The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

Biggest Latin American exchanges integrate

Latin America’s two biggest equity markets have agreed to integrate as part of a pilot scheme to bolster liquidity in the region. Brazilian and Mexican investors to gain access to each other’s markets.

Latin America’s two biggest equity markets have agreed to integrate as part of a pilot scheme to bolster liquidity in the region. The São Paulo stock exchange (Bovespa) and its Mexico City counterpart (Bolsa Mexicana de Valores – BMV) will allow investors in the two countries to buy shares in each other’s markets. It will be the first example of market integration in Latin America.

Under the scheme, which should get under way in January, Brazilian investors will be able to buy Mexican stocks from Brazilian brokers, and vice-versa. Most important, the Brazilian broker would purchase the stock first from a Mexican counterpart registered at the BMV, and vice-versa. This correspondent broker model will ensure that the local broker is not squeezed out.

“We believe the scheme will work well as we are respecting the local brokers,” says Gilberto Mifano, chief executive at the Bovespa. “We are still a mutual exchange and the brokers own it. Under this model, we are giving them a special role to play in the integration.”

Shining example

“The idea is not to split the liquidity,” he adds. “The idea is to keep liquidity in the main market of each country.”

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree