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

November 29, 2010 • 7:28 pm 2

Inmobiliaria Carso, de Carlos Slim, adquiere acciones ordinarias de BlackRock

Ciudad de México, 29 de noviembre de 2010 – Inmobiliaria Carso del señor Carlos Slim Helú, y BlackRock, Inc. (NYSE: BLK) confirmaron que la primera ha adquirido una posición en acciones ordinarias de la compañía durante la reciente oferta secundaria de acciones.

Como se anunció previamente, BlackRock, Inc. completó el 15 de noviembre de 2010 una oferta secundaria por 58’737,122 acciones de su capital ordinario a un precio de 163.00 dólares por acción.

“Estamos orgullosos de la afiliación del señor Slim como accionista de BlackRock y hemos acordado impulsar nuestra relación en beneficio mutuo”, comentó Laurence D. Fink, Chairman y CEO de BlackRock. “Las perspectivas de negocio del señor Slim, y su conocimiento de los mercados latinoamericanos tendrán un valor importante para continuar el desarrollo de BlackRock en esta región.”

BlackRock está comprometido con el desarrollo e innovación del sector financiero mexicano, en donde ha estado presente en el mercado de capitales desde 2004 a través de los ETFs iShares. Los ETFs, o Exchange Traded Funds por sus siglas en inglés, son también conocidos en México como “Trackers” o TRACs (Títulos Referenciados a Activos). Los ETFs son canastas de clases de activos estandarizadas que siguen a un índice. El compromiso de BlackRock en México se traduce en el desarrollo de 12 ETFs locales de renta variable y de deuda mexicana listados en la Bolsa Mexicana de Valores y en 150 ETFs listados en el Sistema Internacional de Cotizaciones de la BMV. BlackRock también cuenta con un fuerte equipo local de profesionales abocados a impulsar la cultura financiera en el país.

El Sr. Carlos Slim afirmó: “El equipo de gestión global de BlackRock y el posicionamiento estratégico de su modelo de negocio lo hacen una inversión atractiva. Espero una comunicación frecuente con BlackRock a medida que trabajemos juntos y podamos explorar nuevas oportunidades.”

Al 30 de septiembre de 2010, BlackRock administraba aproximadamente 15 mil millones de dólares en activos para clientes en México a través de los ETFs iShares, cuentas segregadas e institucionales. El total de activos gestionados globalmente por BlackRock asciende a 3.45 trillones (millones de millones) de dólares.

Con los ETFs iShares de BlackRock, los inversionistas mexicanos tuvieron por primera vez en 2004 acceso desde México a una amplia gama de vehículos de inversión con exposición a diferentes clases de activos internacionales, que les han permitido conformar portafolios mejor diversificados para lograr mejores rendimientos ajustados por riesgo.

BlackRock está firmemente comprometido a poner al alcance de los inversionistas mexicanos la familia más completa y diversificada de vehículos de inversión para tener acceso a todas las clases de activos disponibles a escala global. Y a su vez, ofrece acceso a inversionistas internacionales a instrumentos de activos mexicanos que contribuyen al financiamiento y desarrollo de México.

Source:BlackRock/Carral Sierra, 29.11.2010

Filed under: BMV - Mexico, Latin America, Mexico, News, Services, Wealth Management, , , , , , , , ,

November 24, 2010 • 9:59 pm 1

Metabit launches simulator for new Osaka Stock Exchange

As the industry eagerly awaits the launch of the Osaka Stock Exchange on 14 February 2011, Metabit has been authorised and licensed by NASDAQ OMX to build an exchange simulator against their OMNetAPI.  Metabit has leveraged its extensive experience of exchange simulation to launch Exsim for J-GATE on the 2nd of December, enabling sell side organisations to comprehensively simulate the new exchange’s APIs, prior to the exchange going live.

Daniel Burgin, CEO of Metabit, commented:

“We are delighted to be the first software vendor to launch an exchange simulator for J-GATE.  Companies will need to thoroughly test out different transaction scenarios before J-GATE goes live and after, when Exsim becomes an integral part of a broker’s internal testing facilities.  Exsim for J-GATE will enable them to do so realistically and effectively as well as supporting the onboarding process for the broker members’ institutional buyside clients on an ongoing basis.”

Exsim for J-GATE is independent of geographical location and time zones.  Organisations using Exsim can simulate the behaviour new J-GATE API for order execution as if were up and running now.

Metabit is headquartered in Japan, with offices in Australia, Hong Kong and Mainland China.  For further information about how Exsim for J-GATE could help your organisation, please contact Kenichi Morita on +81-3-3664-4160, mail sales@meta-bit.com or see http://www.meta-bit.com.

Source: Metabit, 24.11.2010

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

November 23, 2010 • 5:04 am 0

The Currency Investor Magazin Autum 2010

The Autumn 2010 edition of Currency Investor magazine is now available. You can view a complimentary digital version at this link:


Currency Investor Autumn 2010

This exciting new quarterly magazine is designed to help global Retail and Institutional investors discover ways to leverage currencies  as a tactical asset class for their risk management and direct investment and trading requirements.

The next edition is planned for publication in Q1 2011.

Source: Currency Investor 23.11.2010

Filed under: Asia, Latin America, News, Services, , , , , , , , ,

November 23, 2010 • 4:56 am 5

Brazil: BM&FBOVESPA Monthly News October 2010

Complete Version

 ETF financial volume grows in October
The financial volume registered in October by the seven BM&FBOVESPA Exchange-Traded Funds (ETFs) reached BRL 654.85 million, in contrast to BRL 646 million in September.
BM&BOVESPA 2010 third quarter earnings
Net revenues of BRL 486.9 million increased 27.1% year-over-year and EBITDA of BRL 336.4 million climbed 28.4% year-over-year, whereas EBITDA margin remained at 69.1%.
Important records set on BM&FBOVESPA in October
There were important BM&FBOVESPA records in October in terms of total financial volume, average daily volume and number of trades. There were also records in securities lending and live cattle markets.
Unprecedented studies into the Brazilian carbon market
The studies contain consolidated and contextualized information, which should contribute towards developing Brazil’s carbon market.
Public and private sectors discuss climate change in São Paulo seminar
Seminar seeks development of the carbon credit market and of other financial mechanisms that can help reduce the impact of climate change.
Latest BM&FBOVESPA IPOs
On October 25 and November 1 respectively, Brasil Insurance Participações e Administração S.A. and HRT Petroleo joined BM&FBOVESPA’s Novo Mercado
Five years of the ISE Corporate Sustainability Index
BM&FBOVESPA is promoting an international seminar to celebrate the 5th anniversary of its ISE Corporate Sustainability Index.
Volumes and trades by Direct Market Access (DMA) – BM&F Segment (Derivatives)
In October, BM&F Bovespa market segment transactions carried out through order routing via Direct Market Access (DMA) registered 17,469,654 contracts traded and 2,355,643 trades.
Volumes and trades by Direct Market Access (DMA) – BOVESPA Segment (Equities)
BOVESPA market segment transactions carried out through order routing via Direct Market Access (DMA) registered a financial volume of BRL 106,316,674,000.00 and 9,853,783 trades.
MARKET RESULTS – BM&F Segment October 2010
In October the derivatives market segment totaled 42,754,273 contracts and BRL 2.97 trillion in financial volume.
MARKET RESULTS – BOVESPA Segment October 2010
In October the equity markets segment traded a record BRL 154.5 billion in 10,220,821 trades, with daily averages of a record BRL 7.77 billion and a record 511,041 trades.

Filed under: BM&FBOVESPA, Brazil, Energy & Environment, Exchanges, Latin America, News, Trading Technology, , , , , , , , , , ,

November 22, 2010 • 6:34 am 2

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

November 12, 2010 • 10:41 pm 1

LatAm Real Estate Report 2010 – Alternative Latin Investor

Alternative Latin Investor is proud to present our latest special report, LatAm Real Estate: 2010.

We cover the commercial, residential and tourism sectors within Brazil, Mexico, Colombia and Peru with special sections on Agricultural Land Investment in Argentina and the massive Panama Pacifico Project.

Please register for the free the report at http://www.alternativelatininvestor.com/registration.html

We appreciate any comments or suggestions for future reports you may have, please email us at info@alternativelatininvestor.com

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

November 12, 2010 • 1:38 am 3

Shenzhen Financial Services and Fund Management Study and Network Tour 3-4 December 2010

Gain deeper knowledge of Shenzhen, China Financial Industry

The study tour is coordinated with the local Shenzhen government support to view the latest mega-development in Shenzhen that would be of interest to business people and visitors alike. Participants will get an orientation of Shenzhen and gain a clear perspective of the importance of Shenzhen in the master plan of the centrally planned economy of China.

Benefits of the Study Tour:

  • Gain first-hand exposure to the current growth climate in Shenzhen
  • Gain an insight into the vibrant economic sectors in Shenzhen
  • Explore ways to capitalize on various initiatives and activities undertaken within Shenzhen
  • Meet and exchange views with the industry’s experts on various challenges and prospects in investing in Shenzhen
  • Create networking and business match-making opportunities among senior executives and those interested in business and investment.
picture Shenzhen today is the leading manufacturing hub of China and the master plan from the Central government which was announced recently is to keep Shenzhen growing for the next 30 years with the building of the “Manhattan” of China at Qianhai, Shenzhen. 

Does this news catch your eye?

Sept. 3 (Bloomberg) — The southern Chinese city of Shenzhen plans to invest 40 billion yuan ($5.88 billion) in its Qianhai area to make it the “Manhattan” of the Pearl River Delta, the Securities Times reported today, citing the local government. The investment in the 15 square kilometer area of the city will be made over the next three years, the Shenzhen-based newspaper reported. The government is looking at the possibility of offering a low tax regime similar to Hong Kong’s and of allowing free convertibility of the yuan in the area, according to the report.

ATIC@Shenzhen 2010 will bring together a group of international participants consisting of fund managers, private equity investors, high-net-worth investors, directors of securities brokerage firms as well as senior executives of global stock exchanges to Shenzhen for an in-depth look at the Shenzhen capital market, as well as to network with Shenzhen government officials, fund managers, securities brokerage firms and listed company CEO’s and companies looking to expand overseas This platform provides a timely and strategic platform to convene investors to discuss strategies, leverage opportunities and explore potential cross-borders business partnerships. Participants will be able to network, mingle and make fruitful contacts to improve their business bottomless.

WHO SHOULD ATTEND?

This is a strategic, informative and concise program designed for Investors, Business Owners, Senior representatives or professionals with Financial Services Organizations such as Fund Management Houses, Securities Brokerage Firms, Securities Exchanges and other finance-related institutions.

Don’t get left behind. Come join us and take this incredible opportunity and advantage to reach your top prospects and grow your business.

Shenzhen Study Tour & Investment Summit Package Price *Early Bird Individual Group (Min 2 persons)
USD750 USD1,000 USD800

*Limited period only.

Package price includes of one study tour luncheon and one exclusive networking and dinner on 3 December 2010. Participation is on a first-come-first-serve basis and interested delegates are encouraged to submit an early registration in order to avoid disappointment.

Register Now!

For more information, please visit http://www.theatic.net/ or contact us at:

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

November 9, 2010 • 3:25 am 0

Mexico: Economy Continues Slowly to Our Targets – November 2010- IXE BANIF – Monthly Analysis

Mexican growth motors continue to balance out

Since last month, we have experienced a re-balancing of growth drivers, with improvement of local demand and a slow-down in exports, the main growth motor. Exports have reduced their YoY growth rate from the nearly 50% of the beginning of the year, although it remained at a high 21% in September. We expect this deceleration to continue until 2011.

Mexico – Monthly Allocation – November 2010

During October, we renewed our good expectations for growth of the Mexican economy with the release of statistics for September: a) Internal retail sales increased 4% YoY; b) consumer confidence grew 12% YoY; c) 780k new jobs created in the first nine months. Concerning job creation, this level was a record high for the same period and mainly due to the export industry. We maintain our expectation for the creation of 650k new jobs in 2010 (seasonally, there is job reduction at year-end) and 530k in 2011.

Despite these changes in export and local demand, we maintain our expectation of a 4.4% GDP growth for 2010 (while market consensus remain at 5%) and 3.7% for 2011. For our 2011 forecast, local demand still has to catch up, as we predict a further decline in exports.

For our November portfolio, we have added Femsa and increased the weight of Grupo Mexico from 15 to 20%. We have reduced the weight of Mexchem from 15 to 10% and withdrawn Soriana.

Mexican tidbits

Inflation remains under control, although the first data collected for October, indicating a 0.5% increase, was slightly above our and market expectations. We continue expecting 4.5% for 2010, with the belief that interest rates increase no earlier than October 2011, although the growth of inflation in the recent past may allow postponement to the beginning of 2012.

The Mexican Peso reduced its volatility in October, appreciating from the 12.6 P$/US$ at the beginning of the month. Our forecast is currently at 12.4 for the end of 2010 and 12.2 for the end of 2011.

Source: Banif – IXE, 05.11.2010

Filed under: BMV - Mexico, Latin America, Mexico, News, Services, , , , , , , , ,

November 9, 2010 • 1:57 am 0

Charles River Development Wins Buy-Side Technology’s “Best Buy-Side OMS” Award for 4th Consecutive Year

Single, consolidated platform streamlines workflows and lowers costs and risks for buy-side firms

Charles River Development (Charles River), a front- and middle-office investment software solutions provider, today announced that the Charles River Investment Management System (Charles River IMS) has won the Buy-Side Technology Award for “Best Buy-Side Order Management System” for the fourth consecutive year.

“Once again, this award validates Charles River’s commitment to empower portfolio managers, traders and compliance officers with advanced tools that improve efficiencies and reduce risk and costs,” said Peter Lambertus, President and Chief Executive Officer, Charles River Development. “Our continued investment in research and development delivers flexible, scalable solutions to support requirements of both large and small firms.”

Judges for the Buy-Side Technology Awards 2010 included leading buy-side-focused technology consultancy firms. These experts selected Charles River IMS as a multi-asset, multi-currency solution for automated decision support and portfolio management, real-time pre- and post-trade compliance and global FIX trading.

The Buy-Side Technology award follows Charles River’s recent recognition for “Best Buy-Side Technology Firm” by Asia Asset Management Best of the Best Awards and the “FinTech Top 100,” American Banker/Financial Insights 2010.

Source: Charles River Development, 08.11.2010

Filed under: Asia, Brazil, FIX Connectivity, Latin America, Mexico, Risk Management, Trading Technology, , , , , , , , , , , , , , ,

November 9, 2010 • 1:50 am 0

Brazil: Full and Inconclusive Agenda – November 2010- IXE BANIF – Monthly Analysis

Invisible hand might move the US market

For November, we expect no relevant data coming from the economic indicators in Europe or in the US. One of the main drivers of the month, however, should come from the FED in its meeting on the 2nd and 3rd. We expect immediate action announced in the form of purchases of securities in the financial market, irrigating it by around US$500bn in six months. Last month, deflation was the biggest fear but since then, rumors of FED actions have turned these fears into expectation of inflation. The first practical signs of this change happened at the end of October, when the Treasury sold US$10bn of 5-yr Treasury Inflation Protected Securities (TIPS) with negative yield, indicating that investors are already betting on increasing inflation. The full effects of a government-induced inflation are uncertain, but we believe that the initial sentiment on such an announcement would be positive.

Mixed drivers for Brazil

We believe investors will closely monitor six main factors in November that should affect the local market: 1) The performance of foreign markets; 2) the end of the bad feeling on Petrobras’ capital increase; 3) the end of the elections; 4) companies 3Q earnings; 5) the stability of Brazil’s FX and 6) the domestic economy. The first three items are likely to be positive. Items 4 and 5 can be mixed and bring volatility and item 6 is likely to be seen negatively. Given these mixed drivers, we foresee the same scenario we projected for October: the market moving sideways with volatility.

We have heavily changed our suggested portfolio again, as we did last month, with the inclusion of Petrobras and Lojas Renner (with weights of 20% and 5%, respectively). We have reduced weights on Guararapes, Telesp and Tractebel (both from 10% to 5%) and have withdrawn Itaú and OGX.

Brazilian Economic Indicators Published in November Weaker

We see the end of elections as positive, as it will leave a great source of stress behind and, independent to the outcome, differences between the two candidates are likely to have practical effects only in the medium term. The most immediate potential stress that can arise after the elections result is likely the announcement of names in the top positions of the new government.

The appreciation of the Real since the Petrobras capital increase stressed the government and other economic agents until the government decided to increase IOF taxation sequentially, first from 2% to 4% and then to 6%. First indications show stability of the FX, but the government will certainly monitor to see if these measures were sufficient to reach long lasting stability. We foresee further action from the Government should the Real start to appreciate again.

In economic terms, we believe that Brazil’s November indicators, published in November, should be weaker than those published for a long stretch of months. The reason for this view is our expectation for three indicators: 1) retail sales; 2) industrial production and 3) activity index (Central Bank measure that indicates GDP performance and precedes its release). We foresee negative figures for the first two and nearly zero for the third.

Source: Banif-IXE, 01.11.2010

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

November 8, 2010 • 10:27 pm 0

VAM: Vietnam Market Analysis October 2010

Market Update - October macro indicators showed Vietnams real economic growth was still on track. Industrial production and retail sales in the first ten months grew by 13.7% and 25.1% on-year, respectively. In the same period, export turnover was also up 23.3% on-year whilst imports were only up 20.7%. With the third consecutive downward revision to September deficit number from US$1.05 billion to US$875 million (after revisions made to July and August numbers), year-to-date trade deficit is standing at US$9.5 billion versus the government full year target of US$13-14 billion, signaling that trade deficit seemed to have stabilised. VAM Monthly Newsletter – October ’10

However, inflation and exchange rate remained major issues of the economy. October inflation came out at 1.05% on-month and 7.58% year-to-date, showing no clear sign of slowing down despite the governments increasing effort in consumer price control after the sudden acceleration of inflation in September. Given the coming months usually experience high seasonal inflation, made worse by the recent floods in central provinces which are considered worst for the past 60 years, consensus estimates are looking at 9-10% inflation for this year, well above the government target of 8%.

Another headline during the month was the rising divergence between official and unofficial exchange rates. At month end, gold shops were selling the greenback for 20,160 dong/dollar, 3.4% higher than rates offered by commercial banks. The ongoing dollar price rise in the free market was mainly attributable to strong increase in demand for dollars from i) importers to pay for purchases made in preparation for high year-end consumption; ii) businesses to pay back dollar loans due at year end; iii) businesses to import gold to re-sell in Vietnam to make arbitrage profit due to the difference in domestic and world gold prices; and iv) individuals increasing dollar and gold hoarding. Of these causes, the last one is considered the most challenging to deal with as hoarding dollars and gold has been a deep-rooted habit of storing assets by Vietnamese people, which always tend to intensify amidst a high inflation and volatile exchange rate scenario.

In an attempt to take downward pressure off the dong, on 29 October, the State Bank of Vietnam (SBV) issued Circular 22 that banned banks from selling gold deposited by customers and using the funds for loans or for converting into foreign currencies. However, the SBV was being expected to have stronger actions to regain peoples confidence in the dong. Some possible measures being mentioned offline included either a further devaluation of the dong toward year end, which was not in favor of policy makers, or the SBV injecting dollars into the market using the foreign reserves; removing cap on interest rates in dong term; etc. Taking all these factors into consideration, we would expect a tightening monetary policy from the government and the SBV in the coming months.

The VN-Index reacted against all these news with another month of sideways movement, ending October at 452.63, down just 0.4%.

Our View – We believe that the market is at a low point but will continue to go sideways in the short-term due to uncertainties over inflation and currency devaluation. 3Q2010 corporate earnings generally did not provide adequate support to the market and liquidity on both bourses has been quite low recently. We think investors are waiting for a clear signal of economic health improvement before pumping back money into the market. Despite the currently rather bearish sentiment, we note that the hot money flow from overseas is ready to come back to Vietnam any time as long as the market starts picking up.

Our list of favorite sectors for long-term investment still consists of consumers, IT-Telecom, fertilizer and pharmaceuticals. For short-tem trading plays, we maintain watch on certain stocks in commodities such as sugar, natural rubber and rice as well as some high-dividend yield stocks. Overall, we uphold our bottom-up approach and keep a close watch on the business performance of sound-fundamental firms as we think these stocks will be the first to recover once the macro economic picture stabilises.
Source: VAM, 08.11.2010

Filed under: News, Vietnam, , , , , , , ,

November 5, 2010 • 1:39 am 23

Brazil: BM&FBOVESPA October 2010 Market Performance

  • Bovespa sets new records for total financial volume, average daily volume and number of trades
  • Securities lending reached a BRL 44.88bn record
  • Live cattle market reached a record of 228,082 contracts traded

Bovespa Segment

In October 2010, equity markets (Bovespa segment) traded a record BRL 154.5 billion, in 10,220,821 trades, with daily averages of a record BRL 7.77 billion and a record 511,041 trades, in comparison to September when total volume reached BRL 140.9 billion, in 9,398,749 trades, with daily averages of BRL 6.71 billion and 447,559 trades.

Equities

The most traded stocks in October were: Petrobras PN, with BRL 18.79 billion; Vale PNA with BRL 15.97 billion; OGX Petróleo ON, with BRL 6.6 billion; Petrobras ON, with BRL 5.2 billion; and BM&FBOVESPA, with BRL 4.7 billion.

Indexes

The Ibovespa ended October at 70,673 points, up 1.79% from the previous month.

The best performing stocks were: Lojas Americanas PN (+10.31%); Lojas Renner ON (+15.88%); Ambev PN (+15.33%); Pão de Açúcar PNA (+14.14%); and Gol PN (+13.10%). The worst performing stocks were: Redecard ON (-16.19%); Marfrig ON (-10.79%); JBS ON (-10.53%); Petrobras ON (-6.09%); and Usiminas PNA (-5.40%).

All of the other Bovespa segment stock-exchange indexes ended October as follows: IBrX-50 (+1.28% at 9,643 points); IBrX-100 (+1.67% at 22,218 points); ISE (+2.38% at 2,070 points); Itel (+5.77% at 1,442 points); IEE (+3.82% at 26,473 points); INDX (+3.04% at 10,945 points); IVBX-2 (+3.23% at 6,146 points); IGC (+3.46% at 7,714 points); Itag (+3.28% at 10,025 points); Small Cap (+6.35% at 1,426 points); MidLarge Cap (+1.63% at 977 points); Iconsumo (+6.57% at 1,645 points); Imobiliário (+5.74% at 1,091 points); and Ifinanceiro (+2.32% at 3,888 points).

Market Value

Market capitalization of the 379 companies listed on the BM&FBOVESPA in October was BRL 2.55 trillion, compared to BRL 2.48 trillion for the 377 companies listed in September.

Special Corporate Governance Levels

At the end of October, the 163 companies that are part of the BM&FBOVESPA’s special corporate governance levels represented 66.86% of the market capitalization, 73.63% of the financial volume, and 78.44% of the trades in the spot market. At the end of September, there were 162 companies, representing 66.02% of the market capitalization, 71.31% of the financial volume, and 78.61% of the spot market trades.

Market Participation

The spot market accounted for 94.1% of total trading volume in October, followed by the options market, with 4%, and by the forward market, with 1.9%. The after-market traded BRL 1.2 billion with 69,794 trades, compared to BRL 1.1 billion and 75,658 trades in the previous month.

Investor Participation

In October, foreign investors were responsible for 32.88% of the total volume, compared to 30.85% in September. Institutional investors came next, with 32.49%, compared to 35.45%; individual investors had 22.52%, compared to 24.25%; financial institutions, with 8.92%, compared to 7.08%; companies, with 3.08%, compared to 2.31%; and other types of investors with 0.10%, compared to 0.06%.

Foreign Investment

The net flow of foreign investment into the Brazilian stock market in 2010 as of October 31 reached BRL 42,608,216,442.55, which is the combined result of the amount of BRL 37,911,665,001.6 in acquisitions carried out by foreign investors in stock offerings (including BRL 20.21 billion registered in Brazil) and the positive balance of BRL 4,696,551.441.0 in direct trading at BM&FBOVESPA.

In October, the financial volume traded by foreign investors in the stock market was a positive BRL 1,595,230,798.0, which is the net balance between stock sales of BRL 50,220,452,013.0 and stock purchases of BRL 51,815,682,811.0.

The foreign investor participation in stock offerings, including IPOs, represented 26.0% of the total BRL 145,790,463,129.3 in transactions related to the publication of the closing announcement dates ending on November 3rd, 2010, pursuant to information available on the Exchange’s website, under the media section.

Investment Clubs

BM&FBOVESPA ended October with 3,084 investment clubs and 33 new registrations. Total liquid assets reached BRL 11.29 billion and the number of participants reached 135,347, according to the latest available data for September.

Individual Investors

BM&FBOVESPA ended October with 615,694 individual investor stock exchange accounts in custody, compared to 630,895 accounts in September.

Home Broker

Average daily trading via Home Broker hit 213,792 trades in October, compared to 199,523 in September. The total number of trades reached 4,275,836, compared to 4,189,981 in the previous month. The volume in Home Broker trades totaled BRL 36.83 billion, compared to BRL 36.13 billion in September. Home Broker’s participation in the stock market’s total volume in October was 20.92%, compared to 22.29% in September. In October, the number of brokerage firms offering Home Broker remained unchanged at 64.

Securities Lending

In October, the total number of securities lending transactions reached 79,348, with a record financial volume of BRL 44.88 billion, compared to 81,301 transactions and BRL 44.21 billion in September.

Fixed Income

In October, the trading volume for the secondary market, counting both the Bovespa Fix and the Soma Fix, totaled BRL 16.53 million, compared to BRL 38.84 million in September. Of this total, debentures accounted for BRL 8.26 million and Mortgage Backed Securities (CRI) accounted for BRL 8.28 million.

ETFs

The financial volume registered in October by the seven BM&FBOVESPA Exchange-Traded Funds (ETFs) reached BRL 654.85 million, in contrast to BRL 646 million in September. The ETFs BRAX11, CSMO11, MOBI11, BOVA11, SMAL11, MILA11 and PIBB11 registered 17,920 trades. In the previous month, the number of trades was 23,391. In October the ETF with the highest financial volume was BOVA11 with BRL 558.24 million, in comparison to its total financial volume of BRL 551.45 in September.

BM&F Segment

Derivatives markets in the BM&F segment (including financial and commodities derivatives) totaled 42,754,273 contracts and BRL 2.97 trillion in volume in October, compared to 41,566,908 contracts and BRL 2.72 trillion in September. The daily average of contracts traded in the derivatives markets in October was 2,137,714 contracts, in contrast to 1,979,377 in September. Open interest contracts ended the last trading day of October with 38,018,126 positions, compared to 42,433,285 in September.

Financial Derivatives

In October, interest rate futures (ID) traded 17,014,100 contracts, in contrast to 18,639,700 in September. The US dollar futures ended the month of October with 6,975,505 contracts, compared to 6,135,310 in the previous month. The Ibovespa futures traded 1,567,505 contracts, compared to 1,483,160 in September. The Euro futures contract (EUR) registered 30,510 contracts, in contrast to 31,745 contracts in September.

Agribusiness Derivatives

In October, the BM&FBOVESPA agribusiness derivatives market (including futures and options) totaled 353,731 contracts traded, compared to 300,356 in September. Agribusiness markets totaled 142,252 open interest contracts, in contrast to 174,265 in the previous month.

Live cattle futures and options totaled a record 228,082 contracts traded in October, compared to 155,460 in September. Arabica coffee ended October with 59,106 contracts, compared to 53,743 in September. Soybeans totaled 15,704 contracts, compared to 16,929 in September, and cash-settled corn futures and options totaled 46,831 contracts traded, compared to 70,672 in September. Hydrous ethanol futures totaled 4,008 contracts, compared to 3,552 in September.

Mini Contracts

The derivatives market for mini contracts traded 2,001,831 contracts in October, compared to 1,726,290 in September. Of this total, the futures market for Ibovespa mini contracts traded 1,770,782, compared to 1,561,825 contracts in the previous month. Mini U.S. dollar futures traded 229,236 contracts, compared to 163,382 in September. Mini futures contracts ended October with 21,187 open interest contracts, compared to 28,104 in the previous month

Spot Gold

The spot gold market (250 grams) traded, in October, 1,362 contracts, compared to 526 contracts in September. Spot gold market volume totaled BRL 25.94 million, compared to BRL 9.58 million in the previous month.

Investor Participation

In October, financial institutions led derivatives trading (BM&F segment), accounting for 40.46% of contracts traded, compared to 43.85% in the previous month. Institutional investors were responsible for 31.29%, compared to 28.20%; foreign investors for 22.12%, compared to 21.77%; individuals for 4.40%, compared to 4.39%; and companies for 1.74%, versus 1.79%.

Individual Investors

In October, there were 130,530 individual investors with at least one account registered at the Derivatives Clearinghouse, compared to 125,710 during the previous month.

Volumes and trades by Direct Market Access (DMA)

BM&F Segment

In October, BM&F* market segment transactions carried out through order routing via Direct Market Access (DMA) registered 17,469,654 contracts traded and 2,355,643 trades. In September, the volume reached 14,735,086 contracts traded and 2,042,499 trades.

The volumes registered by each access modality in the BM&F segment were as follows:

  • Traditional DMA – 6,994,936 contracts traded, in 737,728 trades, in comparison to 6,099,415 contracts and 650,321 trades in September;
  • Via DMA provider (including orders routed via the Globex System) – 6,411,890 contracts traded, in 355,115 trades, compared to 5,231,302 contracts and 328,060 trades in September;
  • DMA via co-location – 4,062,828 contracts traded, in 1,262,800 trades, compared to 3,404,369 contracts and 1,064,118 trades in September.In October, transactions carried out by foreign investors presented by CME to BVMF (who use the Globex-GTS order routing system or access BVMF markets via co-location) totaled 2,809,924 contracts traded, in 818,390 trades, compared to 3,324,575 contracts and 872,753 trades in September.

Bovespa Segment

In October, BOVESPA* market segment transactions carried out through order routing via Direct Market Access (DMA) registered a financial volume of BRL 106,316,674,000.00 and 9,853,783 trades.

Trading volumes per type of DMA in the Bovespa segment:

Traditional DMA – Volume of BRL 105,948,731,000.00 and 9,811,686 trades;
DMA via co-location – Volume of BRL 367,943,000.00 and 42,097 trades.

Source: MondoVisione, 05.11.2010

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

November 4, 2010 • 2:04 am 1

Argentina to have its first Gold Futures Contract – on November 8, the New Gold Futures and Options Contract will begin trading In ROFEX.

As from November 8, gold futures and options will be traded for the first time in Argentina. This new hedging tool, approved by the National Securities Commission (CNV), will be listed next week and will be part of ROFEX´s Financial Derivatives Division (DDF). “The launching of the gold contract sprang from an initiative of Banco Ciudad, the main participant of the local gold market, which will also act as the product’s Market Maker, allowing traders to find a liquid market”, stated Luis Ossola, ROFEX´s president.

Taking as a reference the most important markets in the world, ROFEX will be the first local derivatives market to offer gold futures contracts, whose reduced size as compared to international contracts will offer the retail investor the possibility to participate. It will be quoted in US dollars per troy ounce (31.103 grams), in line with international trading.

Thus, this contract aims at providing smaller investors with an alternative of price coverage for domestic assets related to the metal.

“With this new contract’s trading, ROFEX will try to expand the local financial market, providing an innovative tool that generates trading records worldwide. According to estimates by the Futures Industry Association (FIA), five of the twenty most traded metal derivatives in 2009 were on gold”, emphasized Diego Fernández, ROFEX´s general manager.

Source: Mondovisione, 04.11.2010

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

November 3, 2010 • 2:31 am 0

Fidessa publishes White Paper on Development of Trading Technology for Latin America – Discusses Technology’s Role in Driving Trade Volume to the Region ­­­

Fidessa group plc the leading provider of trading systems, market data and connectivity to buy-sides and sell-sides globally, has today announced the publication of a new white paper on the increasingly critical role that technology plays in reinforcing wholesale markets and attracting foreign investors to Latin America. The paper, entitled The Development of Trading Technology for Latin America, stresses that as the pool of brokers becomes broader and deeper, more sophisticated technology will be required to compete.

Along with increasing political stability in LATAM, higher levels of consumer affluence and international interest in the potential value in its natural resources have secured LATAM’s emergence into the mature market trading world. Although the LATAM markets have their own particular features, specific regulatory issues and cultural practices, the implementation of technology used will almost certainly follow the same trajectories seen in the more mature markets of North America, Europe and Asia. This paper provides its readers with valuable insight into the future of this region’s forthcoming trading market as forecasted by Alice Botis, Head of Business Development for Latin America, Fidessa.

Botis says of LATAM: “An expanding middle class with attendant pension funds combined with a positive population growth trajectory, has encouraged the establishment of an investment management community and the consequent growth in both buy-side and sell-side institutions. From 2000 to 2010, for example, access to financial services in Mexico increased from 25 to 59 percent, according to a survey conducted by the Ministry of Finance and Public Credit (SHCP).”

She points out that the political and economic structures of the LATAM region are now considered stable and safe, as are their capital markets. The Development of Trading Technology for Latin America reinforces Fidessa’s contention that systems for resilient order management—which can handle inbound/outbound international order routing, target and hit appropriate liquidity, offer comprehensive algos and basket functionality upstream of the EMS, and aid compliance—will continue to penetrate further into the marketplace.

Botis adds: “Vendors are now extending functionality to meet regional market requirements, incorporating local market data into their trading platforms, building local market gateways and providing tools enjoyed by counterparts in other regions. Experienced technology providers are working with firms in LATAM to develop systems to meet their needs, to facilitate electronic trading, and to ensure that technology plays its part in the development of capital markets. Costly and time-consuming in-house development of proprietary systems is no longer necessary.”

The paper asserts that the question is no longer whether a firm should invest in technology but whether it can afford not to. The Development of Trading Technology for Latin America will also be available through the Fidessa website, www.fidessa.com, or by contacting us.info@fidessa.com.

Source: Mondo Visione, 03.11.2010

Filed under: Argentina, Brazil, Chile, FIX Connectivity, Latin America, Mexico, Trading Technology, , , , , , , ,

November 3, 2010 • 2:28 am 2

Nomura builds Latin American Foreign Exchange Sales and Trading Business

Nomura, the global investment bank, has expanded its Latin American Foreign Exchange coverage under the leadership of David Steck, Managing Director, Nomura Securities International, and newly-appointed Global Head of FX Sales. Liran Blum has been appointed Head of FX and Local Markets Americas Trading and Aloisio Teles has been appointed Head of FX LatAm Trading.

In his newly created position, David Steck will define and implement a global client strategy in FX and strengthen the firm’s global footprint. In the last 13 months Steck and his regional and global partners have launched Nomura’s FX Americas operations, which now employ more than 50 front office staff providing full G10 and Emerging Markets capabilities to a growing client base. Prior to joining Nomura, Steck spent 11 years at Deutsche Bank. Steck reports locally to Peter Hornick, Head of Fixed Income Sales Americas, and globally to Richard Gladwin, Global Head of Foreign Exchange and Commodities.

To build upon Nomura’s success to date in growing the Americas platform, Blum has been appointed Head of FX and Local Markets Americas Trading. Prior to joining Nomura in June 2009, Blum worked for SAC Capital Advisors as a portfolio manager and Lehman Brothers. Blum reports locally to Charlie Spero and Jeff Michaels, Joint Heads of Fixed Income and globally to Richard Gladwin.

To ensure continued progress in building Nomura’s Latin American business, Teles has been appointed Head of FX LatAm Trading. Prior to joining the firm in June 2009, Teles worked for SAC Capital Advisors as a portfolio manager focused on emerging markets. His prior experience also included working at Lehman Brothers and Banco Bozano Simonsen in Rio de Janeiro where he traded LatAm local market instruments. Teles’s extensive LatAm market knowledge, relationships and trading capabilities make him uniquely qualified to lead the effort in expanding Nomura’s local markets trading business.

Nomura now has an 8 person team trading Latin American Foreign Exchange focused on Brazil, Mexico and the Andean countries, supported by 4 salespeople and a 4 person strategy team lead by Tony Volpon, Nomura’s Brazil strategist. Nomura has an extensive Latin American product suite covering the currencies of Brazil, Mexico, Colombia, Chile and Peru. Its products include spot, forward and non-deliverable forwards, vanilla and exotic options, cross currency and interest rate swaps, Brazil on-shore futures, Brazil and Mexico sovereign bonds and structured products.

Source: Mondo Visione, 03.11.2011

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

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