Regional Intergration: Mila: Thinking big

Jan 1, 2014

To its detractors, Mila is, at best, a marketing tool for the region’s political leaders. But with Mexico’s inclusion this year set to nearly double the size of the integrated bourse, hopes are growing that trading volume will finally pick up. By Katie Llanos-Small

Ask market participants about the much-vaunted integrated stock exchange between Chile, Colombia and Peru — the Mercado Integrado Latinoamericano, or Mila — and it’s hard not to elicit a strong reaction

“It’s failed to have an impact,” says a London-based equity manager. “Without better trading automation, it’s little use,” adds a banker in Santiago.

There is no escaping the numbers: the market cap of the three exchanges might rival Brazil’s Bovespa, Latin America’s largest exchange, but trading between them is pitiful. “The truth is that Mila hasn’t traded much,” says Jorge Errázuriz, managing partner at BTG Pactual Chile.

In October, less than $6 million of stock was sold across the platform. Buying and selling on Santiago’s stock exchange alone was nearly three times the deal flow on Mila’s infrastructure....

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