues to develop, we see greater demand from local quant traders, hedge funds and market participants to consume machine-readable news quickly and efficiently. The new data center allows customers to access AlphaFlash as fast as possible—right on the spot in Brazil, so they can swiftly execute their automated trades,” said Georg Gross, Head of Front Office Data & Analytics at Deutsche Börse.

Launched in April 2010, AlphaFlash delivers low latency, machine-readable economic indicators and corporate news. Subscribers can choose among several data packages, e.g. U.S., Canadian, European or Asia-Pacific economic indicators, U.S. and Global Treasury Auctions, the Chicago PMI as well as the Corporate News Germany feed. AlphaFlash is available in a number of data centers across the globe, including Chicago, Secaucus (New Jersey), Washington D.C., Sao Paulo, Frankfurt, London, Sydney, Tokyo and Singapore.

Source: Deutsche Börse, 25.01.2012

Filed under: Brazil, Data Management, Latin America, Market Data, News, Reference Data , , , , , ,

January 19, 2012 • 11:32 am 0

A-TEAM launches Big Data For Finance

 A-Team Group launched today – BigDataForFinance.com where it will cover the emerging science of big data and how it relates to financial markets applications – such as analysis of time series pricing, management of reference data and determination of sentiment from news archives.  A-Team will also cover the evolving technology infrastructure that underpins big data applications, from storage to analytics and business intelligence.

A-TEAM: Let’s start by addressing a working definition for big data, as we see it.  Wikipedia has a pretty good starter: “Datasets that grow so large that they become awkward to work with using on-hand database management tools.”

But here’s our improvement on that: “Datasets whose characteristics – size, data type and frequency – are beyond efficient processing, storage and extraction by traditional database management tools.”

And let’s be clear, the focus is as much on the analysis of data to derive actionable business information as it is on handling different data types and high frequency updates.

Make sure that you don’t miss news and contributions that could be valuable.  Be sure to sign up for the weekly email update here.

Source: A-TEAM, 18.01.2012

Filed under: Data Management, Data Vendor, Market Data, Reference Data, Risk Management , , , , , , , , , ,

January 19, 2012 • 10:45 am 0

IDC White Paper: Solving Big Data’s Big Challenges Can Lead to Big Advantages

Solving Big Data’s Big Challenges Can Lead to Big Advantages

The volumes and complexity of market data required by financial institutions today are immense and growing rapidly. Ongoing market changes are accelerating the growth in demand for data, and forcing financial institutions to address the challenges of what has come to be known as “Big Data”. This demand is fueled as firms develop and deploy new, more sophisticated cross-asset investment strategies.

At the same time regulatory changes are also forcing firms to source and report increasingly larger amounts of trade data, as well as to adopt higher-quality – and usually data-hungry – risk and pricing models. Investors are making similar demands of their asset managers.

Interactive Data, the reference data powerhouse, has authored a new white paper which describes these challenges in depth. It also outlines the steps financial firms may need to take in order to address them effectively. Those that do could have a notable competitive advantage over their more slow-footed rivals.

Download your complimentary copy here.

Source: IDC, 18.01.2012

Filed under: Data Management, Data Vendor, Market Data, Reference Data, Risk Management, Trading Technology , , , , , , ,

January 11, 2012 • 8:59 am 1

Webinar: Top-10 China Financial Technology Trends for 2012 – January 18,2012

While the rest of the world struggles with a lingering financial crisis, Chinese Financial institutions will continue investing in financial technology innovation in 2012. New technologies such as EMV and mobile near-field payments will drive significant investment as financial institutions continue to modernize and expand both the breadth and depth of their product offerings.

This webinar from Kapronasia will look at some of the key insights from Kapronasia’s “China Financial Technology 2012 – Top 10 Trends Shaping the Industry” report, a comprehensive look at the key issues and challenges and how banks are overcoming them.

 Title: A look at the Top-10 China Financial Technology Trends for 2012
Date: Wednesday, January 18, 2012
Time: 5:00 PM -6:00 PM CST

After registering you will receive a confirmation email containing information about joining the Webinar

Space is limited

Reserve your Webinar seat at   https://www3.gotomeeting.com/register/840131302

Source: KapronAsia, 09.01.2012

Filed under: Asia, China, Events, Exchanges, News , , , ,

January 11, 2012 • 3:42 am 0

Brazil:BM&FBOVESPA annuonces 2011 Market Performance and News

BM&FBOVESPA announced 2011 market performance.
Financial volume and number of transactions in the equity market;
  • Total number of contracts traded, DI futures contracts traded and of corn futures contracts and options on corn futures traded in the Derivatives Market;
  • Financial volume and number of equity lending transactions.

Read other highlights (update 11.01.2012):

The total financial volume and the number of trades in the equity market set a record in 2011

In 2011, the total financial volume in the Bovespa segment set a historic record of BRL1.61 trillion, surpassing the previous record of BRL1.60 trillion set in 2010. The average daily financial volume also established a new record of BRL6.49 billion, exceeding the BRL6.48 billion reached in 2010.

The total number of trades reached the milestone of 141,229,649 in 2011, surpassing last year’s record high of 106,418,437. The average daily trading volume also established a new record at 567,187, exceeding the 2010 mark of 430,844.

Historic records set in 2011:

  • Financial volume and number of transactions in the Bovespa segment;
  • Total number of contracts traded, DI futures contracts traded and of corn futures contracts and options on corn futures traded in the BM&F segment;
  • Financial volume and number of equity lending transactions.

Bovespa Segment

In 2011, the total financial volume in the Bovespa segment set a historic record of BRL1.61 trillion, surpassing the previous record of BRL1.60 trillion set in 2010. The average daily financial volume also established a new record of BRL6.49 billion, exceeding the BRL6.48 billion reached in 2010.

The total number of trades reached the milestone of 141,229,649 in 2011, surpassing last year’s record high of 106,418,437. The average daily trading volume also established a new record at 567,187, exceeding the 2010 mark of 430,844.

In December, the financial volume in the Bovespa segment was BRL130.68 billion, compared to the BRL118.72 billion registered in November. The daily average financial volume was BRL6.22 billion in December, compared to BRL5.93 billion in the previous month. There were a total of 12,746,660 transactions carried out in December compared to 12,284,986 in November, and the average daily trading volume was 606,984, compared to 614,249 in November.

Equities

In 2011, the most traded stocks were: Vale PNA, with BRL174.33 billion; Petrobras PN, with BRL125.81 billion; OGX Petróleo ON, with BRL73.22 billion; Itauunibanco PN, with BRL67.73 billion; and Vale ON, with BRL45.05 billion.

In December, the most traded stocks were: Vale PNA, with BRL11.30 billion; Petrobras PN, with BRL8.75 billion; Itauunibanco PN, with BRL5.59 billion; OGX Petróleo ON, with BRL4.33 billion; and Bradesco PN, with BRL3.66 billion

Ibovespa

The Ibovespa closed out 2011 at 56,754 points, down 18.11% for the year.

In 2011, the best performing stocks were: TIM PART S/A ON (+72.58%); CIELO ON (+53.32%); REDECARD ON (+49.20%); KLABIN S/A PN (+42.53%); and ELETROPAULO PN (+41.13%). In 2011, the worst performing stocks were: B2W VAREJO ON (-71.07%); GAFISA ON (-64.95%); HYPERMARCAS ON (-62.06%); GOL PN (-50.00%); and V-AGRO ON (-48.39%).

In December, the Ibovespa declined 0.21%.

The best performing stocks on the Ibovespa, in December, were: TRAN PAULIST PN (+16.03%); ELETROBRAS PNB (+14.06%); CPFL ENERGIA ON (+13.62%); ELETROPAULO PN (+12.97%); and LLX LOG ON (+12.33%). In December, the worst performing stocks were: V-AGRO ON (-39.62%); GAFISA ON (-23.28%); ROSSI RESID ON (-19.76%); BROOKFIELD ON (-16.67%); and CIA HERING ON (-15.02%).

All other indexes

All of the other indexes calculated by the Exchange performed as follows:

IBrX-50 (-14.06% with 8,279 points at the end of 2011; up 0.99% in December);

IBrX-100 (-11.39% with 19,706 points at the end of 2011; up 1.52% in December);

ISE (-3.28 with 2,018 points at the end of 2011; up 3.65% in December);

ITEL (+15.59% with 1,670 points at the end of 2011; up 5.11% in December);

IEE (+19.72% with 32,613 points at the end of 2011; up 9.47% in December);

INDX (-12.12% with 9,618 points at the end of 2011; up 2.31% in December);

IVBX-2 (-4.71% with 5,756 points at the end of 2011; up 0.86% in December);

IGC (-12.45% with 6,679 points at the end of 2011; up 1.76% in December);

ITAG (-11.54% with 8,708 points at the end of 2011; up 2.88% in December);

SMLL (-16.63% a 1,200 points at the end of 2011; up 0.79% in December);

MLCX (-10.39% with 877 points at the end of 2011; up 1.77% in December);

ICON (+0.55% with 1,693 points at the end of 2011; up 3.03% in December);

IMOB (-27.71% with 749 points at the end of 2011; down 5.47% in December);

IFNC (-7.40% with 3.468 points at the end of 2011; up 4.13% in December);

ICO2 (-7.37% with 1,025 points at the end of 2011; up 3.18% in December);

IBRA (-10.84% with 1,810 points at the end of 2011; up 1.68% up);

IDIV (+13.99% with 2,926 points at the end of 2011; up 5.56% in December);

IGCT (-12.36% with 1,877 points at the end of 2011; up 2% in December);

IMAT (-28.51% with 1,592 points at the end of 2011; up 0.90% in December);

UTIL (+22.61% with 2,939 points at the end of 2011; up 9.74% in December).

Market Value

The market value (market capitalization) of the 373 companies listed at BM&FBOVESPA at the end of 2011 totaled BRL2.29 trillion. In 2010, the market value was BRL2.56 trillion for the 381 companies that were listed at that time.

Special Corporate Governance Levels

At the end of 2011, the 182 companies that were part of the BM&FBOVESPA Special Corporate Governance Levels represented 64.87% of the market capitalization, 78.68% of the financial volume, and 82.72% of the trades on the cash market. At the end of 2010, there were 167 companies, representing 65.65% of the market capitalization, 75.14% of the financial volume, and 78.77% of the cash market trades.

In December, the 182 companies that were part of the BM&FBOVESPA Special Corporate Governance Levels represented 64.87% of the market capitalization, 75.82% of the financial volume, and 84.90% of the trades on the cash market. At the end of November, there were also 182 companies, representing 64.55% of the market capitalization, 82.40% of the financial volume, and 85.89% of the cash market trades.

Market Participation

The cash market (round lot) accounted for 93.9% of the total financial volume in 2011, followed by the options market with 4.3%, and by the forward market with 1.8%. The after-market traded BRL11.37 billion in 724,314 trades.

In December, the cash market (round lot) accounted for 94.6% of the total financial volume, followed by the options market with 4%, and by the forward market with 1.4%. The after-market traded BRL887.60 million with 48,002 trades, compared to BRL1.02 billion with 52,952 trades during the previous month.

Investor Participation

In 2011, foreign investors led trading in the Bovespa segment accounting for 34.74% of total contracts traded, compared to 29.57% in 2010. They were followed by institutional investors with 33.34%, compared to 33.29% in 2010, and individual investors with 21.44%, compared to 26.41% during the previous year. Financial institutions accounted for 8.65%, up from 8.35% in 2010, and companies accounted for 1.74% compared to 2.31% the previous year. The group Others accounted for 0.08% compared to 0.06% in 2010.

In December, foreign investors were also the leaders in the Bovespa segment, accounting for 39.07% of total contracts traded, compared to 32.98% in November. They were followed by institutional investors with 32.20% in December, compared to 34.29% in the previous month, and individual investors with 17.99% in December, compared to 20.46% in November. Financial institutions accounted for 8.81% in December, down from 9.33% in the previous month, and companies accounted for 1.92% in December, compared to 2.87% in the previous month. The group Others accounted for 0.01% in December, compared to 0.07% in November.

Foreign Investment

In 2011, the net flow of foreign investment into the Brazilian stock market, up to December, reached BRL8.23 billion, which is the result of BRL9.58 billion in acquisitions carried out by foreign investors in stock offerings (including BRL8.0 billion registered in Brazil) and the negative balance of BRL1.35 billion on the BM&FBOVESPA secondary market.

In December, the balance of transactions carried out by foreign investors at BM&FBOVESPA was a negative BRL2.42 billion, which was the net balance between stock sales of BRL52.08 billion and stock purchases of BRL49.66 billion.

Foreign investor participation in stock offerings, including IPOs, represented 55.3% of the total BRL17.33 billion in transactions related to the publication of the closing announcement dates ending on January 3, 2012, pursuant to information available on the Exchange’s website, under the media section.

Check the data for public offerings and IPOs

Investment Clubs

At the end of 2011, the number of investment clubs stood at 2,852, with 10 new clubs opening in December. In November, total liquid assets were BRL8.97 billion and the number of investment club participants was 117,078, according to the latest data available.

Individual Investors

At the end of 2011, the number of individual investor accounts in the equities market stood at 583,202. At the end of 2010, that number was 610,915.

ETFs

In 2011, the 10 ETFs available for trade at BM&FBOVESPA (BRAX11, CSMO11, MOBI11, BOVA11, SMAL11, MILA11, PIBB11, IT NOW IFNC 11, IT NOW ISUS 11, and IT NOW GOVE 11) reached a total financial volume of BRL12.11 billion with 577,723 transactions carried out. In 2010, there were seven ETFs (BRAX11, CSMO11, MOBI11, BOVA11, SMAL11, MILA11, PIBB11), which together accounted for a total financial volume of BRL6.99 billion, and 196,567 transactions.

In December, 74,438 transactions were carried out with the 10 ETFs available for trade at the Exchange. In November, that number was 86,037. The total financial volume in December was BRL1.21 billion, compared to BRL1.45 billion in November. In December, the ETF BOVA11 registered the largest financial volume with BRL1.15 billion, compared to the BRL1.37 billion it registered in November.

Securities lending

In 2011, securities lending transactions at BM&FBOVESPA reached a new milestone with a financial volume of BRL732.75 billion and 1,417,787 trades, surpassing 2010’s financial volume of BRL465.6 billion and 971,558 trades.

In December, the financial volume for securities lending transactions also set a new record with BRL84.76 billion, exceeding the mark of BRL67.30 billion set in November. The number of transactions in December was 121,897, compared to 122,983 in November.

Real Estate Investment Funds

In 2011, Real Estate Investment Funds (FIIs) accounted for a financial volume of BRL912.46 million and 77,075 transactions. During the previous year, they accounted for a financial volume of BRL379.09 million and 24,983 transactions. At the end of 2011, there were 66 Real Estate Investment Funds registered and authorized for trade on the BM&FBOVESPA markets and on its OTC market.

In December, Real Estate Investment Funds (FIIs) accounted for a financial volume of BRL144.16 million and 7,617 transactions. During the previous year, they accounted for a financial volume of BRL78.54 million and 7,812 transactions.

Fixed Income

In 2011, the financial volume for the fixed income secondary market, counting both the Bovespa Fix and the Soma Fix, totaled BRL268.14 million, compared to BRL416.20 million in 2010. Of this total, debentures accounted for BRL142.78 million, Receivables Investment Funds (FIDC) accounted for BRL25.17 million, and Mortgage Backed Securities (CRI) accounted for BRL100.19 million.

In December, the financial volume for the fixed income market, counting both the Bovespa Fix and the Soma Fix, totaled BRL14.4 million, compared to BRL9.5 million in November. Of this total, debentures accounted for BRL11.76 million, and Mortgage Backed Securities (CRI) accounted for BRL2.38 million.

BM&F Segment

Em 2011, the BM&F segment set a new record for contracts traded with 671,979,899, surpassing the previous 2010 record of 618,634,157. The financial volume in 2011 totaled BRL46.50 trillion, compared to a total of BRL42.51 trillion in 2010, and the average daily trading volume in 2011 was 2,687,920, compared to 2,494,493 in 2010.

In December, the markets in the BM&F segment accounted for a total of 43,358,744 contracts traded and a financial volume of BRL3.10 trillion, compared to 54,301,136 contracts and BRL3.87 trillion in November. The average daily trading volume in December was 2,064,702, compared to 2,715,057 in November. Open interest contracts ended the last trading day of December with 38,230,036 positions, compared to 37,001,711 in November.

Check the data for General Volume

Financial Derivatives

In 2011, the interest rate futures (DI) traded a record 320,821,062 contracts, compared to the previous record of 293,065,417 set in 2010. The US dollar futures ended the year with 86,167,955 contracts traded, compared to 82,453,621 in 2010. The Ibovespa futures traded 21,650,138 contracts in 2011, compared to 18,039,345 during the previous year, and in 2011 the Euro futures (EUR) traded 552,481 contracts up from 390,295 in 2010.

In December, the interest rate futures (DI) accounted for 21,511,662 contracts, compared to 28,561,969 in November. The US dollar futures ended December with 6,239,499 contracts traded, compared to 7,189,024 in November. The Ibovespa futures traded 1,618,153 contracts compared to 1,774,340 during the previous month, and, in December, the Euro futures (EUR) traded 34.546 contracts down from 62.901 in November.

Mini Contracts

In 2011, derivatives mini contracts traded 28,517,331 contracts compared to 18,700,470 in 2010. The Ibovespa futures traded 26,234,515 mini contracts in 2011, up from 16,705,118 in 2010, and the US dollar futures accounted for 1,710,007 mini contracts traded compared to 1,969,427 in 2010.

In December, derivatives mini contracts traded 2,338,964 contracts compared to 2,663,926 in November. The Ibovespa futures market traded 2,172,318 mini contracts, compared to 2,473,109 the previous month. The US dollar futures market traded 164,136 mini contracts down from 186,664 in November, and the open interest on mini contract futures ended December with 14.852 positions compared to 43,983 in November.

Commodity derivatives

In 2011, a total of 2,389,454 futures and options commodity contracts were traded, down from 2,702,705 in 2010.

A total of 558,311 Corn futures and options contracts were traded in 2011, surpassing the previous record of 490,265 in 2010. Live cattle futures and option contracts totaled 1,170,100 in 2011, down from 1,352,469 in 2010. Arabica coffee ended 2011 with 463,121 contracts traded compared to 694,348 in 2010, while the Ethanol futures market traded 94,726 contracts in 2011, up from 22,615 in 2010 and the Soybean market traded 70,639 contracts.

In December, a total of 160,585 futures and options commodity contracts were traded, down from 245,561 in November. When trading closed in December there were 129,006 open interest contracts, compared 133,410 at the end of the previous month.

Live cattle futures and options contracts totaled 82,627, in December, compared to 160,824 in November. Corn closed out the period with a total of 44,768 futures and options contracts traded, up from 42,279 in November. Arabica coffee ended December with 23,106 contracts traded, down from the 28,791 contracts traded in November. The Soybean market registered 3,310 contracts in December compared to 6,622 during the previous month, and the Ethanol futures market accounted for 6,774 contracts traded, compared to the 7,045 contracts traded in November.

Click here for the monthly commodities report

Agribusiness Securities

After adding up all of the transactions carried out in the SRTA registration system, the agribusiness securities registered at BM&FBOVESPA totaled BRL8.68 billion in 2011, compared to BRL1.24 billion in 2010. In 2011, a total of 46,690 records were also checked for agribusiness securities, and together they represented the cumulative financial volume of BRL29.43 billion, up from the 15,270 records with a trading volume of BRL10.05 billion in 2010. The stock of LCAs (Agribusiness Credit Bills) registered in the stock market in 2011 totaled BRL7.46 billion, compared to the BRL297 million registered during the previous year.

After adding up all of the transactions carried out in the SRTA registration system, the stock of agribusiness securities registered at BM&FBOVESPA totaled BRL8.68 billion in December, compared to BRL8.02 billion in November. The stock of LCAs totaled BRL7.46 billion in December, compared to BRL6.77 billion in November.

Spot Gold

In 2011, the spot gold market (250 grams) traded 23,579 contracts, compared to 9,567 in 2010. The financial volume for the spot gold market totaled BRL509.80 million, compared to BRL179.02 million the year before.

In December, the spot gold market (250 grams) traded 749 contracts, down from 2,240 in November. The total financial volume in December was BRL18.03 million, compared to BRL55.44 million in the month before.

Spot Dollar

In 2011, the spot US dollar totaled 12,859 transactions with a financial volume of US$32.89 billion, compared to 14,339 transactions and a financial volume of US$31.41 billion in 2010. The financial volume of U.S. dollars traded on the Brazilian interbank settlement market and registered in the BM&FBOVESPA FX Clearinghouse was US$588.83 billion, with 31,462 trades, down from US$718.31 billion and 36,428 trades in 2010.

In December, the spot dollar totaled 1,547 transactions with a financial volume of US$2.07 billion. In November, 1,999 transactions were registered with a financial volume of US$2.17 billion. In December, the financial volume of U.S. dollars traded on the Brazilian interbank settlement market and registered in the BM&FBOVESPA FX Clearinghouse was US$40.62 billion with 2,711 transactions, compared to US$37.65 billion and 2,475 transactions in November.

Public Fixed Income

In 2011, the financial volume for the public fixed income secondary market, counting all the transactions carried out on Sisbex, totaled BRL257.58 billion, compared to BRL116.89 billion in 2010. Of this total, BRL5.1 billion was related to final transactions and BRL251.1 billion was related to repo transactions. The financial volume for public securities lending transactions totaled BRL1.36 billion in 2011.

In December, the financial volume for the public fixed income secondary market, counting all the transactions carried out on Sisbex, was BRL18.6 billion, up from BRL6.9 billion in November. Of this total, BRL32.10 million was related to final transactions and BRL18.57 billion was related to repo transactions.

Investor Participation

In 2011, financial institutions led trading in the markets of the BM&F segment accounting for 36.41% of total contracts traded, compared to 42.40% in 2010. They were followed by institutional investors with 31.27% in 2011, compared to 29.61% in 2010, and foreign investors with 25.86% compared to 22.40% during the previous year. Individual investors ended the year with 5.22%, up from 3.88% in 2010, and companies accounted for 1.24%, compared to 1.71% the previous year.

In December, financial institutions led trading in the markets of the BM&F segment accounting for 38.08% of total contracts traded, compared to 35.75% in November. They were followed by institutional investors with 32.53%, down from 34.49% the previous month. During this same period foreign investors accounted for 23.04%, compared to 23.18%. Individual investors ended the year with 4.48% in December compared to 5.19% in November; and companies accounted for 1.83%, up from 1.34% the month before.

Individual investors

At the end of 2011, there were 135,256 individual investors with at least one active account registered at the Derivatives Clearinghouse, compared to 137,820 at the end of the previous year.

DMA

BM&F Segment

In December, the transactions carried out via Direct Market Access (DMA) in the BM&F* segment totaled 25,617,886 contracts traded in 2,483,514 trades. During the previous month, 31,537,229 contracts were traded in 2,887,206 trades.

The volumes registered by each DMA model in the BM&F segment were as follows:

Traditional DMA – 12,266,856 contracts traded in 879,061 trades in December, compared to 15,783,631 contracts traded in 1,219,049 trades in November;

Via DMA provider (including orders routed via the Globex System) – 8,225,628 contracts traded in 234,539 trades in December, compared to 10,736,890 contracts traded in 252,343 trades the month before;

DMA via direct connection – 1,255 contracts traded in 303 trades in December, up from 1,034 contracts traded in 289 trades during the previous month; and

DMA via co-location – 5,124,147 contracts traded in 1,369,611 trades in December, compared to 5,015,674 contracts traded in 1,415,525 trades in November.

In December, the transactions carried out by foreign investors who were presented to BM&FBOVESPA by CME (which either use the order routing system or access the BM&FBOVESPA markets via co-location) totaled 2,240,922 contracts traded in 537,582 trades. In November, those totals were 2,297,168 and 554,624 respectively.

BOVESPA Segment

In December, the transactions carried out via Direct Market Access (DMA) in the BOVESPA*segment had a total financial volume of BRL86.68 billion in 12,297,326 trades. During the month of November, those numbers were BRL92.18 billion and 11,690,154 respectively.

The volumes registered by each DMA model in the BOVESPA segment were as follows:

Traditional DMA – BRL71.67 billion in 9,727,649 trades in December, compared to BRL76.89 billion in 9,411,041 trades in November;

Via DMA provider – BRL1.04 billion in 188,596 trades in December, compared to BRL981.77 million in 119,734 trades in November; and

DMA via co-location – BRL13.87 billion in 2,369,659 trades in December, compared to BRL14.21 billion in 2,150,118 trades in November.

* Direct access to the BM&FBOVESPA market segments is carried out through DMA models 1, 2, 3 and 4.

In model 1 or traditional DMA, the client accesses the trading system through technological intermediation of a brokerage house.

In model 2 or via DMA provider, the client does not use the technological intermediation of a brokerage house, but rather connects to the system through an authorized access provider. DMA via order routing with CME Globex is also a form of DMA model 2.

In model 3 or DMA via direct connection, the client connects to the system through a direct connection.

In model 4 or DMA via co-location, the client installs its own computer within the Exchange’s facilities.

Notes: The volumes registered by access modality include both buy and sell sides of a trade. The volumes by access modality for both the BM&F and the Bovespa market segments have been reported in a consolidated manner in the BM&FBOVESPA statements since May 2009.

Source: BM&FBOVESPA, 10.01.2012

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

January 10, 2012 • 12:10 pm 0

SunGard -10 Historical Market Data Trends for 2012

Oliver Muhr, senior vice president of SunGard’s MarketMap business unit, said, “Economists, equity, fixed income researchers and quant traders need historical data to better understand growth opportunities and validate market positions and trading strategy. This requires not only more data, but more minute and granular information provided in a fast and efficient manner. SunGard offers information management tools that help enterprises filter and deliver accurate data for price discovery, financial modeling, risk management and business intelligence.”

The ten market data trends SunGard has identified for 2012 in historical data management are:

Transparency (Transparency and Evaluation Prices White Paper):

1. Firms need more consistent and timely reporting to meet new regulations and investor demands, creating greater strain on data infrastructures that feed risk reporting
2. Risk reports will be required by regulators and investors almost daily, while on-demand data will be needed to meet more advanced analytics
3. Greater transparency in analyzing the relationships between asset classes, such as complex derivatives, is driving the need for standardized entity and security identifiers, and cross symbology

Efficiency:

4. Larger data sets are required to feed predictive models, as more historical data over longer time periods and increased granularity of data sets power back-tests, forecasts and trading impacts throughout the day
5. Firms are focused on controlling variable data costs by centralizing historical data in one location to assess best price
6. Practitioners such as MBAs and CFAs want more flexible data management solutions that require less IT support so that they can spend more time discovering market opportunities
7. With globalization of markets, historical data brings greater complexity in terms of cross-border currencies, valuations and accounting standards – requiring improved accuracy and more market data coverage across assets and regions

Networks:

8. In order to perform advanced analytics and calculations required to support electronic trading strategies, firms must implement platforms that can store greater quantities of data and quickly retrieve and accurately process historical and time series data.
9. Vector storage, rather than traditional relational databases, will be needed to understand complex trends and scenarios
10. Cleaning and storing historical data is driving firms to seek plug-and-play technology that fits with industry standard infrastructures

Paul Rowady, senior analyst at TABB Group, said, “Data management has been, and always will be, an among the most critical components of the quantitative process. It is well known in the quant world that the depth of historical archive – the timeframe of data used for backtesting – is inversely proportional to the turnover of the strategy in question. Therefore, today’s trend toward slower-turnover strategies means that a proportional increase in the scale of the data will be required, as well as the most granular data possible in order to provide maximum flexibility for strategy development today and down the road.  In fact, dealing with data at the granular level and in a hands-on environment is paradoxically the most valuable exercise a quant can do to understand subtle market inefficiencies.”

Source: SunGard, 09.01.2012

Filed under: Data Management, Data Vendor, Market Data, Reference Data, Risk Management , , , , , , ,

January 10, 2012 • 8:24 am 0

Singapore: SGX introduces Investor Education Portal

Singapore Exchange (SGX) is introducing the ‘My Gateway’ portal to meet increasing investor interest for more investment knowledge and education.

Located at www.sgx.com/mygateway, the portal provides one-stop shop access to market updates, video clips on investment products, information on seminars or courses which investors can sign up for, and tools like investment or profit and loss calculators.

The portal launch comes amid increasing interest among individuals in investment information and education. In 2011, over 7,800 participants attended the more than 150 investor education activities organised by SGX Academy. In the second half of 2011, participation at investment seminars and professional courses grew 31% and 83% respectively from the first half of the year.

“We recognize that investors are hungry for information on investments and are looking for flexibility in learning. We therefore want to encourage investors to take advantage of the newly launched portal on SGX website to learn about investing at their own time and pace,” said Mr Chew Sutat, SGX Executive Vice President, who oversees the Academy.

“The high participation rate in these education activities reflects a strong desire by investors to be proactive in their investments. We believe the new portal will complement this desire and cater to the continuing education needs of investors,” said Mr Chew.

“Investors should take responsibility of their investments. They should commit to equip themselves with the right knowledge to know – firstly, their risk appetites; secondly, the available products and finally, what investment strategies to adopt. I am encouraged that SGX has launched this self-help portal for investors,” said Mr David Gerald, President of Securities Investors Association (Singapore).

More information on SGX Academy seminars and courses can be found at www.sgx.com/academy.

Source: MondoVisione, 10.01.2012

Filed under: Asia, Exchanges, Singapore , , , , , , ,

January 6, 2012 • 2:51 am 0

Alternative Latin Investor: Latam Family Office January 2012 Issue Nr 13

The Alternative Latin Investor Issue #13 is focusing on family offices.  With some great content this issue, from maverick economist Doug Casey, estimates on the effect of climate change in the region, and of course with premium focus looking at the needs, attitudes and opinions of family offices in LatAm. Below some of the other content of issue #13.

 Renewable Energy 

  • Electric Energy Storage in Latin America: Smart Grid Technologies.

Funds 

  • Top Ten LatAm Hedge Funds
  • Mutual Funds in Argentina
  • Latin America fund assets to exceed $3 trillion by 2020

Emerging Markets

  • 2012 Should Be Better: A wasted year for LatAm Stock Markets
  • Investors Beware of Brazilian FIDCs (ABS) Backed by Consumer Credit

Agribusiness

  • Gauging the Effects of Climate Change on Brazilian Agri Output
  • 2011 Agribusiness Round Up

Forex

  • SPOT-trade’s Facundo Molina on Forex and CDFs
  • Mitigating Currency Risk when investing in LatAm

Private Equity 

  • A Primer on Colombian Taxes for the PE Investor

Art

  • Meso-American Remix
  • LatAm auction recap: Sotheby’s and Christie’s

Issue Focus: LatAm Family Business

 Please view and access Issue 13 in the following formats

Virtual Viewer
http://www.alternativelatininvestor.com/issue13.html
PDF
http://www.alternativelatininvestor.com/issue13.pdf 

For more details and information please view http://www.alternativelatininvestor.com

Source: AlternativeLatinInvestor 23.12.2012

Filed under: Argentina, Brazil, Central America, Chile, Colombia, Energy & Environment, Events, Latin America, Mexico, News, Peru, Services, Wealth Management , , , , , , , , , , , , , , , , , , , , , , , , , ,

December 16, 2011 • 11:45 am 0

NYSE Technologies opens Tokyo liquidity centre

Nyse Technologies, the commercial technology division of Nyse Euronext, today announced the opening of its latest Liquidity Center installation located in Tokyo, Japan.

With growth in Asian markets outpacing many others in the world, the NYSE Technologies Tokyo Liquidity Center offers customers the ability to access these markets with unparalleled speed and reliability with minimal infrastructure costs and a dramatically decreased time to market of only a few weeks to begin trading.

As a result of several recently deployed trading platforms and enhanced data feeds, Tokyo markets have experienced increased trading activity and a consolidation of liquidity from a robust community of traders and vendors, many of which are already members of the Metabit network acquired by NYSE Technologies in September 2011. Through the Liquidity Center’s low-cost, high performance product suite, customers can access key Asian markets, market information and other essential electronic trading infrastructure services utilizing NYSE Technologies’ SFTI network and other familiar infrastructure services, including the Capital Markets Community Platform. The Tokyo Liquidity Center joins existing facilities in the U.S. and London with additional centers launching in Toronto and Brazil in the coming months.

“In working with our customers to identify their primary trading needs and opportunities, we found that Tokyo and the surrounding Asian markets were a very high priority,” said Stanley Young, CEO, NYSE Technologies. “Our Tokyo Liquidity Center addresses those needs with a powerful blend of proven, familiar NYSE Technologies services with seamless connections to all major Tokyo markets. With little to no hardware investment or complicated maintenance, we can have customers connected in just a few weeks as compared to the challenging expense and arduous process of designing, building and maintaining a similar infrastructure themselves.”

The NYSE Technologies Tokyo Liquidity Center was built to facilitate seamless access to key markets and market information in Asia, including the Tokyo Stock Exchange’s new Tdex+ system and arrowne arrownetTM network. Offering a fully managed, broker neutral trading infrastructure solution that utilizes the technology expertise and customer network recently acquired in the Metabit transaction, the liquidity centers also feature many of the same components customers already use to access NYSE Euronext’s global exchanges. Each installation will feature a turn-key portfolio of trading products that include full-featured connectivity, market data, order transmission and risk management services with world-class customer support.

About the Liquidity Center Network
The NYSE Technologies Liquidity Center Network was created to provide a base set of trading, data and connectivity applications that enable traders to quickly and easily enter key global markets that may have been prohibitively difficult or expensive to access in the past. Customers will benefit from reliable, cost effective low-latency solutions for trading and market data services. Strategically located around the world, these facilities will offer many of NYSE Technologies core services, including Metabit MLH which provides low latency, risk-managed access to markets; SuperFeed™, an industrial strength, high-performance market data ticker plant and distribution system; and Marketplace™, one of the largest and most diverse FIX-based trading communities with more than 1,200 market participants.

Source, Finextra, 15.12.2011

Filed under: FIX Connectivity, Japan, Trading Technology , , , , , , , , ,

December 14, 2011 • 7:32 am 0

SunGard Opens Trading Network Hub in Chile

SunGard has established a SunGard Global Network (SGN) hub in Santiago, Chile. SGN provides global order routing, market data and associated services on 120 markets worldwide, linking 2000 asset managers and 500 broker dealers. The Santiago hub, SunGard’s third in Latin America after Mexico City and Sao Paulo, will provide international investors with access to Bolsa de Comercio de Santiago (BCS), Chile’s equity and derivatives exchange. In addition, financial institutions in Chile will be able to access the SGN brokerage community.

SunGard will also offer Valdi Market Access to Chile, which delivers Software-as-a-Service* (SaaS) based connectivity to markets worldwide through SGN. This direct market access service gives exchange members and their clients the ability to trade on electronic markets from any application connected to SGN. It is fully managed by SunGard, helping reduce their infrastructure and support costs. For Bolsa de Comercio de Santiago (BCS), the Valdi Market Access servers will be directly co-located at the exchange, offering low latency services.

Mr. Andres Araya Falcone, chief information officer of the Bolsa de Comercio de Santiago, said, “Chile continues to grow, and the region is focused on being an important player in the global economy. SunGard is supporting this growth by providing electronic trading solutions and global connectivity to market participants in Chile, which will help our exchange members find new investment opportunities. In facilitating exchange connectivity, this should also help attract new firms to the Bolsa de Comercio de Santiago.”

Danielle Tierney, an analyst at Aite Group, said “Opening a new hub in Santiago is a very strategic placement for SunGard. Santiago is the third largest individual exchange in Latin America by market capital and volume, in addition to being a part of the MILA integration of the Andean exchanges. By establishing this additional point of connectivity, SunGard has essentially made its SGN hub into a pan-LatAm offering.”

Philippe Carré, global head of connectivity of SunGard’s global trading business, said, “SunGard’s Valdi and SGN address the connectivity and execution challenges of trading multiple asset classes on multiple markets. SunGard already offers Valdi and SGN solutions in Argentina, Brazil, Chile, Colombia, Mexico and Peru, helping traders in Latin America access new markets and diverse liquidity, as well as helping international traders access Latin America markets.”

Source: A-TEAM Electronic Trading, 13.12.2011

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

December 9, 2011 • 8:10 am 0

The Global Crisis Reaches China: Unrest Spreads as Growth Stalls

China’s leaders are currently contending with declining demand, rising debt and a real estate bubble. Some factories are laying off workers, suffering financial losses or even closing as orders from crisis-plagued Europe dry up. The economic strains are frustrating workers and consumers in the country, threatening the political establishment and Beijing’s economic miracle.

This October was the third straight month Chinese exports decreased. Along with it, the hopes of German manufacturers that Asia’s growth market might help lift them out of the global crisis as it did in 2008 are also evaporating. This time China faces enormous challenges of its own — a real estate market bubble and local government debt — that could even pose a risk to the global economy.

Related article: Every Chinese Province bankrupt like Greece –  Chinese Regime nearly bankrupt  – 17.11.2011

A police special forces unit appears suddenly. One moment, a worker named Liu* is marching back and forth in front of city hall in Dongguan, China, with about 300 colleagues from the bankrupt factory Bill Electronic. “Give us back the money from our blood and sweat!” they chant.

The next moment, their shouts turn to screams as a few hundred uniformed police with helmets, shields and batons, along with numerous plainclothes security forces, leap out of olive green police vans. The demonstration leaders, including Liu, are rounded up on the side of the street by police dogs. Within just a few minutes’ time, the communist authorities have successfully suffocated the protest.

The men and women, most of them young adults, are packed into yellow buses and hauled back to their factory, where the government exerts massive pressure: By afternoon, they must consent to make do with 60 percent of the wages they are owed by the employment office. Anyone who refuses, officials warn, will receive nothing at all.

The new global crisis has reached China. Debt problems in Europe, the country’s most important trading partner, are starting to dim prospects here in the nation that has effectively become the world’s factory, as well. The unstable United States economy and threat of a trade war between the two superpowers make the situation even more uncertain. As the US presidential election campaign starts too heat up, American politicians are vying to outdo one another in protectionist declarations directed toward their communist rival.

Disillusioned Workers

For Liu, the factory worker, his country’s economic miracle is certainly over for now. Until recently, he worked 12 hours a day assembling accessories for DVD players. But then there was less and less work to do, he says, and a while back, the boss informed workers that fewer orders were coming in from Europe.

After the police break up the demonstration, Liu, now daunted, wanders through his city’s dusty streets, passing row upon row of factories and residential buildings. “We just wanted our full wages, but they set the police on us,” he says. He’s lost his faith in the party and the government.

Especially here in the export region of Guangdong, an experimental laboratory of Chinese capitalism, hardly a day goes by without new bankruptcies or protests. The Yue Chen shoe factory in Dongguan, which produces athletic shoes for a parent company in Taiwan that supplies brands such as New Balance, is in a state of emergency. With orders dropping off, the manufacturer has fired 18 managers. Workers have seen overtime pay eliminated, and normal wages are barely enough to live on. Frustration is so high that some shoe factory workers also went to protest in front of city hall. About 10 of them were injured in the clash with police, some young women from the factory report.

The situation outside the gray factory complex is tense. Thugs in plainclothes guard the entrance, photographing and intimidating anyone who talks to the workers. Inside the factory, the showdown between bosses and employees goes on. Workers sit inactive in cheerless factory rooms. The management has switched off the power in some of the halls where workers normally sew and glue together shoes.

In the rest of China as well, more and more assembly lines are grinding to a halt. In Wenzhou in eastern China, a city known for making cheap lighters, shoes and clothes, a large number of business owners are on the run from their creditors, the private shadow banks that last lent them money. Some of these businesspeople even secretly removed machinery from their factories before taking off.

Demand Drop in Europe and China

China’s showcase industries are also feeling the crunch of the drop in European demand. Suntech Power Holdings, for example, which manufactures solar panels in Wuxi, near Shanghai, reported third-quarter losses of $116 million (€87 million). During the same quarter of the previous year, the company generated $33 million in profits.

Just recently, Asia’s champion exporter was the object of admiration from foreign executives and politicians, a victor in the global financial crisis. Some even believed they’d found a superior alternative to crisis-ridden Western-style market economies in Beijing’s authoritarian-style capitalism.

German carmakers, in particular, let themselves be carried away by China’s growth and made enormous investments. China is Volkswagen’s most important market, and the company hopes to sell 2 million cars there by the end of this year.

But the car boom is slowing. “We haven’t received a single new order in nine days,” admits a smartly dressed salesman at Dongguan’s Porsche dealership. “We’ve never experienced that before.” Many business owners are short on cash, he adds. “They used to mostly pay cash, but now they prefer to buy on credit.”

Cheap Chinese brands such as BYD (“Build Your Dreams”) are also having a harder time selling their cars. Important governmental tax incentives for buying cars ran out last year, and major cities such as Beijing are attempting to ease their congested streets by restricting the number of new automobiles. In October, people in China bought roughly 7 percent fewer cars than in the previous month.

Economic Missteps?

At first, it seemed as if Beijing’s state capitalists had found the magic recipe for endless growth. In 2009, they pumped 4 trillion yuan (the equivalent of €430 billion) — China’s largest stimulus package in history — into building ever more modern highways, train stations and airports. Tax incentives led millions of farmers to purchase refrigerators and computers for the first time.

More or less on the party’s orders, banks threw their money at the people’s feet, and local governments were particularly free about getting themselves into debt. By the end of 2010, outstanding debt stood at 10.7 trillion yuan — nearly a quarter of China’s entire economic output.

Much of these funds went, directly or indirectly, into real estate construction. Local governments discovered that selling land for building made for a lucrative source of revenue — and of collateral, so banks would continue to issue new loans. Thousands of farmers were driven off their fields so that villas and apartment buildings could be built.

Many of those development projects, often megalomaniac undertakings from the start, are now ghost towns. In China’s 15 largest cities in October, the number of newly auctioned building plots decreased by 39 percent compared to October 2010.

While many in the West hold out hope that China can solve the euro and dollar debt crisis with its foreign currency holdings, the rift between rich and poor within the country is growing. The “harmonious society” promised by Hu Jintao, head of the government and of the Communist Party, is at risk.

The country’s central bank has increased interest rates five times since mid-2010 to get inflation under control, while at the same time forcing banks to hold larger reserve funds. Beijing hopes this method will allow it to orchestrate a “soft landing” from its own economic boom. But the maneuver entails risks. Along with the construction industry, the motor driving China’s economy up until now, other sectors such as cement production, steelmaking and furniture construction stand to lose vitality as well.

Part 2: Will Rising Middle Class Turn against Government?

If the real estate bubble bursts, it is sure to turn China’s rising middle class against the government. Until now, the nouveau riche has viewed the Communist Party as a guarantee of their own prosperity. Recently, however, outraged apartment owners organized a demonstration in downtown Shanghai, protesting the decline in the value of their property.

Wang Jiang, 28, points to a nearly complete apartment block in Anting, one of the city’s suburbs. The software company manager bought an apartment on the 16th floor of the building for €138,000 in early September. It was a steep price for 82 square meters (883 square feet), especially since the building is located in an industrial area, hemmed in by factories and highways. But Wang was determined to get in on the boom. He didn’t even take the time to view the housing complex before he bought the apartment. Where else, after all, should he have invested his assets, if not in real estate?

Now China’s state-run banks are paying their customers negative interest and Shanghai’s stock market is considered a high-risk casino, where a few major governmental investors are believed to manipulate exchange rates at will.

Wang’s apartment isn’t even finished yet, but he no longer feels any joy about moving in — not now that the real estate company is offering similar apartments in the same complex for about 20 percent less.

Wang feels he was deceived about his apartment’s resale value. “What are they thinking?” he demands. “Surely they can’t just erase a portion of my assets?”

But they can.

Wang and many other furious apartment owners went to the real estate company’s salesroom to protest the drop in value. Suddenly, Wang relates, someone started smashing the miniature models of apartments. After that, in the blink of an eye, the company’s guards grabbed him and hauled the protesters to the police in minibuses. “We were interrogated until 2 a.m. in the morning,” Wang says. Some of the protesters, he adds, are still in prison and authorities won’t tell their families anything.

A Political Quandary

Whether in Dongguan or Shanghai, cracks seem to be forming everywhere in Chinese society. As long as the one-party dictatorship kept growth in the double digits, most people accepted their lack of freedom. Now, though, Beijing is facing a dilemma. Tough police crackdowns will hardly get the consequences of the stagnating economy under control in the long term. But nor are government subsidies enough to stimulate the economy. It seems neither money nor force will help.

Chinese Premier Wen Jiabao recently announced a “fine-tuning” of his economic policy: Banks should grant more generous loans, especially to small and medium-sized export companies, he said.

The economic situation now is far more complicated than it was after the 2008 global financial crisis, says economist Lin Jiang. In 2008, Chinese exports collapsed and roughly 25 million migrant workers had to return from factories to their home provinces.

Back in Dongguan, authorities have no cause at the moment to fear any further protest from Liu, the factory worker. He’s too busy looking for a new place to stay. When he lost his job, he also lost his spot in one of the electronics factory’s residences.

* Liu’s name has been changed by the editors in order to protect his identity.

Source: Spiegl Online, 08.12.2011 By Wieland Wagner

Filed under: China, Countries, News, Risk Management , , , , , , , , , , , , , ,

December 7, 2011 • 11:36 pm 0

NYSE Technologies extends CameronTec FIX enginee relationship in Asia Infrastructure

 CameronTec, the global financial industry’s long-standing provider of FIX infrastructure and connectivity solutions and wholly owned subsidiary of Orc Group (SSE: ORC), today announced an agreement with NYSE Technologies to continue providing the CameronFIX and Catalys technologies for its Asian operations.  Signed in August, the agreement also covers reseller rights for CameronTec products in Japan and is based on CameronTec’s licensing subscription model.

NYSE Technologies recently acquired Metabit, the Tokyo-based provider of high performance market access products that includes a trading community of more than 140 trading firms throughout Japan and Asia.  Continuing the existing relationship between Metabit and CameronTec, CameronFIX has powered many of Metabit’s valued market assets and solutions since 2002.

“Japan and Asia are key priorities for NYSE Technologies and our global customers.  Our products are built in Asia for the local market and CameronFIX has been an important part of that strategic offering since 2002,” said Daniel Bürgin, Head of Asia Pacific, NYSE Technologies. “As a new product line within NYSE Technologies, Metabit will continue to work with CameronTec to provide high performance connectivity to Japan’s exchanges while offering local market participants access to and support for Cameron’s suite of solutions.”

“We are especially pleased to be working alongside NYSE Technologies to continue to deliver FIX technology as part of the Metabit product suite and have them support our products throughout such a critical market as Japan,” says Anders Henriksson, CEO, CameronTec. “CameronTec is continuously working to improve the standard in FIX infrastructure and to provide our markets with cutting edge innovation for which we are renowned. These developments are a further demonstration that CameronTec continues to lead the industry in FIX innovation.”

At the core of CameronTec technology is a unique understanding of the FIX world that comes from a concentration of the world’s largest FIX deployments. With a host of industry-firsts, Catalys and CameronFIX technology provide unprecedented levels of flexibility and innovation that firms need to sustainably differentiate in today’s markets.

Source: NYSE Technologies, 07.12.2011

Filed under: Asia, Hong Kong, Japan, Korea, Malaysia, Singapore , , , , , , , , , , ,

December 7, 2011 • 2:49 am 0

Alternative Latin Investor: Latam Fund & Investment Trends- December 2011 Issue Nr 12

Latin America fund assets to exceed $3 trillion by 2020
-Driven by appetite for Asia – U.S. and European asset managers benefit most

While still smaller than other global regions in terms of aggregate assets – around US$1.4 trillion in mutual fund assets and about $710 billion in pension assets – fast growth in Latin America as a region is capturing the imagination of investors, distributors and asset managers alike, with tactical and strategic opportunities prompting resource allocations and investments.

Subscribe to the free issue of  at http://www.alternativelatininvestor.com/index.html.

Source: Alternative Latin Investor, 06.12.2011

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

December 6, 2011 • 8:44 am 0

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 , , , , , , , , , , , ,

December 2, 2011 • 10:58 pm 0

Brazil: Foreign investors exempetion from paying 2% IOF tax on equity trades BM&FBOVESPA

The Brazilian government has repealed a tax placed on foreign investors trading equities, in a move which domestic exchange BM&F Bovespa believes is sure to stimulate trading activity in the country.

The IOF tax, which stood at 2% for equities since its launch in October 2009, has now been eliminated. The tax was also removed for debt instruments that have a tenor of four years or longer.

The levy was introduced by the Brazilian government in order to help it control the rapid appreciation of the Brazilian real. It was initially set at 2% for all initial investments made by foreigners in fixed income and derivatives transactions. The tax was increased to 6% for fixed income transactions in October 2010.

“We are not easing our currency policy. If there is any risk of the currency appreciating, we will increase the IOF on derivatives,” Brazilian finance minister Guido Mantega is reported to have said at a press conference today.

The announcement by the Brazilian government had an instant positive impact on equities prices in the country, with shares in BM&F Bovespa surging by almost 7% today.

“By reducing the IOF to 0% on foreign investments for equities, the government has sent a clear message about the importance of the capital markets as a way to support local companies,” Sergio Gullo, chief representative for BM&F Bovespa in EMEA, told theTRADEnews.com. “The removal of the tax will encourage more foreign investment to our market.”

The removal of the IOF tax may also help to bring more high-frequency trading (HFT) to Brazil, the increase of which BM&F Bovespa has identified as a key aspect of its growth strategy. Gullo says that the exchange believes HFT will reach 20% of overall equity trading volumes in the next few years.

As part of its plans to attract HFT, BM&F Bovespa has partnered with US exchange operator CME Group to develop Puma, a new US$200 million multi-asst class trading platform. The new platform will be able to process 200 million messages per day and offer an average round-trip latency of 1.1 milliseconds.

“The removal of the tax has very little downside and it appears that the Brazilian government is not concerned about the effect of equity trading on currency appreciation,” said Danielle Tierney, analyst at consultancy Aite Group. “It will be more of a positive for HFT firms than traditional market participants. The exchange should have no trouble in reaching its 20% HFT target.” Source: Trade News, 01.12.2011

São Paulo, December 01, 2011 – BM&FBOVESPA considers the measure that the Brazilian government announced today as bang on target, demonstrating an understanding that the Brazilian market is going through a moment of great opportunities and also constitutes a fundamental instrument for companies’ growth and the development of the country.

Between 2004 and 2011, Brazilian companies held 232 public share offerings, of which 138 were IPOs. These operations resulted in a total of BRL 370.7 billion raised, which went towards these companies’ growth projects, contributing towards a significant increase in job creation and incomes in Brazil. It is important to bear in mind that around 70% of this volume came from foreign investors.

Brazil’s capital market has a great capacity to attract foreign investment, due to its credibility built on strong regulatory foundations and on best practices in corporate governance.

In this manner, BM&FBOVESPA believes that with the government measure to exempt the IOF tax on operations by foreign investors, there will be an even more favorable picture for the more than 40 companies that are waiting for the right moment for their share offerings to raise the resources they need for their investments and growth in 2012.

Source: BM&FBOVESPA, 2.12.2011

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

Follow

Get every new post delivered to your Inbox.