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

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

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

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

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

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

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

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

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

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

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

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

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

DATE

ISSUER

AMOUNT

(MXN)

24/07/2013

FIBRA SHOP

5,466’319,197.50

27/07/2013

BANORTE

27,814’854,210.00

10/07/2013

GRUPO AEROPORTUARIO DEL CENTRO NORTE (OMA)

2,760’000,000.00

26/06/2013

CORPORACIÓN INMOBILIARIA VESTA

2,865’997,372.50

26/06/2013

GRUPO FINANCIERO INBURSA

12,548’681,522.00

21/06/2013

OHL MEXICO

6,993’508,369.00

14/06/2013

HOTELES CITY EXPRESS

2,915’603,088.00

03/06/2013

DESARROLLADORA Y OPERADORA DE INFRAESTRUCTURA HOSPITALA-RIA DE IXTAPALUCA

1,845’000,000.00

03/06/2013

SERVICIOS INTEGRADOS DE PASAJE Y TURISMO

3,500’000,000.00

31/05/2013

FIBRA HOTELERA MEXICANA

4,877’725,000.00

22/03/2013

INFRAESTRUCTURA ENERGETICA NOVA

7,415’757,000.00

20/03/2013

PLA ADMINISTRADORA INDUSTRIAL (FIBRA TERRA)

9,521’540,000.00

13/03/2013

FIBRA INN

4,460’457,244.50

13/03/2013

GRUPO DINIZ

250’000,000.00

26/02/2013

GRUPO CIOSA

150’000,000.00

31/01/2013

ORGANIZACION CULTIBA

3,944’696,770.00

30/01/2013

FIBRA UNO

22,050’000,000.00

(Judith Santiago / Mexican Business Web)

Related posts:

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

Mexico: Fibras acaparan la colocación bursátil MBV

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

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

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

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

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

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

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

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

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

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

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

EMISIONES BMV 2013  DEL 30 DE ENERO AL 24 DE JULIO

FECHA

EMISOR

MONTO

(*MDP)

24/07/2013

FIBRA SHOP

5,466’319,197.50

27/07/2013

BANORTE

27,814’854,210.00

10/07/2013

GRUPO AEROPORTUARIO DEL CENTRO NORTE (OMA)

2,760’000,000.00

26/06/2013

CORPORACIÓN INMOBILIARIA VESTA

2,865’997,372.50

26/06/2013

GRUPO FINANCIERO INBURSA

12,548’681,522.00

21/06/2013

OHL MEXICO

6,993’508,369.00

14/06/2013

HOTELES CITY EXPRESS

2,915’603,088.00

03/06/2013

DESARROLLADORA Y OPERADORA DE INFRAESTRUCTURA HOSPITALA-RIA DE IXTAPALUCA

1,845’000,000.00

03/06/2013

SERVICIOS INTEGRADOS DE PASAJE Y TURISMO

3,500’000,000.00

31/05/2013

FIBRA HOTELERA MEXICANA

4,877’725,000.00

22/03/2013

INFRAESTRUCTURA ENERGETICA NOVA

7,415’757,000.00

20/03/2013

PLA ADMINISTRADORA INDUSTRIAL (FIBRA TERRA)

9,521’540,000.00

13/03/2013

FIBRA INN

4,460’457,244.50

13/03/2013

GRUPO DINIZ

250’000,000.00

26/02/2013

GRUPO CIOSA

150’000,000.00

31/01/2013

ORGANIZACION CULTIBA

3,944’696,770.00

30/01/2013

FIBRA UNO

22,050’000,000.00

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

 Artículos relacionados

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

Source: MexicanBusinessWeb, 19.08.2013

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

ITG launches Posit Alert for Mexican equities

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

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

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

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

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

Source: Finextra 30.07.2013

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

Mexico Investment News Letter 07 June 2013

Mexico Is The Next China

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

Mexico and the cursed Dragon Mart

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

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

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

What does Xi see in Mexico?

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

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

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

Grupo Gigante buys rest of Office Depot’s Mexican arm

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

Heineken-Modelo Beer Probe Nears Mexico Agency Decision

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

Pemex Mulls Bolsa Listing of Projects to Lower Funding Costs

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

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

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

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

More projects of passenger trains in Mexico

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

The Mexico Paradox

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

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

Mexico, The Emerging Latin American Powerhouse

TABB Forum:  For the past few years, coverage of Mexico in the U.S. media has largely been dominated by stories of violence stemming from the country’s drug cartels. Lately though, the media have increasingly been turning their attention to the story of Mexico’s booming economy, and new president Enrique Peña Nieto’s bold moves to radically reshape it. This robust growth in Mexico looks set to continue for some time, which has led the Financial Times to label Mexico as the “Aztec Tiger.”1

MexDer, the nation’s only futures exchange, has been taking steps to ensure that it grows apace with the nation’s economy by making substantial upgrades to its matching engine, while continuing to make it easier for foreign investors to access the market. As a result of these changes, as of yesterday, April 14, north-to-south routing to MexDer via CME Group’s Globex® platform is available on Trading Technologies. You can read the details in the news release that we published today and on  TradingTechnology website.

The Aztec Tiger 

A perfect storm of positive influences is coming together to make Mexico one of the world’s emerging economic powerhouses. Mexico has a young and growing population, low levels of government debt and low inflation. The country is developing into a leading exporter due in part to widespread implementation of new manufacturing processes, but also due to the fact that Mexico has free trade pacts with 44 countries—more than any other nation on earth.These forces have combined to make Mexico’s economy one of the few bright spots in a global economy still working off the hangover resulting from the credit bubble. Mexico’s economy grew at around four percent in 2012, quadruple the growth rate of Latin America’s largest economy, Brazil.2 The Mexican peso hit a 19-month high against the U.S. dollar in March, and has outpaced 16 other major world currencies over the last month.3

With its growth track record and favorable conditions for growth to continue, a Nomura Equity Research report in July 2012 predicted that Mexico would overtake Brazil to become the largest Latin American economy within the next decade.4 In addition, Standard & Poor’s and Fitch have indicated that in the near future, they are likely to upgrade Mexico’s debt, which is already investment grade.5

A Pact for Mexico, An Open Door for Growth

Much of the optimism for Mexico’s future can be traced back to its new president, Enrique Peña Nieto. He hails from the Institutional Revolutionary Party (PRI), which ruled Mexico uninterrupted for 71 years and was identified with corruption and inefficient bureaucracy. That being said, President Nieto is quickly making himself known as a risk taker, willing to take on fights in which none of his predecessors seemed willing to engage.

Within two days of his swearing-in last December, Nieto’s PRI signed a “Pact for Mexico”6 with the opposition National Action Party (PAN). This pact outlines 95 proposals to modernize and liberalize Mexico’s economy. Nieto began by taking on the richest man in the world, Carlos Slim, by announcing plans to foster competition in the telecommunication and television industries, which are currently dominated by monopolies. Later this year, Nieto is expected to propose his most significant change, opening up Mexico’s energy market and allowing the state-run oil concern Pemex to work with the world’s largest oil companies. It’s expected that these reforms, once enacted, will increase Mexico’s GDP growth from four percent to six percent a year.7

Making MoNeT

In parallel, MexDer and the Mexican government have done quite a bit to attract foreign investors, and to make it easy for them to access the market. Perhaps one of the most significant changes has been the development of the MoNeT matching engine, which went live on Bolsa Mexicana de Valores (BMV), the equities segment, last fall.

The MoNeT matching engine was designed to attract high-frequency traders, mainly from the U.S. and Europe. It boasts internal latencies of 90 microseconds, which is faster than the 110 microseconds of NASDAQ or 125 microseconds at the London Stock Exchange.8 BMV volumes have increased 30 percent to 40 percent since the launch of the new matching engine.9For international traders and investors, accessing MexDer is straightforward. The north-to-south routing available via CME Globex allows any TT customer with an existing CME infrastructure to route orders to MexDer’s matching engine. MexDer is also accessible now in TT’s MultiBroker environment, which is currently available in beta. Additional information regarding how CME users can access MexDer is posted on the CME website.There are a number of other reasons why doing business in Mexico is easier than most other Latin American countries. Unlike Brazil, there is no withholding tax of any kind on foreign investment. The Mexican peso is a freely traded and easily convertible currency, and MexDer’s clearing house, Asigna, accepts U.S. dollar-denominated collateral.

La Oportunidad Está En Todas Partes

Owing to the fact that the U.S. does $1.5 billion per day in trade with Mexico,10 the Mexican markets are, predictably, highly correlated with America’s. North-to-south customers trading MexDer via Globex have access to a number of financial futures that allow for arbitrage opportunities against their American counterparts.

MexDer lists the IPC index of the BMV, which in general tracks closely to the S&P 500. The full Mexican yield curve is available on MexDer, from one-month bills to 30-year bonds, and it converges with the U.S. yield curve. Finally, MexDer lists a Mexican peso/U.S. dollar FX future, one of the 20 biggest FX futures contracts in the world by volume, which sets up arbitrage opportunities with the CME’s equally liquid peso/U.S. dollar future. In a recent MarketsWiki interview, MexDer CEO Jorge Alegria indicated that going forward, the exchange would likely look to list commodity futures linked to similar contracts listed on CME Group.

BMV IPC vs. S&P 500
Chart obtained from Yahoo! Finance

The ascent of the Aztec Tiger is no sure thing. There is always the danger of President Nieto’s PRI party losing its appetite for reform and returning to its old ways. There’s the chance that the hiccups in the U.S. economic recovery may impact Mexico, given that 30 percent of the Mexican economy is tied to U.S. exports. There may even be signs that Mexico’s economy is stalling already, which led the central bank to reduce interest rates for the first time since March 2009. Either way, TT users now have the ability to participate in one of today’s most interesting markets.

1 Thomson, Adam. “Mexico: Aztec tiger.” Financial Times. January 30, 2013.
2 Rathbone, John-Paul. “Mexico’s reform plan lifts hopes for greater prosperity.” Financial Times. March 20, 2013
3 Kwan Yuk, Pan. “Mexican peso hits 19 month high”. Financial Times. March 14, 2013.

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

Mexico City-Based Broker CI Casa de Bolsa Signs with Perseus Telecom

  •  For the Fastest, Market-To-Market Connection with Mexico
  • Partnership enables New York and Mexico City trading communities to receive market signals and send transactions at the lowest latency rates available

Perseus Telecom, a leading global provider of connectivity, today announced that it has signed CI Casa de Bolsa to its ultra-low latency network between the New York and Mexico City markets. The launch of this partnership represents a landmark development as the fastest trading route between the two marketplaces and creates new opportunities for trading firms across the globe.

CI Casa de Bolsa, a leading Mexico City-based brokerage house, has a global client base seeking liquidity in the Mexican marketplace. With US-listed stocks displayed in Mexico, CI Casa de Bolsa has chosen Perseus Telecom for its high-speed, ultra low-latency network connection from New York to Mexico City for the fastest execution capabilities possible for foreign investors.

“We are very happy with our decision to use Perseus Telecom. Their network is built for performance and customer satisfaction without the overbearing costs that low-latency technology can sometimes bring to our bottom line,” states Mauricio Suarez, Head of International Sales at CI Casa de Bolsa. “The beneficiaries of lower costs and lower latency are our clients and serving them stands as CI Casa de Bolsa’s primary objective.”

Dr. Jock Percy, CEO of Perseus Telecom, explains, “We are quite pleased to have a reputable firm like CI Casa de Bolsa join the Perseus Telecom global network. As Perseus Telecom looks to bring more value to investment communities at different corners of the globe, markets like Latin America, led by Brazil and Mexico, are important to us and our customers. CI Casa de Bolsa coming on-net is a testament to our commitment to these markets.”

Source: Perseus Telekom, 07.01.2013

Filed under: Mexico, Trading Technology, , , , , , , , ,

ATG taps Nyse Technologies for ATS Brasil

Americas Trading Group (ATG) today announced the formation of a new company that will develop a liquidity center targeting the Brazilian exchange market called Americas Trading System Brasil or ATS Brasil.

Utilizing trading solutions developed by NYSE Technologies, the technology unit of NYSE Euronext, ATS Brasil will offer customers a new equities matching platform in Latin America.

ATG will maintain the controlling interest as well as operational management of the company with NYSE Technologies as a minority shareholder and the core technology provider. ATS Brasil plans to begin operations in 2013, subject to approvals by the Central Bank of Brazil and the Brazilian Securities Commission (CVM).

Fernando Cohen, ATG´s President, believes that the entry of ATS Brasil will have a positive effect on the local stock market as it will contribute to expanding the range of products and services offered to investors in the region. Cohen also emphasized the importance of NYSE Technologies’ decision to expand into the Brazilian market by becoming a partner of ATS Brasil.

Cohen stated that initially ATS Brasil intends to operate in a model known as “the organized OTC market” based on computerization and transparency in order registration and execution, and adopt rigid mechanisms of self-regulation. He further noted that ATS Brasil was not created to compete with BM&FBovespa, but rather to complement it by improving liquidity and price formation for Brazilian assets.

“The entry of ATS Brasil starts a new cycle in the Brazilian exchange market. Our innovative, high-performance order execution platform will generate more liquidity for the capital markets. This initiative should stimulate cost reduction by offering efficiency gains for investors and create the real possibility of placing the Brazilian market within international standards,” said Fernando Cohen.

Dominique Cerruti, President and Deputy CEO, NYSE Euronext said, “As a leading operator of global markets and market technology, we have designed and deployed proven, market-tested trading platforms in key market centers around the world. We are pleased to partner with ATG ith ATG as they expand their business into equities matching with the ATS Brasil initiative. Our technology platform should provide customers and market participants with the same high-quality trading experience, performance and reliability that they’ve come to expect from NYSE Euronext’s own exchanges.”

ATS Brasil will use the Universal Trading Platform (UTP) developed by NYSE Technologies and used by NYSE Euronext’s global markets. UTP has the capacity to process high volumes of messages with very low latency, giving market participants the opportunity to submit thousands of orders per second while also improving market transparency and liquidity. Additionally, ATS Brasil is expected to attract new investors to the Brazilian market, including local and international high frequency traders. ATG will also utilize NYSE Technologies’ Secure Financial Transaction Infrastructure (SFTI) network to provide global access and direct market data distribution for customers trading outside Brazil. 

Source: FinExtra , 06.11.2012

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

Cemex aims for $950m Latin American float in Colombia

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

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

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

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

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

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

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

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

Source: Financial Times, 22.10.2012

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

Latin America: Investor News Letter 19.October 2012

Mexico

Elektra to offer No-Fee Banking and Long Term loans to US low income population
Billionaire Ricardo Salinas said he wants to offer no-fee banking deposits and longer-term loans to low-income U.S. consumers, aiming to export his Mexico business model, successful in 8 Latin American countries to the world’s biggest economy.

Mexico’s market shines as reforms, confidence take hold
NYSE Technologies, Bolsa Mexicana and ATG build Mexican trading infrastructure
Slim-backed Mexican firm plans IPO, new cement company
Alsea to invest $110 million in Mexico, Argentina Starbucks cafes
Mexico passes law to combat cartel money laundering

Brazil

Itau Sinks as Rousseff Plan Hurts Bank Profits: Corporate Brazil

Brazil’s push to drive down consumer borrowing costs is eroding the value of its biggest banks.

Brazil wants to restrict strikes in public sector
Monsanto suspends collection of royalties in Brazil following state court ruling
Brazil M&A hits five-year low on turmoil, state intervention
Brazil and South Africa Form Partnership On Future Investment Promotion Initiatives
Brazil’s Water Sector Benefits From Investment Ahead of World Cup, Olympics

Latin America

Cencosud of Chile to Acquire Carrefour Colombia Division

Cencosud SA agreed to buy Carrefour SA’s Colombian unit for 2 billion euros ($2.6 billion) as it taps rising consumer spending in Latin America and the world’s second-largest retailer retreats from markets it can’t dominate.

Venezuela/Paraguay rift spoils Brazil’s plans for a ‘normal’ Mercosur summit
Singapore, the fastest growing market for Latin America
CAF Encourages Singapore to Invest in Latin America
Cuba Praises China-Latin America Ties
Latin America can produce double-digit investment returns over next decade
Arab and Latin American leaders agree to investment bank
LatAm’s Largest Solar Power Plant  in Peru receiving 40 MW of Solar PV Modules from China
Arab and LatAm leaders agree to investment bank
Peru central bank could allow more pension funds invested abroad
Latin American Ratings Strong Enough to Weather a Commodity-Cycle Downturn
Latin American gold rush brings riches, conflict
Latin lithium output mired in controversy

Source: Various 19.10.2012

Filed under: Argentina, Banking, Brazil, Chile, China, Colombia, Energy & Environment, Mexico, Peru, Singapore, Venezuela, , , , , , , , , , , , , , , , , , , , , , ,

Nyse Technologies, Bolsa Mexicana and ATG build Mexican trading infrastructure

Nyse Technologies, the commercial technology division of Nyse Euronext (NYX: NYX) today announced that in collaboration with Bolsa Mexicana de Valores (BMV) and Americas Trading Group (ATG) it has built and deployed a state-of-the-art trading infrastructure complete with global connectivity, risk management functionality and direct market data distribution for customers trading in Mexican markets.

Designed to support the launch of Bolsa Mexicana’s new matching engine and midpoint hidden order book, this solution incorporates advanced technology developed specifically for every part of the trade cycle to provide unprecedented accessibility, performance and risk management for trading on Bolsa Mexicana’s exchanges with the aim of establishing Mexico as a premier Latin American investment destination.

Initially, this collaboration will provide:
• A new co-location model for access to cash and derivatives markets (through ATG directly at the KIO Data Center)
• Global connectivity for buy side, sell side and vendors from the US, Europe, Asia and also other Latin American markets such as Brazil and Chile.
• Sophisticated risk management functionality for international order routing (solution implemented by NYSE Technologies)
• Low touch order stamping by Bolsa Mexicana’s members to settle orders
• Global Market Data distribution via NYSE Technologies Secure Financial Transaction Infrastructure (SFTI) with direct contracting with BMV

“We are excited to again work with one of Latin America’s leading market operators in Bolsa Mexicana and market participants in ATG to deliver dramatic improvements across critical elements of the trade cycle,” said Dominique Cerruti, NYSE Technologies. “By continuing to improve access to key Latin American exchanges and customers, we continue to realize our vision of creating a global capital markets community with cutting-edge connectivity, performance and risk management.”

“Today’s announcement with NYSE Technologies and ATG demonstrates our ongoing commitment to grow and enhance our markets in Mexico to deliver highly flexible multi-market, multi-asset trading,” said Jorge Alegria, Head of Market Operations, Bolsa Mexicana de Valores. “We look forward to extending our relationship and cooperation with NYSE Technologies in several important areas that will f further expand that growth and performance in the near future.”

Source: FinExtra, 18.10.2012

Filed under: Asia, BMV - Mexico, Chile, Colombia, Data Management, Data Vendor, Latin America, Market Data, Mexico, Risk Management, Trading Technology, , , , , , , , , , , , , , ,

BMV – Mexico’s Stock Exchange to change trading hours from October 29 – November 1st, 2012

Mexico’s Stock Exchange  will change its trading hours from 08:30-15:00 local time (09:30-16:00 EST) to 07:30-14:00 local time (8:30-15:00 EST) from October 29 thru November 1 to adjust to the daylight savings time difference between Mexico and the US. Mexico’s Stock Exchange will continue to trade the same trading hours that the NYSE is open, during that period.

Source: BMV,10.10.2012

 

Filed under: Exchanges, Mexico, , , ,

Latin America: Investor News Letter 21.September 2012

Mexico

Analysis: China worries spur Mexico stock market flows

MEXICO CITY – Mexico has been on the wrong side of China’s economic boom for the last decade, but is now seeing an upturn in its fortunes as the Asian powerhouse’s economy slows and international stock pickers look to hedge their bets.

Can Mexico live up to its investment potential?
Deutsche Bank Downbeat On Brazil In Wake of Intervention; Mexico Retail Sales Up

Mexico, the “Forgotten” Emerging Market


Brazil

Brazil mulls raising Mexico car trade quota – sources

Brazil is considering raising a three-year bilateral auto trade pact quota it agreed to with Mexico in March, potentially allowing Mexican exporters to sell around $350 million worth of additional vehicles to the Brazilian market annually.

Brazil: PE cools in Brazil, warmes in Mexico and Andes

US urges Brazil in “clear terms’ not to hike tariffs

Brazil reacts to US stimuli saying it will keep the Real ‘devalued’ and competitive

Brazil ethanol returns to US as biofuel rules pave way

Goldman Sachs Plans Private-Equity Comeback in Brazil


Latin America

Colombia rapidly becoming another “positive surprise” from Latinamerica

Uruguay’s economy suffers slight deceleration in 2Q but on track to the 4% target

IMF calls on Argentina to implement measures on the quality of official data

Moody’s changes Argentina rating outlook to negative from stable

Deal Analysis: Panama City Metro Line 1

Gazprom in talks with Argentina’s YPF on LNG supplies

Private equity in LatAm: less new money, more deals

Shadow banking to dominate in LatAm projects

Cuba struggles with foreign investment, growth

China Steps Up Push Into Latin America

Korean Art fair highlights Latin American art

Filed under: Argentina, Banking, Brazil, Central America, Chile, China, Colombia, Energy & Environment, Events, Latin America, Mexico, Peru, Risk Management, Wealth Management, , , , , , , , , , , , , , , , , , , , , , ,

Mexico: BMV Mexican Stock Exchange Aims to Attract High Frequency Traders with Platform Upgrade

Mexican stock exchange operator Bolsa Mexicana de Valores detailed its investment in a new trading platform that the bourse hopes will reduce execution time for trades while also boosting trading activity.

The platform will enable the bourse to complete a trade in 90 microseconds, or to facilitate around 100,000 transactions per second, putting it on par with the Singapore Stock Exchange and besting the New York Stock Exchange’s completion rate of 150 microseconds per trade, the Mexican exchange said. The platform, which began handling stock transactions on Sept. 3 and will handle derivatives trades starting in December, cost the bourse 150 million pesos ($11.5 million.)

The Mexican exchange hopes the updated platform will attract a greater number of sophisticated international market participants who are interested in executing algorithmic trades. Currently, such high-frequency trades account for 17% of the volume operated on the bourse, versus 70% of the volume in the U.S., the exchange said. In August the exchange averaged 1.9 million stock transactions a day.

The new platform also incorporates filters to prevent erroneous trades, for example by detecting price action that is out of sync with the market or unusually high volumes. In April the local brokerage house of Bulltick Capital Markets triggered a mini “flash crash” by entering an erroneous trade, knocking Mexico’s benchmark IPC stock index down about 2 percentage points.

Source: FIF Financial Information Forum, 17.09.2012

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

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

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

Read full article Mexico the Growth Market

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

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

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

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

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

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

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

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

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

…..

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

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

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

Fidessa explores the development of electronic trading in Latin America

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

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

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

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

Source: Bobsguide, Fidessa 12.07.2012

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

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