By Janice Fioravante
Clearing the Way
The easing of cross-border clearing and settlement in LatAm has gone hand in hand with regional integration. Is a centralized system the next step?
Cross-border clearing and settlement in Latin America took a
giant step forward in spring when Chile, Colombia and Peru
technologically integrated their stock exchanges to create, the
Integrated Latin American Market (MILA). Lauded for resulting
in more liquidity, slightly higher valuations and reductions in
the costs of cross-border trading, it may be the start of a
pan-Latin America market for trading, clearing and settling
securities. But today, it's only a part of the story.
When a bank like BNP Paribas (Brazil) wants to move capital
for its clients, it must contend with various currencies. "By
contrast, in the United States, dollars are universally
accepted, and in Europe, euros, but our nations must deal with
the real and pesos, as well as central bank regulations," says
Louis Bazire, CEO and regional head in Latin America.
Moves like MILA help mitigate inefficiencies.
The integration that's occurring overlooks...
Already have an account?
Subscribe now for unlimited access to all current and archive news, data and market analysis.
Take a free two-week trial now for the latest news, data and market analysis.