FiNETIK – Asia and Latin America – Market News Network

Asia and Latin America News Network focusing on Financial Markets, Energy, Environment, Commodity and Risk, Trading and Data Management

Latin America: Investors News Letter 10 May 2013

Mexico

Mexico Industry Output Falls Three Times More Than Forecast

Mexico’s industrial production fell three times more than analysts forecast in March, reinforcing expectations that the central bank will cut interest rates for the second time since 2009 later this year.

Factbox: Key facts about Mexico’s tax system

MEXICO CITY – Mexico’s new government has promised a comprehensive review of its tax system, to be announced in the second half of 2013 along with an overhaul of energy policy.

Obama tells Mexicans a ‘new Mexico’ is emerging

US-Mexico Stereotypes Must Be Broken

America Movil sees material impact from Mexico telecom reform

Brazil

Despite winning top world trade job, even Brazil looks beyond WTO

Brazil campaigned hard to get the top job at the World Trade Organization this week but behind closed doors even it acknowledges that the WTO’s main mission – pushing forward in global trade talks – looks for the moment like a lost cause.

BM&FBovespa Quarterly Earnings Trail Estimates as Costs Increase

Petronas Malaysia bolsters Brazil’s Batista with $850 million oil-field buy

Venezuela’s Maduro gets firm Brazilian backing, trade

Brazilian M&A Picks Up as Asians Seek Cheaper Oilfields

Latin America

Argentina’s Deadbeat Special: Buy a 4% Bond or Go to Jail

Panama Canal Cuts Water Use as Drought Prompts Energy Rationing

Brazil’s Odebrecht plans $20 billion spend, targets Peru as key investment
CHICAGO TRIBUNE – Brazilian conglomerate Odebrecht plans to invest $20 billion globally over the next three years, mostly in Latin America and much of it in Peru

Saipem wins $500m offshore contracts in Latin America
- Italy-based engineering services provider Saipem has received new engineering and construction (E&C) offshore contracts, worth a total value of $500m, in Latin America.

APMT prepares for high growth markets
Although global container volumes are not predicted to grow as rapidly over the next five years as they have over the past decade, high growth emerging markets will require higher levels of productivity and rely heavily on expanded inland services

Cartagena aims to be a global megaport by 2017
The Colombian Caribbean port of Cartagena is undertaking extensive infrastructure and technology upgrades in an effort to be one of the world’s 30 best megaports by 2017.

Filed under: Argentina, Brazil, Central America, Chile, Colombia, Energy & Environment, Malaysia, Mexico, News, Peru, Risk Management, Venezuela, , , , , , , , , , , , , , , , , , , ,

Derivatives: Struggling Into the New Era – Outlook 2013/14

The past few years have been challenging for the global economy but it seems as though the derivatives industry sustained more than its share of insults and injuries over the past year or so. Still reeling from the trauma of MF Global in October of 2011, exchange-traded volume went into its first nosedive in decades.

Urgent regulatory requirements added intense cost and time pressures to company staffs that were already stretched. A non-clearing FCM, Peregrine Financial, collapsed in scandal. OTC derivatives struggled with complex regulatory mandates and weak volume.

Perhaps the only positive for the year was that mergers and acquisitions at both the macro and micro level imply that innovation and creativity are still powerful industry drivers. That in turn suggests that the creative dynamism that has characterized the derivatives industry for so many years still has some innings to go.

Read the detailed report about Derivatives market outlook, challenges and issue of big deals, exchange mergers and new start ups, customer protection, Regulatory,Extraterritorial and Tax problems  and more. 

Source: WEF 25.04.2013 by Nicolas Ronalds

Filed under: Asia, Brazil, Exchanges, Risk Management, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

ICE to acquire NYSE Euronext for 8.2 billion USD – Back Ground and Analysis

The overall mix of the $8.2 billion of merger consideration being paid by ICE is approximately 67% shares and 33% cash. The transaction value of $33.12 represents a 37.7% premium over NYSE Euronext’s closing share price on Wednesday.  The transaction is expected to close in the second half of 2013, subject to regulatory approvals.

Investors see plenty of upsides in a takeover by ICE, which would create a powerhouse in cross-asset trading and reduce Nyse Euronext’s reliance on stagnating, hyper-competitive equity markets. Nyse’s share of trading on stocks listed on the Big Board has shrunk from 82% to just 21% in a fiercely competitive market.  For ICE, a tie-up with Nyse Euronext will give the energy trading bourse a leg-up into the expanding market for over-the-counter derivatives contracts and the geographical outreach to take on the Chicago Mercantile Exchange.

The two companies have already inked an agreement for Nyse Liffe to move its clearing operations to ICE Clear Europe. The implications of the deal for Nyse Liffe’s plans to move its clearing from LCH.Clearnet to a newly-constructed inhouse CCP by June 2013 have not been spelled out.

The combined company is expected to save up to $450 million through cost synergies in the second full year post closing. ICE has successfully integrated more than a dozen acquisitions in the last decade.  An earlier bid by ICE to take over Nyse Euronext in tandem with Nasdaq OMX was nixed by the US Justice Department on anti-competitive grounds. Observers see no similar objections being raised to a straight merger, with Nasdaq OMX removed from the equation. FinExtra 20.12.2012

NYSE and ICE: Not So Nice for European Equities

Given the sweeping changes hitting exchanges on the back of growing regulation and falling equity volumes in Europe, the combined entity would increase its chance of success, dominating European energy, commodity and short-dated fixed income trading, as well as OTC credit clearing; and leap-frogging Deutsche Boerse to become the world’s third-largest exchange group, with a combined market value of $15.2 billion.

However, not all divisions would benefit. Whilst a tie up with ICE would enable London-based Liffe to compete more effectively with CME Group in both trading and clearing of OTC products, for Euronext the future looks less certain. According to NYSE’s investor presentation explaining the deal, ICE “intends to explore an IPO of Euronext if market conditions allow and if European policy makers are supportive.” See full article at TABB Forum 20.12.2012.

ICE and NYSE Euronext Enter Clearing Services Agreement; ICE Clear Europe to Clear NYSE Liffe’s Derivatives Markets

ICE and NYSE Euronext agree that their wholly owned subsidiaries, ICE Clear Europe Limited and LIFFE Administration and Management have entered into a clearing services agreement pursuant to which ICE Clear Europe will provide clearing services to the London market of NYSE Liffe (“NYSE Liffe”). The clearing services agreement will allow NYSE Liffe to transition seamlessly from their current clearing arrangements. See full article at Bob´s Guide 20.12.2012

Inside ICE takeover of NYSE Euronext ( Tabb Forum Video Interview)

Exchange Consolidation: Getting Over Merger Mania

At this time last year, NYSE Euronext and Deutsche Bourse were more than midway through a year-long merger push that would have resulted in an exchange operator with an estimated $16 billion in combined market capital and a near monopoly on the European exchange-traded derivatives business. Consolidation, it seemed, was the key to competing in the global exchange landscape.

But dreams of consolidation, synergies and economies of scale were quickly dashed. The two biggest cross-border exchange deals — NYSE/DB merger and the proposed merger of the Singapore Exchange (SGX) and the Australian Securities Exchange (ASX) — were blocked by regulators, and the LSE’s attempt to buy the Toronto Stock Exchange (TMX), which also failed initially due to reluctant regulators, eventually lost out to a domestic bid from Maple Group Acquisition Corp. earlier this year. see full article at TABB Forum 12.12.2012.

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

HKEx completes LME acquisition

Hong Kong Exchanges and Clearing Limited (HKEx) and LME Holdings Limited (LME Holdings), the parent company of The London Metal Exchange Limited (LME), are pleased to announce that the acquisition of the entire issued ordinary share capital of LME Holdings by HKEx has completed today.

Completion was effected by the delivery of the relevant court orders to the Registrar of Companies for England and Wales.

The transaction brings together the leading operator of exchanges and clearing houses in Asia, with the world’s leading non-ferrous base metals trading venue.

Charles Li, Chief Executive of HKEx said, “We are delighted that, as of today, the LME is formally part of the HKEx group. We are confident that this partnership will deliver enormous benefits over time as we leverage our relationships and knowledge to build on LME’s strong global position.”

Martin Abbott, Chief Executive of the LME said, “The LME will remain the world’s foremost base metals exchange thanks to HKEx’s position in Asia, its infrastructure and resources. We begin a new chapter today but the LME is more secure than at any point in its 135-year history.”

Source: Finextra, 06.12.2012

Filed under: Exchanges, Hong Kong, Services, , , , , , , ,

Latin America: Investor News Letter 17 November 2012

Mexico

Slim Acquires Controlling Stake in Real Oviedo, El Pais Reports

Billionaire Carlos Slim agreed to invest 2 million euros ($2.5 million) to acquire a controlling stake in Spain’s soccer team Real Oviedo, newspaper El Pais reported today.

Mexico lawmaker introduces bill to legalize marijuana
Sherwin-Williams to buy Mexico’s Comex for $2.34 billion
Mexico Third-Quarter GDP Rose at Slowest Pace in Over Year
Cemex Latam Falls in Bogota After $1.14 Billion Initial Sale
Mexican banks invest domestically
Mexico: Investors’ New China
TransCanada to build, operate Mexican natural gas pipeline; will invest US$1B

 

Brazil

Top names drop off list of Thyssen Americas bidders

FRANKFURT – Several top steelmakers are sitting out ThyssenKrupp’s auction of its U.S. and Brazilian mills and there appears little interest in the latter, suggesting the German firm may fall well short of its $9 billion asking price.

Eletrobras to take over bankrupt Brazil power utility
Cuba opens sugar sector to foreign management
Microsoft’s investment in Brazil to spur Rio research boom-execs
Telecom Italia looking at GVT, other opportunities
Wuhan Steel shelves plans to build Brazil mill
A new wave of Brazilian infrastructure investment
Brazil’s Itaqui port plans $3.2 billion upgrade
Rio Olympics, World Cup at risk with royalty bill, governor warns

 

Latin America

Paving the Way  High-­Tech Financial Infrastructure Hits LatAm

Foreign market leaders such as Fidessa, Direct Edge and Navatar are challenging local providers in the race to meet the booming region’s needs. The growth in size and sophistication of LatAm capital markets has both fueled and been fueled by the implementation of high-tech financial infrastructure in the region, as the hardware and software that have  been the foundation …

 Latin American yields fall further in a warning to bond investors
Impoverished Iberians, booming Latin America eye new relations
Africa and Latin America Still Fight Vulture Funds
More LatAm ETFs Your Broker Forgot to Mention
UN asks LatAm firms to grow with social responsibility
Private Equity Lures Pensioners as Bond Yields Sink
Argentina’s Debt Restructuring Argument Could Be Very Significant For The Global Economy
Argentina’s YPF 3rd-Quarter Profit Down 51% on Year at $159 Million
Bolivia Returns to the Global Bond Market
Chile pension fund-ordered estimate lowers Endesa Latam asset value
Chilean regulator to put new limits on pension fund investments
Germany’s Solarstrom enters Latin America with 2MW in Chile
Colombia opens criminal probe into Interbolsa collapse
Colombia’s Interbolsa brokerage to be liquidated
Public-Private Partnerships in Colombia: Scaling-up Results
Paraguay, Worst LatAm Economic Result of 2012
Peru May Invest About $5.2 Billion in Water, Wastewater Projects
Aeropuertos del Peru mulling over opportunities in Brazil and Chile
Overseeing Peru’s international appeal at ProInversión

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

Latin America: Investor News Letter 19.October 2012

Mexico

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

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

Brazil

Itau Sinks as Rousseff Plan Hurts Bank Profits: Corporate Brazil

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

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

Latin America

Cencosud of Chile to Acquire Carrefour Colombia Division

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

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

Source: Various 19.10.2012

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

Brazil: Perseus Telecom acquires ETradeLab Brazilen Trading Tech Co

Perseus Telecom, a global connectivity provider, today announces the acquisition of ETradeLab, a Sao Paulo-based financial technology provider of hosting, managed connectivity, order routing and trade monitoring support. The purchase comes at a time of global demand for efficient trading systems with low-latency connectivity and local support models suited for banks, hedge funds and proprietary firms.

The joint company expects to add significant value to its services by tightly integrating them. Combining ETradeLab’s hosting solutions with Perseus’ ultra-low latency networks will provide cost effective, efficient and valuable network solutions for its customers. Anticipating and responding to innovative demands while having pricing sensitivities further led to this agreement.

“Our purchase of ETradeLab shines light on the accelerating market growth in Brazil, Peru, Chile, Panama and Colombia where capital markets require ultra-fast, reliable connections to mitigate risk and to provide worldwide reach,” states Dr. Jock Percy, Chief Executive of Perseus Telecom. “Incorporating ETradeLab into our brand was an easy decision given its expertise in the market and trade monitoring services.”

Effective immediately, Marcos Guimarães, founder of ETradeLab, is President of Perseus Telecom, Brazil. “It is a thrill to be part of Perseus Telecom’s top-tier management team. Perseus brings innovation and high performance networks at fair prices due to its strong portfolio that allow customers to increase revenues while reducing operating costs,” states Guimarães. “The LATAM region’s continuing market growth requires such building blocks for optimum time-to-market and even faster development; Perseus has the DNA to deliver them allied to ETradeLab’s local market knowledge. I’m ready for the challenge and can’t wait to start working with our customers.”

The expansion of Perseus’ Brazilian presence follows its recent Global Telecoms Business award for “Best Innovation,” related directly to building the fastest connectivity from London to BM&F BOVESPA, Brazil. Prior to the award, Perseus announced the fastest route to BM&F BOVESPA with its strategic partner GlobeNet.

“Our recent announcements and awards with regards to Brazil and South America have indicated the firm is taking a permanent and local stake in the region and we have done this with the valuable acquisition of ETradeLab,” says Percy. “We welcome Marcos Guimarães as President of Perseus do Brazil and will continue our path of commitment to providing the lowest latency networks globally whilst delivering intelligent and cost efficiencies.”

Source: LowLatency.c0m, 12.09.2012

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

SGX denies LSE Merger Speculation

The Singapore Stock Exchange has denied rumours that it is engaged in merger talks with the London Stock Exchange.

Shares in the LSE shot up in late trading yesterday as rumours swirled that the London bourse was discussing a merger with SGX.

Both the LSE and SGX had to pull out of prospective mergers with the Toronto Stock Exchange and the Australian Stock Exchange respectively last year as the deals ran aground over national interest concerns.

In a statement released today, SGX says: “SGX has not engaged in talks with the LSE on a potential merger. However, we are open to collaborations and partnerships which may benefit our shareholders and the company.”

The two exchanges last week confirmed plans for the cross-listing of each others products on an international board of blue chip stocks, and are also rumoured to have discussed co-operation in the clearing of OTC swaps transactions. Earlier this year. The two also got together last year over the prospect of making a combined bid for the London Metal Exchange, which has since fallen into the hands of Hong Kong Exchange & Clearing.

Source: Finextra, 2o.07.2012

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

Latin America: Investors Newsletter 15 June 2012

Petrobras Is Worst Big Oil Investment on Deepwater Disappointments: Energy   Petroleo Brasileiro SA is the worst investment among the world’s biggest oil companies this year as Brazil’s state-controlled producer suffers delays and cost overruns developing the largest oil finds in more than a decade.

Iusacell, Telefonica to challenge Mexico’s Slim America Movil  – Iusacell and Spain’s Telefonica said on Wednesday they have reached a deal to share their infrastructure in Mexico as they seek to mount a

FX swings may stir debt investors in Mexico, Peru  Mexico, Peru debt mkts most vulnerable to outflows in Latam. * Peru acting to curb FX, Mexico avoiding intervention.

Mexico’s Slim family (Grupo Carso) takes stake in Argentina YPF nationalized enegy company Mexican tycoon Carlos Slim and his family have taken a stake in Argentina’s recently renationalized energy company YPF in lieu of a loan guarantee, ..

Filed under: Argentina, Brazil, Energy & Environment, Latin America, Mexico, News, Risk Management, Venezuela, , , , , , , , , , , , , , , , , , , , , , ,

S&P Capital IQ aquieres QuantHouse low latency market data provider

S&P Capital IQ, a business line of The McGraw-Hill Companies (NYSE: MHP) offering global multi-asset class data solutions, market research and portfolio risk analytics to global investors, today announced it has acquired QuantHouse, an independent global provider of market data and end-to-end systematic trading solutions. This includes ultra-low-latency market data technologies, algo-trading development frameworks, proximity hosting and order routing services for hedge funds, market makers, proprietary desks and latency-sensitive sell-side firms.

“The acquisition of QuantHouse will provide our clients with access to exchange pricing globally, including securities valuations and portfolio analytics, throughout all our desktop and enterprise solutions. In addition, the extensive capabilities QuantHouse brings will enable S&P Capital IQ to build our own unique real-time monitors, derived data sets and analytics,” said Lou Eccleston, President of S&P Capital IQ and S&P Indices.  “As the foundation for our growing Enterprise Solutions business, QuantHouse will enable us to offer one integrated low-latency feed for all our data, including fundamental, fixed-income, equity and derivatives.”

“We are very excited to be a part of S&P Capital IQ,” said Pierre-Francois Filet, chairman and co-founder, QuantHouse. “Together, we can focus on developing a new generation of alpha-generation tools, low-latency transaction infrastructure and integrated low-latency data feeds to maximize offerings and strengthen S&P Capital IQ’s competitive positioning.”

This purchase, along with the recently announced acquisition of R2 Financial Technologies and the expected acquisition of CMA later this year, provides S&P Capital IQ with the components necessary to offer its clients the most comprehensive market data and risk analytics platforms in the industry.

Following the acquisition, QuantHouse’s 90 employees, based in Paris, London and New York, will become a critical component to S&P Capital IQ’s global growth strategy as part of the Enterprise Solutions unit. In the short term, its products and services will continue to be sold as standalone feeds and applications, although all S&P Capital IQ and S&P Indices content will gradually be consolidated into QuantHouse feeds.

Source: Mondovisione, 04.04.2012

Filed under: Data Vendor, Market Data, , , , ,

Nyse Euronext to buy Fixnetix stake

Nyse Euronext has agreed to acquire a 25% stake in UK trading technology outfit Fixnetix. Financial terms of the deal were not disclosed.

More than 90% of Fixnetix’s shareholders have already accepted the offer from Nyse Euronext, which also has the option to buy the rest of the business at any time in the next three years.

London-based Fixnetix provides low latency data provision, co-location, trading services and risk controls for more than 50 markets worldwide. This complements the Nyse Technologies unit, providing “a unique combined offering of core managed services delivered to markets and market participants around the world,” says a statement.

Nyse also hopes to use the deal to plug in more trading clients to its network of Global Liquidity Centres, which are based in the US, Europe, Tokyo and Toronto.

Fixnetix will continue to operate as an independent company but work “where appropriate” with Nyse technologies to offer customers integrated services. Meanwhile, both parties will seek to benefit from streamlining the process for designing and installing elements of complex global trading infrastructures.

Stanley Young, CEO, Nyse Technologies, says: “This strategic shareholder interest in Fixnetix aligns with our mission to build a global capital markets community supported by world-class technology, broad connectivity and diverse customer participation that yields greater liquidity and market innovation. With our collective experience in delivering customer-driven technology solutions that facilitate global multi-asset trading, we will create an even more compelling value proposition for market participants trading anywhere in the world.”

Nyse Euronext has quickly turned its focus to technology revenues in the wake of the failed Deutsche Börse merger. After posting record fourth quarter revenues for the Information Services and Technology Solutions segment of $127 million, the company recently revealed plans to double annual tech revenues to $1 billion by 2015.

Michael Geltzeiler, Group Executive Vice President and CFO of NYSE Euronext added, “Today’s announcement further demonstrates NYSE Euronext’s commitment to using our strong capital position to create immediate strategic value that delivers greater opportunities for the company, our diverse global customers and the broader marketplace. Acquiring this strategic interest in Fixnetix allows us to better leverage our combined technology presence to reach more customers in more locations.”

“We at Fixnetix are thrilled with the investment from NYSE Euronext as this will enable us to expand our U.S. coverage and expand into Asia,” said Hugh Hughes, Chief Executive of Fixnetix. “Fixnetix and NYSE Technologies share common philosophies of working with our customer base to increase efficiency and reduce costs.”

Deutsche Börse has taken a similar road, setting out plans this week to create a new business unit that will be responsible for all data and information technology activities as it seeks to win customers and boost revenues.

Source: FinExtra, Mondovision 17.02.2012

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

Japan: Tokyo and Osaka exchanges to merge into world’s 2nd largest exchange

Tokyo Stock Exchange Group Inc. and Osaka Securities Exchange Co. decided Tuesday to merge on Jan. 1, 2013, to create the world’s second-largest bourse, amid consolidation moves among international rivals, they said.

The total market capitalization of companies listed on the two bourses stood at $3.67 trillion, or 280 trillion yen, at the end of September, placing them only behind the New York Stock Exchange.

The two bourses will merge into a holding company, tentatively named Japan Exchange Group Inc.

TSE President Atsushi Saito will become chief executive officer of the holding company and OSE President Michio Yoneda will be its chief operating officer, they said.

“We are confident that this merger will be the cornerstone in reviving Japan’s economy,” Saito said at a joint press conference held in Tokyo.

In the run-up to the merger, privately held TSE will buy OSE shares for 480,000 yen per share through a public tender offer to acquire a 66.6 percent stake in OSE by next summer.

OSE, a publicly traded company, will be the surviving company in the merger at a ratio valuing TSE at around 1.7 times OSE.

The resulting company will be listed on the First Section of the Tokyo Stock Exchange and run four subsidiaries for stock trading, derivatives trading, clearing services and regulatory operations, according to the bourses.

The merger decision comes amid an international reconfiguration of stock exchanges. NYSE Euronext, which owns the New York Stock Exchange, has agreed to merge with Deutsche Boerse AG by the end of this year.

It also comes as the Tokyo and Osaka bourses are engaged in fierce competition with global rivals such as the bourses in China and South Korea.

“Unless we increase (market) liquidity, there will be companies that will head to overseas bourses,” Saito said, adding, “More than just preventing such moves, we intend to attract them.”

The combination of the TSE with its focus on actual shares and the OSE on derivatives will result in “great synergy” with the ability to provide a variety of financial products, cut costs for running systems and enhance global competitiveness, the two bourse operators said.

While the initial news of the bourses’ intention to merge broke in March, nine months elapsed before the two sides formalized an agreement on Tuesday.

On the length of time they required, Yoneda said, “We have a history of operating separately for 133 years, and there was also the difference of being listed and unlisted, but we’ve cleared each step one by one and now we’re at a starting point,” adding they want to speed up the process from now.

The announcement was generally well received by analysts and other key figures in Japan.

“A bourse with a good balance between cash equities and derivatives would emerge,” said Sadakazu Osaki of Nomura Research Institute, calling it a starting point to compete with other Asian and European bourses.

“Listed companies and investors may not see the merits immediately, but in the long run, it would help avoid the risk of bourses stagnating in Japan,” he said.  Meanwhile, Chief Cabinet Secretary Osamu Fujimura said the government “welcomes” the planned merger.

“It’s an important challenge for our country’s financial market to try to strengthen its competitiveness through the enhancement of its presence as an international financial center,” he said at a press conference.

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

10 Trading Trends in Latin America : SunGard

Raj Mahajan, president of SunGard’s global trading business, said: “The economy in Latin America continues to grow at an exceptional pace. Led by Brazil, which has achieved an annual average growth of 3.7% over the last ten years, (nearly twice that of the US), the boom includes Mexico, Chile, Columbia and Peru. SunGard is helping Latin American trading firms capitalize on the change and growth in that region, by providing low latency execution to help them compete in the global race for liquidity with greater transparency, efficiency and access to network connectivity.”

The ten trends SunGard has identified as shaping Latin American trading are:

1. Mexico, Chile, Columbia and Peru are quickly gaining recognition as key markets in Latin America, as their combined trading volumes edge closer to Brazilian levels.

2. Brazil’s markets are going completely electronic, increasing firms’ ability to more efficiently and more quickly access liquidity. As a result volumes have skyrocketed; a 400% increase in activity in the last decade.

3. Demand for international order flow is high as volumes are rising in emerging markets: Brazil is ranked the fourth largest emerging market according to a recent article.

4. The sell-side in Latin America is consolidating; large international players are buying local brokers to quickly increase their presence and credibility.

5. FIX connectivity is increasing: As firms receive and execute more order flow internationally, the adoption of FIX has taken hold in Latin America, helping to efficiently connect buy- and sell-side firms.

6. Trading volumes are increasing across the region and firms need real-time data and analytical tools for greater transparency into market movements. It is predicted that Brazil will see a 4.9% increase in equity market performance in 2011, according to a recent report. From 2006-2010, fund flows into Brazil have totaled $10 billion.

7. As more international investors want exposure to LatAm markets, the networks into and out of these markets becomes more important. Local firms and international players are investing in telecommunications infrastructure to ensure bandwidth and reliability for their trading networks.

8. With major exchanges allowing third party software firms direct access to exchanges, traders have more network connectivity options and can now take advantage of independent software vendors to provide their technology platforms.

9. As LatAm trading volumes skyrocket, the demand for financial information within the region is growing. In terms of financial market data and news, Latin America is second only to the Asian nations in allocating more budget for this resource.

10. LatAm trading firms are investing in low latency execution and stable customizable trading solutions, leaving legacy technologies behind for greater operating efficiency.

Danielle Tierney, junior analyst at Aite, said, “Networks are the key to sustaining growth in Latin America. Approximately 25 percent of the volume traded in Latin America is international, driving the search for new sources of liquidity and establishing connections to powerful global networks.”

Sourc: SunGard, 12.09.2011

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

Alternative Latin Investor: Premium Launch Issue Nr 11.

Alternative Latin Investor August 2011 – Issue 11 Premium Launch Issue

 News

Political Moves: brought to you by Latinnews.com

Emerging Markets

Growing M&A Activity between Asia and Latin America?

Latin American Venture Capital: Lessons Learned from China

Be careful What You Wish For- A Brazilian Cautionary Tale

Philanthropy

Cuipo: Saving the Rainforest One Meter at a Time

Nuts: Crops that Grow Well in LatAm

Entering The Brazilian Agribusiness Sector (Premium)

Infrastructure

Mezzanine Financing for LatAm’s Infrastructure

Energy

Investing in Brazilian Oil (Premium)

Art

Fine Art Funds: Taking the Soul Out of Art Investing?

Hedge Funds

MILA Integration

LatAm Fund Due Diligence: What Managers Need to Know (Premium)

Institutional Investing in LatAm: A Contrarian’s View (Premium)

Attracting US Institutional Investors to LatAm Funds (Premium)

Quant Funds in LatAm (Premium)

How HNWI in LatAm View Alternative Assets (Premium)

Forex

Spotting Opportunities in LatAm Forex Trading

Regulation

Tax Incentives: Software Development in Argentina

Ventures

Mercatrade: Inter-emerging Market Trade

QuickStart Global: Have an Office Anywhere

Real Estate

Airlift Encourages Latin America to reach for the skies

Read the content  at www.alternativelatininvestor.com/issue11.html 

To subscribe please click on the corner tabs within the above magazines or click directly to www.alternativelatininvestor.com/signup.php If your firm is interested in multiple licenses we can provide corporate discounts.

Please feel free email me directly with comments or questions regarding our current content or with suggestions for future stories. I can be reached at editor@alternativelatininvestor.com or 202-905-0378.

 http://www.alternativelatininvestor.com/registration.html

Register for free to gain access to new feature article

Filed under: Argentina, Banking, Brazil, Chile, China, Colombia, Mexico, News, Peru, Risk Management, Wealth Management, , , , , , , , , , , , , , , , , , , , , , ,

Follow

Get every new post delivered to your Inbox.

Join 83 other followers