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Brazil: BM&F BOVESPA – March 2012 -News Nr 31

Cross-Listing of Global Benchmark Equity Index, Commodity and Energy Futures
BM&FBOVESPA (BVMF), CME Group and S&P Indices announced on March 6 a cross-listing and cross-licensing agreement involving S&P 500 Index and BOVESPA Index (IBOVESPA) futures.

BRICS Exchanges to Cross-list Benchmark Equity Index Derivatives
The five founding members of the BRICS Exchanges Alliance will begin cross-listing benchmark equity index derivatives on each other’s trading platforms on March 30.

New Market Maker for Options on the Stock of Companhia Siderúrgica Nacional (CSNA3)
BM&FBOVESPA announced on March 20 that Citadel Securities LLC is the third institution selected as market maker for options on the stock of CSNA3.

Volumes and trades by Direct Market Access (DMA)

BM&F Segment (Derivatives)
In February, the transactions carried out via Direct Market Access (DMA) in the BM&F* segment totaled 25,853,695 contracts traded in 2,616,094 trades.

BOVESPA Segment (Equities)
In February, the transactions carried out via Direct Market Access (DMA) in the BOVESPA* segment had a total financial volume of BRL104.5 billion in 14,985,594 trades

MARKET RESULTS

BM&F Segment February 2012 (derivatives)
In February, the markets in the BM&F segment had a total of 47,434,891 contracts traded with a financial volume of BRL3.11 trillion.

BOVESPA Segment February 2012 (equities)
In February, the total financial volume in the BOVESPA segment reached BRL157.36 billion, compared to a total of BRL132.26 billion in January.

Click for detailed announcement

Source: BM&FBOVESPA, 24.03.2012

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

Brazil: BM&FBOVESPA – News October 2011 – Nr.21

BRIC exchanges announce alliance

The exchanges of the BRIC emerging markets bloc announced a joint initiative on October 12, during the 51st AGM of the World Federation of Exchanges (WFE) in Johannesburg, to offer investors access to their dynamic economies. Initially the exchanges – which accounted for over 18% of all exchange-listed derivative contracts traded by volume worldwide as of June this year – will cross-list benchmark equity index derivatives on the boards of other alliance members. Following this, the alliance will develop innovative products to track the BRIC exchanges.

The seven exchanges are:

  • BM&FBOVESPA – Brazil
  • MICEX – Russia
  • RTS – Russia
  • Hong Kong Exchanges and Clearing Limited (HKEx) – China
  • Johannesburg Stock Exchange (JSE) – South Africa
  • The National Stock Exchange of India (NSE) – India
  • BSE Ltd (formerly known as Bombay Stock Exchange) – India

These seven exchanges represent a combined listed market capitalization of USD9.02 trillion, equitymarket trading value/month of USD422 billion and 9,481 companies listed.

BM&FBOVESPA new trading hours

In view of the start of daylight saving time on October 16, 2011, since October 17, 2011, the new trading hours (Brasília Time) for the BM&FBOVESPA markets – BOVESPA and BM&F segments – will be as follows:

Regular session: 11:00 a.m. – 6:00 p.m.

- After-Market: 6:30 p.m. – 7:30 p.m. (pre-opening phase to trading phase);

- Blocking / Exercise on the stock options market
Days prior to expiration: 11:00 a.m. – 5:00 p.m. (exercise of holder position).
Expiration date: 11:00a.m. – 12:30 p.m. – trading of the expired series to the offset of the position, that is, the sale for the holder of the position and purchase for blocking for the writer of the position / 12:30 p.m. – 2:00 p.m.: exercise of the holder position;

- Blocking / Exercise on the Index Options Market:
Days prior to expiration: 11:00 a.m. – 2:00 p.m. (exercise of holder position).
Expiration date: 11:00 a.m. – 2:00 p.m. – trading of the expired series to the offset of the position, that is sale for the holder of the position and purchase for blocking for the writer of the position / After 6:00 p.m. – automatic exercise of the expired series which fit the following situations: call option (settlement index higher than the exercise price; and put option (settlement index lower than the exercise price).

- Over-the-Counter Market: 11:00 a.m. – 6:00 p.m.

> Complete information of the new trading hours (Circular Letters 009-2011-DO-Ofício Circular)

The trading hours for the BOVESPA and BM&F segments are available at this link

Market Makers for Options on the Stock of Banco Bradesco, Gerdau and Banco do Brasil

BM&FBOVESPA announced on August 3rd the start of the bidding process to select up to three market makers for options on stock of Banco Bradesco S.A. (BBDC4), Gerdau S.A. (GGBR4) and Banco do Brasil S.A. (BBAS3). This is the third stage of the Competitive Bidding Process to select market makers in equity options and BOVESPA Index (Ibovespa) options, developed by BM&FBOVESPA. The institutions (including nonresident) that wish to participate have until November 29, 2011 to deliver proposals and the winners will be announced on December 14, 2011.

> More info

Market Makers for Options on Ibovespa and on Stocks of BM&FBOVESPA and Usiminas

BM&FBOVESPA announced on October 11 the winning institutions in the second selection process for market makers for options on stocks and on the BOVESPA Index (Ibovespa). The market maker obligation shall last twelve (12) months as of December 12, 2011. Banco Citigroup Global Markets Limited, Banco Itaú BBA S.A. and Timber Hill LLC shall be market makers for options on the BOVESPA Index (IBOV), complying with a maximum volatility spread of half a percentage point (0.5%). The institutions selected for options on stocks in BM&FBOVESPA S.A. (BVMF3) were Citadel Securities LLC, Citigroup Global Markets Limited and Morgan Stanley Uruguay Ltda, which shall be market makers complying with a maximum volatility spread of four percent (4%). Meanwhile, the institutions selected for options on stocks in Usinas Siderúrgicas de Minas Gerais S.A. (USIM5) were Banco BTG Pactual S.A. and Morgan Stanley Uruguay Ltda, which shall be market makers complying with a maximum volatility spread of twenty percent (20%).

> More info

Options on OGX Petróleo and Itaú Unibanco rise with Market Maker activity

The trading volume for options on the stocks of OGX Petróleo and Itaú Unibanco rose significantly in September, strongly influenced by the fact that they have had Market Makers since September 9. The Exchange launched the Market Maker program for stocks this year in order to encourage trading in options and increase their liquidity, as well as to stimulate longer expiries on these contracts. Options on the stocks of OGX Petróleo and Itaú Unibanco now have three Market Makers.

Comparing the average daily volume in September to that of January to August, there were the following increases: OGX Petróleo ON 51.9% (BRL 13.7 million against BRL 20.8 million) and Itaú Unibanco PN 205.6% (BRL 1.7 million against BRL 5.1 million).

ETF financial volume more than doubles in the past two months

BM&FBOVESPA Exchange Traded Funds (ETFs) reached BRL 1.4 billion financial volume in August and September, at 78,809 and 75,740 trades respectively. This is more than double the BRL 668 million financial volume and 31,997 trades in July.

Common Shares in Desenvix Energias Renováveis start trading on BOVESPA MAIS

The shares of electricity company Desenvix Energias Renováveis S.A. begin to be traded on October 3 on the BOVESPA MAIS segment of the BM&FBOVESPA Organized OTC Market, under the DVIX3M ticker symbol.

USD11 billion in public offerings and follow-ons in 2011

In the year to October, 15, BM&FBOVESPA registered USD11 billion in public offerings and follow-ons. There were eleven Initial Public Offerings (IPOs) in 2011: AREZZO&CO (ARZZ3), SIERRA BRASIL (SSBR3), AUTOMETAL (AUTM3), QGEP PART (QGEP3), IMC HOLDING (IMCH3), TIME FOR FUN (SHOW3), MAGAZINE LUIZA (MGLU3), BR PHARMA (BPHA3), QUALICORP (QUAL3), TECHNOS (TECN3) and ABRIL EDUCAÇÃO (ABRE11).

BM&FBOVESPA on Twitter

BM&FBOVESPA launched its Twitter account in English last week. Please access this link

2011 EVENTS

 The World Cup of ETFs and Indexing Latin America

BM&FBOVESPA is lending its support to the World Research Group’s “World Cup of ETFs and Indexing Latin America.” The event aims at providing attendees with the best practices for ETF use, as well as a comprehensive analysis of market structure, regulations and current and future opportunities. The expected audience includes pension funds, hedge fund managers and investors, investment advisors, financial consultants, and other market participants. A BM&FBOVESPA representative will talk about the Exchange’s ETF products.

Location: São Paulo (TBC)
Date: October 17-18, 2011.
> Full Agenda and Registration

2nd FX Growth Markets Series: Brazil – Profit & Loss

BM&FBOVESPA will join the Profit & Loss FX Growth Markets conference on October 20, 2011 at the Tivoli Hotel in São Paulo. Profit & Loss has been operating its highly successful series of Forex Network and FX Growth Markets conferences for more than 10 years, with regular annual events held in London, New York, Chicago, Singapore, Brazil, Mexico, Colombia, Chile, Shanghai and Toronto, and comes to Brazil for the second time. A BM&FBOVESPA representative will talk at the event.

Location: Tivoli Hotel São Paulo, São Paulo, Brazil
Date: October 20, 2011.
> Full Agenda

2nd Brazil–China Capital Markets Forum

BM&FBOVESPA and the Shanghai Stock Exchange are coordinating the Second Brazil–China Capital Markets Forum. This event follows the First Brazil–China Capital Markets Forum, which occurred in February in São Paulo, Brazil. At the event, the Shanghai Stock Exchange shall bring 300 to 500 Chinese asset and insurance managers and representatives of listed companies.

Location: Xijiao State Guest House Shanghai, China
Date: October 27, 2011.

Volumes and trades by Direct Market Access (DMA)

BM&F Segment
In September, BM&F* market segment transactions carried out through order routing via Direct Market Access (DMA) registered 35,144,357 contracts traded and 4,311,865 trades. In August, the volume reached 41,417,494 contracts traded and 4,431,750 trades.

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

  • Traditional DMA – 12,583,334 contracts traded, in 1,366,264 trades, in comparison to 17,540,231 contracts and 1,306,241 trades in August;
  • Via DMA provider (including orders routed via the Globex System) – 13,976,949 contracts traded, in 374,992 trades, compared to 14,088,756 contracts and 435,281 trades in August;
  • DMA via direct connection – 2,636 contracts traded in 447 trades, against 4,210 contracts and 830 trades in August;
  • DMA via co-location – 8,581,438 contracts traded, in 2,570,162 trades, compared to 9,784,297 contracts and 2,689,398 trades in August.

In September, 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 4,685,186 contracts traded, in 1,164,510 trades, compared to 5,308,308 contracts and 1,235,349 trades in August.

BOVESPA Segment
In September, order routing via DMA in the BOVESPA* segment totaled BRL 111.41 billion and 14,298,483 trades, from BRL 138.52 billion and 17,021,408 trades the previous month.

Trading volumes per type of DMA in the BOVESPA segment:

  • Traditional DMA – Volume of BRL 95.77 billion and 11,763,618 trades from BRL 120.45 billion and 14,098,638 in August;
  • DMA via co-location – Volume of BRL 14.29 billion and 2,357,270 trades from BRL 16.69 billion and 2,755,498 in August;
  • DMA via provider – Volume of BRL 1.34 billion and 177,044 trades from BRL 1.37 billion and 167,272 in August.

* Direct access to the BM&FBOVESPA market segments is carried out through DMA models 1, 2, 3 and 4. In model 1 or traditional DMA, the client accesses the GTS or Mega Bolsa through technological intermediation of a brokerage house. In model 2 or via DMA provider, the client does not use the technological intermediation of a brokerage house, but rather connects to the system through an authorized access provider. DMA via order routing with CME Globex is also a form of DMA model 2. In model 3, the client connects to the system through a direct connection. In model 4 or via co-location, the client installs its own computer within the Exchange’s facilities.

Notes:

The volumes registered by access modality include both buy and sell sides of a trade.

The volumes by access modality for both the BM&F and the BOVESPA market segments have been reported in a consolidated manner in the BM&FBOVESPA statements since May 2009.

MARKET RESULTS

BM&F Segment September 2011

Derivatives markets in the BM&F segment (including financial and commodities derivatives) totaled 59,365,524 contracts and BRL 4.35 trillion in volume in September, compared to 78,606,873 contracts and BRL 5.23 trillion in August. The daily average of contracts traded in the derivatives markets in September was 2,826,930, in contrast to 3,417,690 in August. Open interest contracts ended the last trading day of September with 36,620,797 positions, compared to 37,821,302 in August.

BOVESPA Segment September 2011

In September 2011, the equity markets (BOVESPA segment) financial volume totaled BRL 131.437 billion, in 13,551,487 trades, with daily averages of BRL 6.25 billion and 645,309 trades. In August, financial volume totaled BRL 177.906 billion, the total number of trades 16,234,673, and the daily averages BRL 7.73 billion and 705,855 trades respectively.

Source: BM&FBOVESPA, 18.10.2011

Filed under: BM&FBOVESPA, Brazil, China, Events, Exchanges, Hong Kong, India, Risk Management, , , , , , , , , , , , , , , , , , , , , , , , , ,

Brazil: BRIC exchanges form alliance

The exchanges of the Brics emerging markets bloc have announced plans to form an alliance in cross-listing and to expose foreign investors to their dynamic economies and to increase the liquidity of their trading venues (Brazil, Russia, India, Hong Kong (China), South Africa)

This initiative was announced at the 51st AGM of the World Federation of Exchanges (WFE) in Johannesburg.

The initiative brings together BM&FBOVESPA from Brazil, MICEX from Russia (currently merging with RTS Stock Exchange), Hong Kong Exchanges and Clearing Limited (HKEx, China) and Johannesburg Stock Exchange (JSE) from South Africa. The National Stock Exchange of India (NSE) and the BSE Ltd (India) have signed letters of support and will join the alliance after finalizing outstanding requirements.

At the first stage of this project the exchanges will begin cross-listing of financial derivatives on their benchmark equity indices. It is planned to launch cross-listed products by June 2012.

“Global investors are increasingly seeking exposure to leading developing markets,” says Ronald Arculli, chairman of HKEx and of the WFE. “Thanks to this alliance, investors will gain easier access to major equity index derivatives of the BRICS markets which will now be offered in local currency on the alliance exchanges”.

This is an important milestone in the history of developing countries, continues Mr Arculli. “The alliance enables more investors to gain exposure to the emerging economies of the BRICS group whose economic power is on the rise. From a global perspective this alliance highlights the growing significance of the BRICS economies and financial markets for the coming decade, and further underlines the importance of enhancing cooperation between the BRICS members”.

At the second stage of the project members of the alliance plan to jointly develop new products for cross-listing on their exchanges. “In addition to measuring market performance, equity indices may be used as underlying assets to create new products, which can be the next step in the alliance development”, says Russell Loubser, CEO of the JSE.

“The products designed at the second stage would then be cross listed and traded in local currencies,” says Edemir Pinto, CEO of BM&F BOVESPA. “They will also ensure easy access for investors to other emerging markets through locally listed products.”

The third stage may include further cooperation in joint products design and new services development.

“Apart from cross-listing products, there are other opportunities for growth and development within this alliance. For example, creation of joint products combining various underliers which will facilitate liquidity growth in the BRICS markets and improve the understanding of other developing markets by local investors,” says Ruben Aganbegyan, President of MICEX.

All the partnering exchanges estimate the potential for cooperation created by this alliance very positively.

“The BRICS exchanges alliance has a great potential as it will create avenues for Indian investors to diversify their portfolios and expand into other emerging markets. It will also provide unique opportunities to investors in other BRICS nations to participate and contribute in India’s growth. BSE will actively work towards bringing world-class products to India as well as developing new products for other BRICS markets.” says Madhu Kannan, CEO of BSE Ltd.

Interest towards the BRICS markets is supported by the above-average growth forecast for these regions, as well as the rising consumer power generated by growing middle classes in each of the participating economies” says Ravi Narain, MD of the National Stock Exchange of India.

According to the WFE these six exchanges represent a combined market capitalization of USD 9.02 trillion, the number of their ussuer companies totals 9.5 thousand.

As per the research by the Futures Industry Association these six exchanges accounted for 18% of the global turnover in financial derivatives in H1 of 2011.

Source: BM&FBOVESPA, FinExtra, 12.10.2011

Filed under: BM&FBOVESPA, Brazil, China, Exchanges, Hong Kong, India, News, , , , , , , , , , , , , , ,

China: Governor of the Shanghai Stock Exchange (SSE) Geng corrects three Misunderstandings on International Board

Geng Liang, member of the CPPCC National Committee and Governor of the Shanghai Stock Exchange (SSE), clarified ambiguous and incorrect assumptions in development of International Board in Beijing yesterday.

According to Geng, the introduction of International Board would benefit both the development of domestic capital market and the building of Shanghai into an international financial hub and would by no means reduce itself into a global ATM machine as some concerned.

Three Major Positive Effects of Int’l Board

“The decision of listing eligible overseas companies on domestic market, or introducing International Board, is made based on the consensuses reached through the Sino-US strategic economic dialogues and Sino-UK economic and trade dialogues. For China’s capital market, the launch of International Board will bring about benefits in three aspects,” said Geng. First of all, the launch of International Board, a milestone in China’s opening-up of its capital market, offers domestic investors a new channel to purchase shares of large overseas companies with RMB, which is by all means a progress.

Relevant insiders also hold that the opening of International Board is especially conducive to the investment in overseas enterprises by investors who are inexperienced in overseas investment and unfamiliar with foreign law and accounting systems.

Besides, the development of International Board will exert positive influence on the construction of blue-chip market, thus promoting the growth of China’s capital market. “The ultimate goal of the SSE is to build a blue-chip market, which includes high-quality Chinese and foreign listed companies,” added Geng.

Finally, International Board means a lot to building Shanghai into a global financial center. “The listing of overseas companies on domestic market will help pool human resources, capital and institutions to Shanghai,” noted Geng.

No Possibility for “Int’l ATM machine”

As to the concern about misusing International Board as “a global ATM machine”, Geng explained that under the arrangement that free exchange is forbidden under the RMB capital account, the A shares on the future International Board can’t be exchanged freely with the shares issued overseas. Thus, there is no possibility for “a global ATM machine”. Furthermore, “the large international companies, who apply for going listed on the SSE, have already got listed on overseas stock exchanges. Their listing on Chinese market is actually a behavior of refinancing. According to internationally accepted practices, the prices for refinancing generally shouldn’t exceed those on local secondary market.” Therefore, it is not qualified to be “a withdrawing behavior” in terms of scale.

Geng also stated that the launch of International Board would not impact Hong Kong’s position as an international financial center. “The support to Hong Kong market instead of affecting its construction of international financial hub by the return of H shares to A shares is a case in point. During the 20 years’ development of China’s capital market, 60 domestic enterprises went listed in Hong Kong, which vividly proved that the development of domestic capital market boosted Hong Kong market and exchange.”

Substantial Benefits of Int’l Board

Insiders hold that the benefits of initiating International Board are substantial. Apart from those mentioned by Geng, there are at least five more major benefits.

First, the new board will relieve the pressure from foreign exchange reserve, which accords with the development transition of national economy from capital attraction to technical, managerial and human resources introduction. Second, the new board will attract overseas natural resources and energy enterprises to get listed in China, thus helping break their capital barrier towards China’s capital by counteracting the increase in international commodity prices with equity income. Third, the new board provides a channel for Chinese investors to share the income from business conducted by multinational companies in China while changing the situation that multinational companies can only offer job opportunities to Chinese. Fourth, the corporate governance of domestic listed companies will be improved thanks to the model effect of overseas companies listed in China. Last but not least, the new board will help multinational companies integrate themselves with China’ economy to make greater contribution to the development of China’s economy.

Source: MondoVisione, 11.03.2010

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

The bumpy road to the international A-share trading board

While government officials and listing candidates are enthusiastic about the launch of the planned trading board, there are several hurdles that remain unresolved.

Designed to allow overseas companies to list shares on China’s major stock exchange, Shanghai’s highly anticipated international trading board is being heralded as a way to provide a powerful lift to the country’s equity markets in the year of the tiger, but it is turning into a paper tiger, experts say.

The planned board, which has been under discussion for years without tangible progress, was brought into the spotlight again last summer after government officials revealed the Chinese authorities’ determination to launch it. However, key issues such as share sale limits, the use of funds raised through share sales, accounting standards, and listing requirements remain unresolved.

Companies aiming for the international board first need to comply with Chinese accounting standards. However, it is very unrealistic to require companies with assets all over the world to comply with Chinese book-keeping rules and auditing standards, industry experts say.

Every year, the translation of an audit report based on general international standards into the Chinese accounting format could cost a typical company from $5 million to more than $10 million extra — an expense that all cost-conscious financial executives would want to avoid, experts say.

Another issue is that the nation’s corporate and securities laws currently only apply to domestic companies, and Chinese lawmakers are not ready to restructure the legal framework and make it more adaptable for foreign companies that want to offer A-shares.

The preparation of HSBC’s highly anticipated Shanghai share sale is suspended for “at least six months”, sources familiar with the deal said last week, citing technical problems in the listing process.

Also, with China running a top-down, command-and-control economy, the current review and approval procedure for the country’s equity capital market is an obstacle for foreign companies, strategists argue.

“Listings in China receive too much intervention by the government,” said Lou Gang, a China strategist at Morgan Stanley. “Launching an international board would test the current system for launching IPOs (initial public offerings),” he said.

Even so, apart from HSBC, other global players such as Standard Chartered Bank and the New York Stock Exchange have also expressed their enthusiasm for listing on the international trading board.

While overseas issuers are concerned about China’s listing regulations, Chinese investors and regulators are worried the outsiders will soak up too much liquidity from the country’s equity market.

The cautious sentiment among investors is evident in online forums in China, where the planned international trading board is hotly debated. Some say the foreign companies will take advantage of the Shanghai market’s high offering prices and valuations and make use of the stock exchange as an automatic teller machine.

Others warn that HSBC’s listing will absorb funds worth as much as 20 Nanpu Bridges in Shanghai — one of the longest highway bridges in the world, with a total construction cost reaching Rmb820 million ($120 million).

“HSBC will take 20 Nanpu Bridges away from us,” one forum participant wrote. “Don’t let the irrigation fertilise others’ fields,” wrote another.

Analysts suggest the authorities should require foreign companies to re-invest the proceeds from their share sales exclusively in China or give approval only to red-chip companies, which are registered overseas but with most of their assets and operations on the Chinese mainland.

Generally, regulators and market observers concur that the introduction of foreign company listings is a must and will help improve the country’s equity markets and accelerate the process of making the Chinese yuan freely convertible.

“Foreign company listings will set a good example for domestic companies in China,” said Wei Sun, Morgan Stanley’s China CEO.

Tu Guangshao, Shanghai’s vice mayor and a former vice-chairman of the China Securities Regulatory Commission, said at the Asian Financial Forum in Hong Kong last month that the municipal government strives to build the city into an international financial centre and that the creation of the planned board is in progress.

The international trading board was first brought to the table by Unilever Company in 2000 when the US retailer of personal care products expressed its interest in an A-share listing in a bid to strengthen its network and brand-name penetration in China. Discussion about the board has been under way ever since, but a concrete plan has yet to be made.

Commerce minister Chen Deming said at an investment conference in Xiamen last September that China will certainly allow listings by qualified foreign invested companies on the mainland stock exchange.

PricewaterhouseCoopers predicted last month that the board will start trading in the second half of this year. The new board may help the Shanghai Stock Exchange (SSE) to raise up to Rmb300 billion ($44 billion) through IPOs this year, overtaking its Hong Kong counterpart, which is forecast to raise HK$300 billion ($39 billion), the international accounting firm said.

Source: FinanceAsia.com,19.02.2010 by Lillian Liu

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

Mexican IPC Index ETF “iSHARES NAFTRAC” listed on Spain’s LATIBEX

BGI IShares listed it’s Mexican ETF (TRAC) NAFTRAC on the Spanish LATIBEX exchange on November 19th, 2009.

This is the first time a Mexican traded TRAC is listed abroad. It marks a significant recognition of the Mexican financial markets and in particular for BMV – Bolsa Mexicana de Valores (BMV) the Mexican Stock Exchange in it’s international expansion.

The NAFTRAC tracks the top 35 traded Mexican stocks according to the BMV IPC index. The TRAC was listed on April 16th, 2002 and was the first such instrument to be listed in Mexico and Latin America, and has become one of the most traded instruments in Mexico’s Stock Exchange.

Barclays Global Investors (BGI) Mexico, is underwriting and listing the TRAC on LATIBEX in Madrid, Spain.

Note: TRAC (Títulos Referenciados a Acciones) are the Mexican equivalent for ETF’s traded on the stock exchange and issued by BGI IShare Mexico

Note: BMV IPC tracks companies of global influence like WalMex, FEMSA (CocaCola), Telmex, Modelo, CEMEX, Bimbo, AMX, Bolsa and others with global operations and revenues. See latest performance of IPC here.

Source: BMV, 19.11.2009
Summarized translation by FiNETIK from BMV press release 19.11.2009

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

Shanghai Stock Exchang International listing Board on track

Positive signals for an international board on the Shanghai Stock Exchange point to a nearing launch. But major obstacles remain.

A growing din within financial circles suggests China’s proposed international board for foreign company stock trading is on the runway and approaching takeoff.

On September 8, Commerce Minister Chen Deming said at an investment conference in Xiamen that China would indeed allow listings by qualified foreign invested companies on mainland exchanges.

The same day, CITIC Securities International Chairman Ted Tokuchi said at a Caijing conference that if the Chinese stock market remains stable, a first draft for board listing rules could be released after China’s national holidays in early October. The news drove the A-share Shanghai Composite Index up 1.7 percent to close the day at 2930 points.

One or two foreign companies are expected to list through the board on the Shanghai exchange early next year, announced Fang Xinghai, director of the municipal Shanghai Financial Office, while describing Shanghai’s effort to build a new trading platform during a London visit in mid-September.

In another positive signal, Caijing learned that the China Securities Regulatory Commission (CSRC) has set up a working group under CSRC Vice Chairman Yao Gang that’s specifically dedicated to the task of building an international board.

At the Shanghai exchange, General Manager Zhang Yujun is in charge of a separate working group preparing for the board’s launch. And it’s been confirmed that the yuan will be the currency for all trades.

Nevertheless, several key issues remain unsettled. Yet to be decided are questions about accounting standards, listing requirements, share sale limits, and rules governing how raised funds can be used.

Indeed, there are plenty of controversies that could affect the launch of the international board, for which an official target startup date has not been announced. At worst, unsettled issues could park the project on the runway.

Longing to List

Tokuchi said up to six foreign companies have shown interest in listing on the Shanghai exchange. These include the banks HSBC and Standard Chartered, and the stock exchange NYSE. “It is very likely that they will list in the next two to three years,” he said.

Responding to a recent rumor that a red chip company would list on the Shanghai market this year, Tokuchi said that listing may be delayed until 2010. But he said the first company to list on the international board probably will be a red chip company.

A source tied to regulators told Caijing that a stable stock market could lead to a speed-up in preparations for red chip stocks now trading in Hong Kong to join the A-share market. Reportedly, these would include China Mobile and CNOOC.

Tokuchi predicted two to three companies, including red chips and foreign invested companies, would list on the Chinese stock market next year. Over the next five to six years, 20 to 30 companies will list. And within 15 years, he said, more than 100 mature companies will have listed on the Shanghai exchange.

According to Tokuchi’s analysis, foreign companies willing to list in Shanghai are mainly multinationals with fairly big stakes in China. Companies such as NYSE and HSBC aim to further integrate China into their global strategy maps.

However, some foreign companies are quite reserved about listing in Shanghai. Key reasons include listing requirements, fund-raising target rules, share price differences and delisting requirements.

Step By Step

The public first heard an official proposal for opening an international board in April 2007, when the Shanghai Stock Exchange released a Market Quality Report suggesting a new way for overseas companies to issue A shares.

CSRC released a draft regulation for a pilot program a month later, allowing overseas red chip companies to list on the A-share exchange. But for various reasons, the red chip A-share return plan was postponed two years.

Two years passed before the State Council confirmed that Shanghai would be promoted as an international center for finance and shipping – a move that brought the idea of an international board back to the table. After that, for the first time, CSRC and Shanghai exchange officials added the international board concept to the government’s working agenda. Last May, exchange chief Zhang publicly called for steadily advancing preparations for the international board.

Tu Guangshao, deputy mayor of Shanghai and former CSRC deputy chairman, later said overseas companies should be given access to the A-share exchange as part of the city’s long-term goal to build an international financial center.

Technical Bumps
Some technical issues, such as what kind of accounting standard should be used, market pricing and whether companies on the international board should be required to invest in China, are still being discussed.

Industry professionals say it’s unrealistic to require companies to comply with certain Chinese bookkeeping rules. “It is too costly for an international company with assets all over the world to comply with Chinese auditing standard,” said Zhu Junwei, general manager of capital markets with UBS Securities.

Changing to Chinese from international accounting could cost a company from US$ 5 million to more than US$ 10 million. “This is not even a one-time charge,” Zhu said. “Every year, a listed company would have to pay auditing fees.”

A senior executive at a securities firm, who asked not to be named, said international board listings should not follow in the footsteps of so-called panda bonds — yuan-denominated bonds issued by foreign companies in China.

Friction was apparent in October 2005 when International Finance Corp. (IFC) issued 1.13 billion yuan in pandas, and the Asia Development Bank used the bonds to raise 1 billion yuan. Both offered the bonds on interbank markets.

Neither issuer would accept a Chinese regulation requiring panda bonds to comply with Chinese accounting standards. After lengthy negotiations, IFC and the bank were exempted from the accounting rule and allowed to follow international credit rating and accounting standards. But they paid a price: Their bond offers were postponed several times by regulators.

Zhang recently told Caijing, “Listed companies on the international board should comply with Chinese regulations.” But he also noted that, as the nation’s corporate and securities laws currently only apply to domestic companies, the legal framework should be restructured for foreign companies that want to list A shares.

Other technical challenges surround IPOs. Lou Gang, a China strategist with Morgan Stanley, said launching an international board would test the current system for launching IPOs.

“With too much intervention by the government, listing access has become an asset,” Lou said, adding that the current review and approval procedure has become an obvious obstacle.

China could learn from its neighbor Japan, which set up an international board in the 1980s. By 1991, up to 131 foreign companies had listed on the Tokyo Stock Exchange.

Later, with the collapse of an asset bubble, many foreign companies delisted. And in April 2004, the Tokyo exchange canceled its foreign division. It then gave foreign and domestic companies equal rights and status.

Chen Changjie, an attorney with local law firm Guangda, said Japan’s international board failed due to a complex, tedious review and approval process.

Another issue for architects of a Chinese international board is that the proposal has intensified competition between Shanghai and Hong Kong.

“This affects the status of Hong Kong and Shanghai, and which one is more important,” said a Beijing-based securities executive. “In the environment, in which the yuan currency is not exchangeable, Shanghai can hardly be called an international financial center.

“All these issues are not easily resolved in the short term,” said Lou. “So the international board does not present a rosy picture.”

Source: Caijing Magazine, 15.10.2009 by staff reporters Fan Junli and Shen Hu

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

SGX Q4 net profit rises 0.9 pct, sees more IPO demand

Singapore Exchange <SGXL.SI>, Asia’s second-largest listed bourse on Wednesday posted its highest profit in five quarters, beating estimates, and said it expects more listings if current market conditions hold.

The SGX said it was planning to launch commodity products such as gold and coffee, and had a robust pipeline for Exchange Traded Funds .

“Providing current market conditions prevail, we expect increased interest in new listings,” CEO Hsieh Fu Hua said in a statement.

Asian stock markets have seen trading volumes soar in recent months as investors bet the worst of the global financial crisis was over and the region would be the first to recover.

SGX stock trading volumes rose to an average of S$1.68 billion a day in April-June, up from S$910 million in the first three months of 2009 and S$1.62 billion a year ago.

Looking ahead, the firm said it hopes to grow the business through new listings, developing new customer types such as algorithmic traders and growing the derivatives business.

The number of new listings on SGX was, however, muted with just one initial public offering in April-June compared with nine a year ago and three in January-March 2009.

JPMorgan also expects new listings to resume soon in Singapore, in line with the recovery in stock prices, and said last month that SGX could see 6-10 new IPOs in the second half of 2009.

Peter Elston, strategist at Aberdeen Asset Management Asia, which owns SGX shares, said the firm sees the Singapore bourse as an attractive long-term investment due to its growth potential and relatively high dividends.

“It’s a long-term secular bull story… Over the next 10 to 20 years, Singapore will develop further as a financial centre the Asian century will mean Asian equity markets getting a much fairer representation in the world indexes.”

SGX said April-June net profit was S$91.2 million ($63.60 million) from S$90.4 million a year earlier, exceeding the S$81.5 million average forecast of 20 analysts polled by Reuters.

The fiscal fourth quarter profit was 65 percent higher than the S$55.3 million reported for the previous quarter ended March as stock trading volumes in Singapore bounced back to year-ago levels.

The final dividend was 15.5 cents, cut from 29 cents a year ago.

Shares in SGX, which has a market value of $6.4 billion, closed down 0.35 percent at S$8.59 ahead of the results. The stock has risen about 70 percent since the start of 2009, beating a 50 percent gain in the benchmark Straits Times Index.

Source: Reuters , 05.08.2009

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

Nasdaq OMX ‘closes’ India liaison office

Nasdaq OMX, the transatlantic exchange, has closed its liaison office in India, people familiar with the matter have said. The move comes after failing to list any Indian company on its New York-based exchange since it set up a presence in Bangalore, the country’s information technology hub, in 2001.

One of India’s most senior IT executives, who asked not to be named, said: “Nasdaq has done a lot in terms of educating companies in India but it has been very difficult for them to list companies on their US exchange and therefore it made no sense to keep an office open here”.

Indian IT companies, which contribute to about 25 per cent of the country’s total exports, generating $46.3bn (€32.7bn £27.7bn) in revenues last year, have boomed in the last 10 years providing vital software and back-office services to US and European multinationals.

Nasdaq has been competing aggressively for global listings. However, Kiran Karnik, former president of Nasscom, the Indian software trade body, said the global financial crisis and high regulatory costs in the US had been strong deterrents for Indian groups looking at the US.

He said: “The regulatory environment in the US was perceived [by Indians] as being very high in terms of compliance costs,”.

“I know some companies – that I wouldn’t want to name – who were looking at US alternatives but then decided to list on the London Stock Exchange.”

Ghanshyam Dass, who was appointed Nasdaq OMX’s director for South Asia in 2001, based at the Bangalore liaison office, said he resigned in March this year. He was not replaced locally.

Richard Dour, Nasdaq’s general manager for south Asia, is based outside India. The US exchange group has denied closing its liaison office in Bangalore.

Nasdaq OMX officials in New York, said last week: “Nasdaq OMX has not closed its representative office in India. In fact, Nasdaq OMX’s presence in India is increasing, with multiple representatives serving the region.”

The official added later: “We do not have, nor have we ever had, a physical office in Bangalore – it has always been individual representatives.”

However, in 2001, Nasdaq said in a statement on the company’s website that it had opened an office in Bangalore to service Indian companies. S.M. Krishna, Indian foreign minister and former chief minister of Karnataka, the south Indian state where Bangalore is situated, inaugurated Nasdaq’s liaison office in 2001.

In the eight years Nasdaq was present on the ground, no Indian company was listed on its stock exchange, according to Dealogic and the Nasdaq’s website.

Exchange experts said that there were very few incentives and many regulatory bottle necks for Indian companies to list in the US.

“Indian companies have found cheaper options in raising debt [through] instruments like foreign currency convertible bonds,” said an executive from a local Mumbai-based exchange.

Source: FT, 02.08.2009 by By James Fontanella-Khan and Varun Sood in Mumbai

Filed under: Asia, Exchanges, India, News, , , , , , , , ,

Shenzhen exchange proposes more trading ties with HK exchange with cross-listing shares

HONG KONG: Shenzhen stock exchange SZSE is proposing to increase financial ties with Hong Kong, including cross listings, connecting trading networks and allowing Hong Kong-listed red-chips to list in Shenzhen on a trial basis, Caijing magazine reported yesterday, citing Li Lin, director of Shenzhen Financial Services Office.

The market, however, is uncertain about the feasibility of the proposal. According to the plan, Hong Kong H shares will be allowed to list on the Shenzhen Stock Exchange while B shares listed in Shenzhen will be allowed to list on the Hong Kong Stock Exchange.

H shares are Hong Kong-listed mainland companies while Shenzhen’s B shares are denominated in Hong Kong dollars.

The proposal also outlines a trading network connection between Shenzhen Stock Exchange and Hong Kong Stock Exchange, which gives mainland investors direct access to overseas securities markets.

The proposal, which is now awaiting central government approval, will also allow Hong Kong’s exchange traded funds (ETF) and China depository receipt (CDR) to be traded on the Shenzhen Stock Exchange on a trial basis.

Hong Kong Monetary Authority chief executive Joseph Yam said yesterday during a visit to Beijing that, despite differences between the mainland and Hong Kong financial systems, a large number of the financial products are identical and therefore the two sides could cooperate by starting from a trial basis.

A Hong Kong Stock Exchange spokesman said yesterday that some technical problems, including the convertibility of the yuan, needed to be resolved by both sides before cross listing.

Analysts in Hong Kong, however, are uncertain about the feasibility of cross listings.

“Allowing Hong Kong’s H shares to be listed in Shenzhen is theoretically viable but practically with limitations,” said Castor Pang, chief strategist at Sun Hung Kai Financial, adding that “there will be some requirements for the eligible investors, for example, the investor will need to hold a certain amount of Hong Kong dollars.”

“Whether the H shares’ listing will influence the market in Hong Kong depends on the scale of investors,” Pang said.

The analyst also noted that the cross listing may involve some regulation changes.

Source: China Daily, 15.05.2009

Filed under: Asia, China, Exchanges, Hong Kong, News, , , , , , , , , ,

Dual listings pact to strengthen capital markets in Singapore and Norway

Singapore Exchange Limited (SGX) and the OsloBørs ASA (Oslo Børs) today inked their co-operation with the signing of Memorandum ofUnderstanding (MOU) to facilitate the process of secondary listing of companies on eachother’s exchange.

This MOU marks the first formal co-operation between the two exchanges. It also represents the first dual listing co-operation with a sector focus between Singapore and Norway.

The MOU will be signed at a ceremony in Singapore on 8 July 2009 at 5.30pm,witnessed by Mrs Lim Hwee Hua, Minister in the Prime Minister’s Office and SecondMinister for Finance and Transport, Singapore. Minister Lim will be joined by HerExcellency, Ms Janne Julsrud, Ambassador, The Royal Norwegian Embassy, Singapore;and Mr J Y Pillay, Chairman of Singapore Exchange.

The proposed co-operation aims to promote the secondary listing of companies listed oneach other’s exchange. SGX and Oslo Børs will institute a framework to enable and facilitate dual listings through mutually agreed listing rules and processes. In addition,both exchanges will set up a process for settlement and clearing of shares traded of these dual listed companies. The co-operation will begin with companies in the energy,offshore and shipping sectors which are key sectors common to both exchanges. Assuch companies expand their business activities to Norway or Singapore, the dual listing framework will allow them to diversify their shareholder base, build their profile and provide an additional fund raising venue.

Another area of co-operation is joint marketing and promotion. Both exchanges plan to commence a series of marketing seminars to profile the sectors in both regions in the coming months. SGX and Oslo Børs will enhance the co-operation framework by exploring opportunities in introducing new sectors, providing regulatory updates,monitoring and governance matters.

Minister Lim Hwee Hua said, “I congratulate SGX and Oslo Børs on the signing of this MOU. The MOU will enhance the attractiveness of the two exchanges as destinations for listings by shipping, offshore and energy companies, as well as those in other sectors.This will in turn reinforce the standing of Singapore and Norway as international maritime and financial centres. This collaboration will also boost Singapore’s efforts to position itself as a leading shipping and maritime hub in Asia.

”Mr Hsieh Fu Hua, CEO of SGX added, “We are very pleased to co-operate with the OsloBørs. This co-operation complements our Asian gateway strategy. Companies from Asia and Europe in the energy, offshore and shipping sectors will be better profiled and benefit from the larger investor pool. Investors on both our bourses will also have a greater selection of investment choices.

”Mrs Bente A Landsnes, CEO of Oslo Børs ASA said, “A co-operation between SGX and Oslo Børs supports the fact that both Singapore and Norway has long, and to a great extent, similar traditions when it comes to shipping and energy-related industries. At OsloBørs we are proud to join this exciting co-operation, and we have great expectations on behalf of the companies that choose to list their shares on both exchanges.”

Source: Bob’s guide, 09.07.2009

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

Tokyo takes time for Aim presence

Tokyo Aim, Japan’s newest exchange, is not escaping the scepticism that enveloped its London equivalent when that junior market was established nearly 15 years ago. The new bourse is a joint venture between the Tokyo and London stock exchanges and based on the LSE’s own Aim market.

The TSE hopes that it will build up a new set of companies that can eventually grow into some of Japan’s leading names, encourage more risk capital and make the Tokyo a more global financial centre through foreign company listings.

Atsushi Saito, TSE chief executive, has said the names of Japan’s top 100 companies have not changed much over the past half century, unlike in the US or Europe, and that Japan needs this “energy” to stay relevant. The LSE’s ambitions are about being part of the growth story in Asia and expanding its brand.

Sceptics question whether or not Japan needs another start-up market when it already has seven and also whether it can lure overseas companies to list on it.

“It is difficult to see what yet another market will bring to Japan if it is just another start-up exchange,” said Neil Katkov, head of Asia research at Celent, the finance research and consulting firm. “However, if they are looking for a niche to differentiate themselves, then it could be a different story.”

Tetsutaro Muraki, Tokyo Aim’s bilingual chief executive, is confident about that differentiation. He says the market is also targeting the subsidiaries of large-cap companies, overseas companies, fundraising for project finance and large unlisted companies that want to raise funds through preference shares.

It has received more than 100 inquiries, ranging from an e-mail to more serious communication, from companies both domestically and overseas.

He sees clean energy, technology and biotechnology as among the mainstays of the market.

Mr Muraki is in no rush, expecting about five listings in the first year, and he does not expect to break even for the first four or five years.

“I’d rather build a reputable exchange that grows over time, versus bringing a less qualified company to the exchange in the current market,” he said.

Tokyo Aim is restricted to professionals and overseas investors, unlike the main start-up markets, which Mr Muraki says are dominated by retail investors who can often be speculative by nature.

“The real issue is if Tokyo Aim can bring the companies that are interesting enough to investors for a long period of time,” Mr Muraki said. “It’s not a short-term type of trading that you often see on the Japanese growth markets.”

There is also a question mark over Tokyo’s presence as a global financial centre, in spite it having the second-largest stock market in the world.

Listings of foreign companies on the TSE have dwindled to a mere 15 from a peak of 127 in 1991. Now the question is how Tokyo Aim will lure in overseas companies.

It will face regional competition from the Growth Enterprise Board of Shenzhen, China, which is expected to be launched in the coming months, and other Asian bourses are unlikely to sit back and watch.

FiNETIK recommends

SZSE Chinese bourse set to lure domestic flotations,Financial Times, 23.06.2009

To be globally competitive, disclosure on Tokyo Aim can be made in English and it also allows the use of International Financial Reporting Standards to encourage overseas companies to list on the market.

It is likely to attract those companies with business operations or customers in Japan as well as being attracted by the large pool of capital in Japan, Mr Muraki said.

David Shrimpton, chairman of Tokyo Aim and from the LSE side of the link-up, says: “There is a huge amount of capital in Tokyo and that creates a really powerful listing story for Asian regional companies, which we wouldn’t be able to provide on our own.

“My personal view is that we wouldn’t have been able to start this venture on our own and I don’t think TSE would have been able to either, which is why this is a joint venture.”

James Halstead, a partner at Morrison & Foerster in London, during a visit to Tokyo meeting Japanese nominated advisors said: “People were initially sceptical about London Aim, and it will probably be a similar process for Tokyo. The correct measure of its success, however, will be where the market is in five or ten years time not five or ten months.”

Source: Financial Times,30.06.2009 by Lindsay Whipp

Filed under: Asia, Exchanges, Japan, News, , , , , , , , ,

SZSE Chinese bourse set to lure domestic flotations

With the market for initial public offerings opening up again, the scramble among bourses has started for the hundreds of Chinese companies planning to list to raise capital.

Small and medium-sized companies in China have in recent years opted to list on global exchanges. But now the fightback has started among Asian countries to grab a slice of the action – not least from China itself.

China appears ready to establish an equity market on its Shenzhen stock exchange for small and medium-sized companies, along the lines of London’s Alternative Investment Market (Aim).

Listing rules for the new market, called the Growth Enterprise Board, will take effect on July 1 but people close to the situation do not expect trading on the new board to begin for many weeks and possibly not before the national holiday on October 1.

Many Asian companies have opted to list in Europe or the US because of a perception there was greater liquidity in those markets.

However, many of the companies that listed on London’s Aim or Singapore’s junior bourse experienced poor analyst coverage and low trading volumes, which depressed the stocks.

The trend has now reversed amid a growing belief among Asian executives that they no longer need to list so far away from home to access capital.

Peter Alexander, of Z-Ben Advisors, an investment consultancy in Shanghai, says it is “just a matter of when the trigger is pulled” for the new Chinese market to be established.

Others caution that the plans are still dependent on investor reception of the resumption of IPOs on China’s main exchanges.

There are no official data detailing how many companies have plans to list in the new market but CY Huang, president of greater China investment banking for Taiwan’s Polaris Securities, estimates that there are at least 300 companies queuing up to be among the first to list on the new market.

Analysts say the new board should help plug a gap that exists in China’s capital market.

“For small and medium-cap companies, the only option now [for venture capital companies to exit an investment] is a trade sale . . . but it’s a long process,” says Cathy Yen, general manager of AsiaVest Partners, referring to the practice of selling shares/assets of a company privately to a strategic investor.

The new board will provide an IPO platform for technology and other small and medium-sized enterprises – Beijing policymakers put high priority on encouraging innovative companies.

China’s new market comes as the financial crisis is presenting a unique opportunity for other exchanges to challenge Nasdaq in the US as the destination of choice for start-ups, particularly among technology companies.

“Nasdaq has always been the first choice but that is starting not to be the case . . . now people are naturally forced to think about other boards,” says Tina Ju, managing partner of the Chinese arm of Kleiner Perkins Caufield & Byers, the US venture capital fund.

That is largely because of the difficulties of pulling off a successful public offering in current market conditions. There have only been two listings in Nasdaq so far this year compared with 11 over the same period last year, according to data from Thomson Reuters.

China’s new market comes as other exchanges in the region eye up similar opportunities.

Japan now has its own Aim market. A joint venture by the Tokyo and London stock exchanges, it received its licence this month and is targeting about five listings in its first year although the initial focus appears to be on Japanese companies.

The Taiwan stock exchange, recently revitalised by the island’s warming of relations with China, is also aggressively pursuing listings by Taiwanese companies that had moved to mainland China.

Chi Schive, Taiwan stock exchange chairman, says that, while “Shanghai and Shenzhen are respectable rivals . . . for the time being I don’t think that threat is very strong [in attracting Taiwanese companies]”.

While Japan and Taiwan are only now gearing up their efforts, other markets in Asia have made similar attempts before – with little success.

Singapore’s Aim-style exchange, known as Catalist, has failed to gain much traction since it was set up in December 2007 to replace Sesdaq, the city state’s secondary board.

Catalist has attracted few new listings since its launch, which Singapore Exchange officials blame on the global financial turmoil.

Similarly, Hong Kong’s Growth Enterprise Market (GEM) attracted some initial attention but trading volume has since fallen drastically.

For China’s new board, there is concern over how many of the companies lined up for funds “are genuine, viable long-term businesses” says Fraser Howie, China stock market expert and author of Privatising China: Inside China’s Stock Markets. “Is the competition driving standards lower?”

For many, China remains “a gamble market”. While some companies can fetch very high valuations, “the question would be how sustainable this would be and right now we just don’t know”, says Ms Yen.

Mr Huang says the biggest concern for prospective listings is that “China is the one stock market where you cannot control your [listing] time-frame” because of the government influence over market operations. “In China, the biggest risk is policy,” he adds.

Source: Financial Times, 23.06.2009 by Robin Kwong Additional Reporting by Patti Waldmeir in Shanghai, Lindsay Whipp in Tokyo, John Burton in Singapore and Sundeep Tucker and Xi Chen in Hong Kong

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BANORTE buys IXE’s Afore (Pension Fund) business and lists ADR’s as part of it’s Global Expansion startegy

BANORTE (the only remaining 100% Mexican owned bank) is continuing with it’s global expansion strategy. After listing it’s shares on the Spanish / Latin American stock exchange LATIBEX on June 9th and ADR listing in the US Pinksheet OTC market, it acquired the pension fund (Afores) portfolio of IXE bank extending it’s Afore portfolio to 3.5 million accounts. In February 2009 it signed an cooperation agreement with China Development Bank,giving both banks access to bank payment and transfer service in México, China and the USA. (Note by FiNETIK, 11.06.2009)

MEXICO CITY, June 10 (Reuters) – Banorte, one of Mexico’s top banks, said on Wednesday it has agreed to buy a pension fund business from a smaller rival and that it listed its stock on the U.S. over-the-counter market.

Banorte’s (GFNORTEO.MX: Quote, Profile, Research) Generali unit will absorb Ixe’s (IXEGFO.MX: Quote, Profile, Research) 312,489 pension clients, whose combined accounts are worth 5.45 billion pesos ($399 million).The transaction is subject to approval from Mexico’s competition agency. In Mexico, workers in the private sector save for their retirements in pension funds known as Afores.

With this acquisition Banorte will be ranked 4th in Mexico’s Afores account holding, managing a total 3.2 million pension account. (El Universal, 11.06.2009)

In a separate announcement, Banorte said it had listed its stock through pink sheets (GBOOY.PK: Quote, Profile, Research) in the U.S. over-the-counter market. Companies sometimes tap this less-regulated market before leaping into a larger exchange.

Banorte sees the over-the-counter market as a possible prelude to listing its ADRS on the New York Stock Exchange, a bank source told Reuters.

Only a handful of Mexican companies, like tycoon Carlos Slim’s telecom giants America Movil (AMX.N: Quote, Profile, Research) or Telefonos de Mexico (TMX.N: Quote, Profile, Research), trade their American Depositary Receipts on big U.S. markets with healthy liquidity.

Some Mexican corporations have withdrawn their shares from U.S. markets in recent years to avoid tighter scrutiny from U.S. securities regulators.

Source: Reuters, 10.06.2009, Banking News (ADR Depository), 11.06.2009

Filed under: Banking, Latin America, Mexico, News, Services, , , , , , , , , , , , , , ,

TOKYO AIM Approves First J-Nomads

TOKYO AIM Inc., (“TOKYO AIM”) today approved six securities firms to operate as ‘Japanese Nominated Advisers’ (J-Nomads) on the new market:

Daiwa Securities SMBC Co. Ltd.
Mitsubishi UFJ Securities Co., Ltd.
Mizuho Investors Securities Co., Ltd.
Mizuho Securities Co., Ltd.
Nikko Citigroup Limited
Nomura Securities Co., Ltd.
(alphabetical order)

Tetsutaro Muraki, President and CEO of TOKYO AIM, said: “We are delighted to announce the first group of J-NOMADs based on the formal applications we have received. Reaching this crucial milestone means that companies can now start to prepare listing applications for the new market. J-NOMADs will be an integral part of the effective operation of TOKYO AIM, and we will build this exciting new stock exchange in partnership with them. We look forward to working closely with the J-NOMADs to welcome companies from Japan and the region with strong growth potential, providing them with a venue to raise much needed capital from professional investors.”

David Shrimpton, Chairman of Tokyo AIM, said: “The J-Nomads announced today include some of Japan’s leading securities houses. We are grateful for their close involvement and support throughout the development of TOKYO AIM and believe it provides a strong indication of their confidence in the potential of the market model. This market represents a unique opportunity in the region for issuers and advisers. As the market continues to develop, we expect to see the network of international participants expand further.”

J-Nomads are corporate finance advisers approved by TOKYO AIM. Their role is integral to the TOKYO AIM regulatory model and central to preserving the reputation and integrity of the market. Any company wishing to list on TOKYO AIM must appoint a J-Nomad who will manage the admission process. The J-Nomad will also confirm the overall appropriateness and suitability of the company to list on the market. Companies are obliged to retain a J-Nomad at all times while on TOKYO AIM, and to work closely with the J-Nomad who will provide the company and its directors with advice and guidance in respect of ongoing compliance with the TOKYO AIM rules.

Source:MondoVision, 11.06.2009

Filed under: Asia, Exchanges, Japan, News, Services, , , , , , , , ,

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