Citi has launched a retail price improvement service in Mexico to help institutional investors interact with retail flow.
The retail price improvement service will enable a full penny price improvement for retail investors in Mexico. Citi said it will also help institutional investors to improve their own pricing by enabling them to interact with this significant amount of additional flow.
Mani Singh, Head of International Execution Sales at Citi, said: “We estimate that around 25% of flow in Mexico is retail, which is much larger than what you tend to see in the Developed markets.”
Citi claims the service is a first for Latin American markets and will help both local investors and foreign institutions, who are showing increasing appetite for investments in Mexico.
It also hopes to tackle once of the major concerns of foreign investors, which is interacting with the high level of high-frequency trading on the Mexico Exchange.
Young Kang, Global Head of Algorithmic Products at Citi, explains: "Quite a large proportion of trading in Mexico comes from high-frequency traders and institutional investors are looking for ways to avoid this kind of flow and interact with natural retail flow."
Mexico Exchange said the service will help improve liquidity on its platform and bolster the Mexican economy.