No MILA role for Bovespa ahead, says Pinto
Disparate trading volumes mean Brazil’s stock exchange is unlikely to join MILA, the integrated Latin American stock market, says BM&FBovespa’s CEO
The disparity in trading volumes and regulations means the
BM&FBovespa is unlikely to join MILA, the integrated Latin
American market, the head of Brazil’s stock
A lack of trading volume on the MILA platform —
which is an amalgamation of the Chilean, Colombian, and
Peruvian stock exchanges — has held back incorporation
of the BM&FBovespa, Edemir Pinto, the chief executive,
"Mila is two years old, and still there is not much volume,"
he told LatinFinance. "But the design is a good one,
and an important one."
Some 85% of Latin America’s derivatives trading
takes place on the BM&FBovespa, Pinto told investors last
"Intercontinental operations are very difficult, very
complicated," he told the audience, citing failed merger
attempts between such institutions in Singapore and Australia,
and London and Toronto.
BM&FBovespa’s management had considered
joining MILA, but decided not to, he said. Regulatory
differences were another barrier to entry, he said.
Nonetheless, the Brazilian stock market is working with its
regional counterparts. It has provided technical assistance to
the Chilean stock exchange to develop a derivatives market,
MILA had a stock market capitalization of $660 million at
the end of October, and total volume traded was $5.7 billion
that month. In contrast, the BM&FBovespa has averaged a
market capitalization this year of 2.4 trillion reais ($1.1
billion). Daily trading averaged 6.6 billion reais in October.