FiNETIK – Asia and Latin America – Market News Network

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Peru: LSE signs Bolsa de Valores de Lima to MillenniumIT tech

London Stock Exchange Group today announced that it has entered into a technology partnership with Bolsa de Valores de Lima.

MillenniumIT, a wholly-owned subsidiary of London Stock Exchange Group will provide state of the art trading and Smart Order Routing technology to Peru’s markets via its ultra low latency, highly scalable trading platform, Millennium Exchange and Millennium SOR.

Tony Weeresinghe, Director of Global Development at London Stock Exchange Group and CEO of MillenniumIT, said: “This is a significant achievement for us. Peru is one of Latin America’s fastest growing economies, and there is need for efficient, reliable capital markets infrastructure as business and investment continues to develop there. We look forward to building on this partnership, and playing our part in the next stage of Bolsa de Valores de Lima’s development.”

Francis Stenning, CEO at Bolsa de Valores de Lima, said: “We are very conscious of the relevance of technology in our business. That is why we believe this upgrade in our electronic trading platform and order routing system will take us to the forefront of technology. It will allow Bolsa de Valores de Lima to keep up with the growing Peruvian economy, provide new services to the local market and increase its efficiency. This will allow us to benefit from better tools and a strategic alliance with one of the most developed stock exchanges in the world, London Stock Exchange Group, and to take advantage of more globally interconnected markets, including MILA.”

Source: Finextra, 18.01.2013

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

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

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

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

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

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

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

Source: Mondovisione, 01.05.2012

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

Peru: Lima Stock Exchange (Bolsa de Valores de Lima) selects the SunGard Global Network for Market Data Distribution Bolsa de Valores de Lima selects the SunGard global network for Market Data Distribution

Bolsa de Valores de Lima S.A. (BVL), the Peruvian stock exchange, has selected the SunGard Global Network (SGN) as a distribution channel for its data.

Peru is expected to be Latin America’s fastest growing economy in 2012, according to its Economy and Finance Minister. U.S. Department of State figures show that its economic growth averaged 7.0% a year for the 7 years up to 2010, due in large part to market-oriented economic reforms and privatization, as well as high international prices for the country’s largest commodity exports.

SGN will help BVL reach a broad international audience by delivering its real-time market data and multi-asset class historical data and analytics to asset managers and brokers worldwide. Those firms will also be able to route orders to the exchange via SGN, contributing to activity on BVL.

Francis Stenning, chief executive officer of the Bolsa de Valores de Lima, said, “Joining the SunGard Global Network will help Bolsa de Valores de Lima increase our visibility internationally and create new trading opportunities for our members.”

Philippe Carré, global head of connectivity of SunGard’s capital markets business, said, “We are seeing increased demand for direct connectivity to Latin America as the debt crisis drives international investors to seek alternatives to western Europe and US markets. The SunGard Global Network makes it easy to route orders and access real-time, high quality data, helping our customers operate more efficiently and make more informed trading decisions.”

Source: BobsGuide,17.04.2012

Filed under: Exchanges, Latin America, Market Data, Peru, , , , , , ,

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

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

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

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

About BMV Group

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

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

About MILA

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

Source: Business wire, 05.12.2011

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

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

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

Andres Araya Falcone

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

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

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

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

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

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

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

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

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

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

How important is low latency trading to your marketplace?

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

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

Have regulations recently opened up Chiles market to foreign investment?

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

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

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

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

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

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

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

Andean Exchange Project:Colombia and Peru plan to merge Exchanges

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

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

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

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

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

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

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

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

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

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

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

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

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

Source: FT, 19.01.2011 by By Naomi Mapstone in Lima

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

Andean Exchange Project MILA to Proceed without Peru

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

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

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

Source: The Trader, 23.12.2010

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

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

CMA launches Latin America algo trading offering

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

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

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

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

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

Source: FINEXTRA, 23.11.2009

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

Colombia Stock Exchange seeks regional integration

Colombia’s Bolsa de Valores (BVC) is actively looking to merge with other Latin American Exchanges and has been in talks with the Lima Exchange (BVL) as well as Panama’s (BVP), according to a New York based Equity Analyst covering exchanges. “Colombia is pushing for integration and has already signed several MOUs with Lima”, the analysts says. See also pervious FiNETIK news 04.08.2008.
One problem is that while the Columbian Exchange has talked to Lima, it has not talked to Cavali, Lima’s ClearingHouse. The Lima exchange owns 30% and if an offer for the exchange does not include Cavali another party could set up an other trading system.
Source: LatinFianance, 24.04.2009

Filed under: Central America, Colombia, Exchanges, News, Peru, , , , , , , , , , ,

Bolsa De Brazil Wants To Create A Network With Neighbouring Markets

The BM & F Brazilian stock exchange Bovespa, has initiated contacts with Chile, Peru and Colombia with the aim of getting closer ties with its neighbours, enhance the attractiveness of Latin America and ensure flows of investments to the region. Representatives of the exchange will meet in Chile with local stock exchanges and regulators in order to facilitate transactions between the two stock markets.

Paulo Oliveira Junior, Vice President and Director of New Business Development of BM & F Bovespa, said that there was “A great interest in keeping the market liquidity here in our continent, in creating new products, developing bilateral relations among countries to prevent a flight of capital or investment to other places.” He added that the best way to do this is to strengthen local markets.

“Our idea is not acquisitions but cooperation. If it is necessary to invest in new trading platforms, product development or invest in people, we are prepared to meet and work together,” said Oliveira. The first step is to know what local markets can buy in Brazil. How can, for example, a Brazilian investor easily invest in Chile and vice versa.” “You then seek to create a network with the exchanges in Chile, Peru and Colombia, by using cooperation, partnership and not by creating a single entity to manage the markets in the region.”

Next the Brazilian market executives will visit the exchanges in Peru and Colombia. BM & F Bovespa already has close ties with exchanges in Argentina and Mexico.

Source: BOVESPA 29.08.08

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

Columbia and Lima Stock Exchange study possible alliance

The Colombia and Lima Stock Exchanges are exploring alternatives for a possible integration of their equities markets, which trade daily around USD 50 million on average. A statement by Colombia stock exchange affirmed that both exchanges have approached their respective authorities to study the feasibility of the project.

The two exchanges are now exploring options for possible integration while preserving local structures, as indicated by the Colombian market. Peru is the main destination for Colombian investments abroad, which is particularly concentrated in the energy sector. More information on the progress of these negotiations will probably be available by the end of the year.

The Lima Stock Exchange confirmed talks by executives of both markets, although it reported that it was premature to establish the manner and date by which the integration will take place. Roberto Hoyle, president of the Peruvian stock exchange, in a statement said:”We are very interested in the possibility of a future integration of our equity markets first and later the fixed income markets.

Source: Lima Stock Exchange, WEF, FINEXTRA 04. August 2008

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

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