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

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

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

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

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

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

Source: Finextra, 18.01.2013

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

Alternative Latin Investor: Hedge Fund Latin America Issue 19

We are proud to announce the launch of our 19th issue of Alternative Latin Investor, with a special focus on Hedge Funds within the region.

Special Issue: Hedge Funds Latin America

 LatAm’s Maturing Hedge Fund Industry  – The Need for More Managers in the Andean Region

Why LatAm Equity Funds are Looking Beyond Brazil

LatAm Hedge Fund Experts Weigh in on the Current Political and Economic Context

Hedge Fund Marketing Post-JOBS Act: Concepts to Begin the Advertising Conversation

Victor Hugo Rodriguez of LatAm Alternatives
LatAm’s Maturing Hedge Fund Industry

As they did in 2011, LatAm hedge funds are leading the world in returns in 2012. According to the November Eurekahedge Report, which tracks global returns through October, LatAm is up 8.17% in 2012, well head of Asia ex Japan, with 6.40%, and emerging markets in general, with 6.14% …

Latin American Art
2012 Auction Recap
Following inconsistent results during the 2-week stretch of mega-auctions of Impressionist/Modern and Art Post-War/Contemporary art at Sotheby’s, Christie’s and Phillips, anticipation for the Latin American art sales ran high. Evening sales featuring Latin American masterworks at both major auction houses preceded considerable day-sale offerings …

…and much more. Banking, Regulations, Political Risks,  Foreign Direct Investment, Renewable Energy, Agri Business, Wine Investment, Infrastructure, Art Investment

Please view and access Issue 19  in the following formats

Virtual Viewer    http://www.alternativelatininvestor.com/issue19-preview.htm

For more details and information please view http://www.alternativelatininvestor.com

Source: AlternativeLatinInvestor 14.12.2012

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

Latin America: Investor News Letter 21.September 2012

Mexico

Analysis: China worries spur Mexico stock market flows

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

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

Mexico, the “Forgotten” Emerging Market


Brazil

Brazil mulls raising Mexico car trade quota – sources

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

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

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

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

Brazil ethanol returns to US as biofuel rules pave way

Goldman Sachs Plans Private-Equity Comeback in Brazil


Latin America

Colombia rapidly becoming another “positive surprise” from Latinamerica

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

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

Moody’s changes Argentina rating outlook to negative from stable

Deal Analysis: Panama City Metro Line 1

Gazprom in talks with Argentina’s YPF on LNG supplies

Private equity in LatAm: less new money, more deals

Shadow banking to dominate in LatAm projects

Cuba struggles with foreign investment, growth

China Steps Up Push Into Latin America

Korean Art fair highlights Latin American art

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

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

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

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

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

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

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

Source: Mondovisione, 01.05.2012

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

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

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

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

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

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

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

Source: BobsGuide,17.04.2012

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

Brazils BM&FBOVESPA to aid Chiles Santiago SE (BCS) with Derivatives Knowledge Transfer exchange

BM&FBOVESPA and the Santiago Stock Exchange (BCS) signed an agreement today (April 12, 2012) that sets out the implementation of the Chilean derivatives market at the Santiago Stock Exchange. The agreement provides for the transfer of derivatives market knowledge from BM&FBOVESPA to the Chilean Exchange, encompassing products such as equity, interest rate and FX options and futures.

The alliance between the two exchanges began in December 2010 and other strategic projects are in the pipeline, such as connectivity and order routing and market data distribution in particular.

Source:MondoVisione, 12.04.2012

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

Fidessa on Latam Trading – Opportunities and Challenges

Electronic trading in Latin America continues to be a hot subject, with action moving beyond Brazil to other countries. Low-Latency.comspoke to Fidessa’s head of business development for the region, Alice Botis, to get an update, and a handle on low-latency initiatives in the marketplace.

Q: Can you start by some scene setting – where is the electronic trading action in the Latam market?

A: Electronic trading is already well established in ;Brazil, Mexico and Chile, and with the introduction of MILA, both Colombia and Peru have also adopted FIX order routing. Colombia has not yet opened their market to allow FIX connectivity to third-party network providers, but they are looking forward to making that available in 2012-2013.

In Peru, the decision to make FIX connectivity available to third-party network providers is still pending regulatory approval, but if approved, they expect implementation to move swiftly.

Buy-sides in Latin America have been slow to adopt electronic order routing, but where they have, they often still pick up the phone to have a conversation with the trader for local colour. But, by having electronic connectivity, the sell-side is able to enter the order into their OMS and send unsolicited notices of execution back to the client which minimises manual errors.

The move toward the adoption of electronic order routing in Latin America is significantly driven by the desire to attract international order flow and to make trading in Latin America as seamless as trading in other mature markets.

Q: Where does Fidessa have operations, and connectivity? What’s the latest news on that front?

A: Fidessa recently opened an office in Sao Paulo to serve our clients in Latin America, including Mexico. The office was opened to provide on-the-ground technical and production support to our local clients. Our plan is to continue building out the appropriate infrastructure to offer data centre hosting, hosted services such as a local ticker plant and a local network hub to facilitate North, South and local order routing and execution. We will also be hiring local staff to ensure support in both Spanish and Portuguese.

We currently have 21 receiving brokers in Latin America concentrated in Brazil, Mexico, Chile and Colombia, and we are in discussions with several others in the region to join the Fidessa network.

Q: What are the infrastructure challenges of working in Latam?

A: The greatest infrastructure challenges are being seen by international players looking to gain access to the local markets. There are many challenges, such as hardware and telecom acquisition, so they seek the expertise of local brokers, custodians and technology vendors to help them put the appropriate infrastructure in place to start trading.

It is important to understand the workflow the client is looking to facilitate to assure a balance of cost and speed. As demand in the region continues to increase, things will only get easier, and we can hope, with scale, less expensive.

Q: Focusing on Brazil, it looks like competition is heating up there with Bats and Direct Edge planning to take on BM&FBOVESPA. What opportunities does this open up for Fidessa?

A: With the introduction of fragmentation comes the increased responsibility for brokers to provide best execution to their clients. In some markets, the exchanges themselves will be mandated to provide aggregated quote data and routing to the best price, but even in these markets, brokers will compete for business by aggregating the data feeds and connecting directly to each market themselves to more quickly identify and access best price and volume.

Whether you are an international player who has experienced fragmentation in other markets or a local player who has never had to overcome this challenge before, there will be a significant investment in time and money to accommodate the data feed, connectivity and smart order routing requirements. Working with experienced vendors in other markets like Fidessa, who has worked with Bats and Direct Edge, can provide a time to market and cost advantage to implementing the required technology and infrastructure.

Q: Are Latam markets looking to invest in low-latency technologies and offerings in a similar way that markets in North America and Europe have? Is this ‘me too’ or are they learning from others’ experience and doing things differently?

A: Brazil, Mexico and Chile have all made significant investments in their exchange technology to provide lower latency, higher throughput execution for their participants, setting the stage for algorithmic and HFT participation in their market. Brazil is leveraging the experience and expertise of the CME by partnering with them for the implementation of their new multi asset trading engine. Chile has extended their proprietary technology along with partnerships with technology providers like IBM for their low-latency messaging, and Mexico ;is enhancing their proprietary technology to provide significant improvements to latency and throughput.

Brazil has seen the highest rate of clients seeking to set up local infrastructure to facilitate low-latency market access for algorithmic and HFT participation. But, there is a delicate balance that firms are trying to find between investment in low-latency technology and return on investment on that technology purchase. That said, the amount of high frequency trading participation in the region as a whole is still growing, so as volume continues to increase, so might the returns on those technology investments.

Q: What about regulatory oversight for all of these developments? Is there a MiFID in the works for Latam?

A: There is not currently a regional regulation such as MiFID or Regulation NMS for best execution in place because Latin America is not yet fragmented. However, each country does have its own regulatory rules in place to oversee the various different types of order flow and assure quality execution for retail transactions.

In Chile, for example, there are three exchanges that are not electronically linked. The brokers are not obligated to provide best price. As long as they demonstrate they are trading on the primary exchange, and provide the best price along with the executed price on the confirmation, they are in compliance with the local rules.

As fragmentation is undoubtedly coming to LatAm, I do believe you will see local regulators augment their current rules to protect their market participants.

Q: What do you expect to be some other specific developments in the coming year in Latam, for the markets and for Fidessa?

A: As far as market changes that might affect the region, the potential addition of Mexico to the Integrated Latin American Market (MILA) will certainly affect the development of the region. Mexico has already signed a letter of intent to join MILA, and if they do, it will further drive connectivity in the region and the need for trading systems to manage higher volumes and provide multi-regional orders and execution capabilities.

The region is very dynamic with growth, change and investment, and we are excited to be working with partners in the region who are driving the extension of our trading services to accommodate their growth and success.

Source: Low Latenency, 08.02.2012

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

Alternative Latin Investor: Latam Family Office January 2012 Issue Nr 13

The Alternative Latin Investor Issue #13 is focusing on family offices.  With some great content this issue, from maverick economist Doug Casey, estimates on the effect of climate change in the region, and of course with premium focus looking at the needs, attitudes and opinions of family offices in LatAm. Below some of the other content of issue #13.

 Renewable Energy 

  • Electric Energy Storage in Latin America: Smart Grid Technologies.

Funds 

  • Top Ten LatAm Hedge Funds
  • Mutual Funds in Argentina
  • Latin America fund assets to exceed $3 trillion by 2020

Emerging Markets

  • 2012 Should Be Better: A wasted year for LatAm Stock Markets
  • Investors Beware of Brazilian FIDCs (ABS) Backed by Consumer Credit

Agribusiness

  • Gauging the Effects of Climate Change on Brazilian Agri Output
  • 2011 Agribusiness Round Up

Forex

  • SPOT-trade’s Facundo Molina on Forex and CDFs
  • Mitigating Currency Risk when investing in LatAm

Private Equity 

  • A Primer on Colombian Taxes for the PE Investor

Art

  • Meso-American Remix
  • LatAm auction recap: Sotheby’s and Christie’s

Issue Focus: LatAm Family Business

 Please view and access Issue 13 in the following formats

Virtual Viewer
http://www.alternativelatininvestor.com/issue13.html
PDF
http://www.alternativelatininvestor.com/issue13.pdf 

For more details and information please view http://www.alternativelatininvestor.com

Source: AlternativeLatinInvestor 23.12.2012

Filed under: Argentina, Brazil, Central America, Chile, Colombia, Energy & Environment, Events, Latin America, Mexico, News, Peru, Services, Wealth Management, , , , , , , , , , , , , , , , , , , , , , , , , ,

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

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

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

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

About BMV Group

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

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

About MILA

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

Source: Business wire, 05.12.2011

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

Mexican Exchange Readies New Trading Platform, Forms New Relationships

Sell-Side Technology | 18 Nov 2011 | 20:07

Mexican exchange operator Bolsa Mexicana de Valores (BMV) plans to launch a new, as yet unnamed matching engine, which will deliver 100-microsecond message latency compared to the 25-millisecond latency of its current equities platform, and will offer the same performance as Singapore Exchange’s (SGX’s) platform. The engine will also support more than 200,000 messages per second, up from the 9,000 messages per second of its legacy trading system.

 BMV CEO Luis Téllez Kuenzler and other exchange officials spoke about these upgrades and the state of the Mexican economy at the second annual Connect & Trade Mexico event this week in New York.

Téllez Kuenzler says the improvements should attract attention from the high-frequency trading (HFT) community, which already makes up 20 percent of trading volume in the country even though HFT in Mexico began only two-and-a-half years ago.

“By successfully improving upon our operative rules to better comply with international market standards, BMV is now better equipped to provide global investors with more efficient trading and connectivity to Mexico,” Téllez Kuenzler adds.

Other functionalities will go live in January, says Jorge Alegria, senior vice president of BMV and CEO of the Mercado Mexicano de Derivados (MexDer) derivatives exchange, which is a BMV affiliate. One of these functionalities is a non-displayed midpoint order book for institutional investors looking to trade large blocks anonymously with reduced execution risk. Old rules regarding crossing trades will also be replaced; all stocks, global market equity securities and debt instruments will be crossed within the best bid/ask spread with no intervention, according to Alegria.

In August, MexDer and the Chicago Mercantile Exchange (CME) established a south-to-north order-routing agreement, which was followed by a north-to-south agreement. It gives Mexican investors access to CME Group’s benchmark derivatives contracts, including interest rates, foreign currencies, equity indexes, energy, metals and agricultural commodities. And it gives CME customers access to MexDer benchmark products, including Mexican Stock Exchange Index futures, bond futures and peso/dollar futures contracts.

The Mexican exchanges are also considering an invitation from the Mercado Integrado Latinoamericano (MILA)—a trading network among the exchanges of Chile, Peru, and Colombia—to join its network. In the meantime, BMV has signed an order-routing agreement with Chile and is working on another with Brazil’s BM&FBovespa exchange.

“The flow between Mexico and Brazil can be huge,” says Téllez Kuenzler.

Source: WatersTechnologis, 18.11.2011

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

Latin America Fund and Investment News Aug-Oct 2011 – Alternative Latin Investor

American Business Practices in Brazil: A Contrarian’s View

Premium Article OCT, 2011 U.S. companies have been investing heavily in Brazilian private equity in recent years, capitalizing on the across-the-board growth in the country’s small, mid and large cap companies. But according to Malcolm McLelland, an American-born, Brazil-based consultant and…Read Full Article

Latin American Hedge Funds

Premium Article OCT, 2011 Hedge funds have become one of the most vital asset classes in LatAm in recent years, and LatAm hedge funds some of the most successful in the global industry, as local investors aim to diversify their strategies and exposure in the region while foreign investors vie for b…Read Full Article

Brazil

Premium Article OCT, 2011 Given its robust growth in recent years and massive wealth compared to its neighbors, Brazil has attracted the lion’s share of global investment in LatAm, with foreign investors allocating especially aggressively to equity and government bonds. Brazilian investors, …Read Full Article

MILA Integrated Latin American Market

OCT, 2011 On May 30 of this year, the Integrated Latin American Market (Mercado Integrado Latinoamericano, or MILA) was launched, combining the stock markets of Colombia, Chile and Peru into a single cross-trading platform. A key component of a regional trend toward integration, MILA has been wide…Read Full Article

Brazilian Pension Funds

Premium Article OCT, 2011 Alternative asset managers around the globe are vying for the attention of Brazil’s swelling pension funds. As of early 2011, these funds had a total of $342 billion under management and had grown an average of 14% per year for the last five years, one of the highest…Read Full Article

Meta-Trends in LatAm Investment

Premium Article OCT, 2011 The progress of alternative asset investment in LatAm is following two basic meta-trends, that is, large-scale and long-term patterns that transcend specific products, firms or opportunities. These meta-trends are, first, the increasing interpenetration of managers from th…Read Full Article

High Net Worth Individuals in LatAm

Premium Article AUGUST, 2011 The wealth and quantity of high net worth individuals (HNWI) in LatAm has grown in recent years. According to the Capgemini/Merrill Lynch World Wealth Report 2011, the number of LatAm HNWI grew by 6.2% in 2010, and its total HNWI wealth by 9.2%. There are about a half…Read Full Article

Quant Funds

Premium Article AUGUST, 2011 After taking a battering during the 2008 credit crunch and struggling in the early stages of recovery, quantitative (or ‘quant’) funds are trying to reassert themselves in the industry. And a small, but growing, number are looking to start afresh in the …Read Full Article

LatAm Funds

Premium Article AUGUST, 2011 U.S. Institutional investors looking to increase their exposure to emerging markets have been turning increasingly to a handful of LATAM countries, where they see a swelling pool of experienced fund managers working within a context of political stability and economic g…Read Full Article

Institutional Investing in LatAm

Premium Article AUGUST, 2011 For most institutional investors, there is an uncertainty about LatAm´s quality and future – and a certainty about its checkered past – that gives them pause as they investigate young managers in the region. Most of these investors want to see a stron…Read Full Article

Source:Alternative Latin Investor, October 2011

 

Filed under: Brazil, Chile, Colombia, Exchanges, Latin America, Library, Mexico, News, Peru, Risk Management, Services, Wealth Management, , , , , , , , , , , , , , , , ,

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.

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

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

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

Andres Araya Falcone

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

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

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

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

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

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

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

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

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

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

How important is low latency trading to your marketplace?

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

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

Have regulations recently opened up Chiles market to foreign investment?

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

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

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

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

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

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

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

London LSE and Chilean BCS stock exchanges are discussing process of integration

Finance Minister Felipe Larraín advanced efforts to integrate the Chilean and London stock exchanges during a recent visit to the United Kingdom. A delegation of government officials and business leaders accompanied the minister on his trip to promote foreign investment in Chile.

After a ceremony on Wednesday in which Larraín opened the London Stock Exchange (LSE) at its headquarters in Paternoster Square, Xavier Rolet, CEO of the LSE Group, spoke about Chile-London relations.

“We are delighted to welcome Felipe Larraín and the Chilean delegation to the London Stock Exchange today,” Rolet said. “We have the expertise, depth of capital and liquidity to help support the next century of Chilean growth.”

Six Chilean companies are currently listed on the LSE, representing over US$30 billion. Two of the companies, Banco de Chile and Antofagasta PLC (both of the Luksic Group), are listed on the Main Market.

Four other Chilean companies—Herencia Resources, Mariana Resources, Geopark Holdings and Metminco—are listed on the Alternative Investment Market (AIM), which is the LSE’s market for smaller, growing companies.

The LSE represents 60% of European transactions and about 30% of European stocks. According to Rolet, the plan to integrate LSE with Chile’s stock exchange (IPSA) is a long-term project, as it requires technical and regulatory changes.

If the LSE and IPSA merge, Chile could become a gateway for Peru and Colombia to trade on the London market through the Latin American Integrated Market (MILA).

MILA was formed on May 30 when Chile, Peru and Colombia combined their stock markets to compete with larger Latin markets like Mexico and Brazil.

Source: Santiago  Times, 02.7.2011

Note by FiNETIK

Chilean Stock Exchange Bolsa de Comercio de Santiago (BCS) where as IPSA referese to BCS top 40 index Índice de Precios Selectivo de Acciones (IPSA)

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

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