Mexico’s BMV chief defends MILA entry
Despite low trading on Latin America’s integrated stock exchange, there is “more opportunity” as part of Mila, says Pedro Zorrilla, head of the Bolsa Mexicana de Valores
The director general of Mexico's stock exchange has defended
the organization's move to join the integrated Latin American
market, Mila, despite low trading on the platform and his
Brazilian counterpart's decision to stay out.
"As we become more efficient at attracting investors' attention
through this market, we will have greater opportunities to
deepen its operation," Pedro Zorrilla said
in an interview in the January/February issue of
|| Pedro Zorrilla, BMV
"So, regardless of the starting point in terms of liquidity
or depth, all the markets are advancing. There's more
opportunity as part of Mila, than outside it."
Mexico's financial reform, approved by its Congress in
November, opened the way for the exchange to join Mila. The
integration will create Latin America's largest bourse by
market capitalization, at over $1tn.
Still, trading across the three exchanges has been minimal
since its inception. "The truth is that Mila hasn't traded
much," says Jorge Errázuriz, managing partner at BTG
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
Brazil's BM&FBovespa considered merging with Mila but
decided against it because of the disparity in scale.
Nonetheless, the incorporation of Mexico will broaden Mila's
scope, and encourage a greater flow of investment, says
José Antonio Martínez, chief executive of the
Santiago stock exchange.
"Mexico is the second largest market in Latin America after
Brazil, which means it will bring to Mila greater liquidity, a
larger number of participants and, of course, it will broaden
the range of financing options for our issuers, trading options
for our intermediaries, and the range of instruments for our
investors," he said. LF
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Regional Intergration: Mila - Thinking