Liquidnet, a buy-side only crossing network operator, will offer trading in Mexican equities from 11 June.
Liquidnet clients will be able to trade Mexican stocks from 09.30 local Mexican time, just moments before the kick-off of the first football World Cup 2010 match between hosts South Africa and Mexico.
The firm now trades stocks in 36 markets spanning five continents, following the recent addition of Estonian and Lithuanian equities in May.
Orders matched on Liquidnet will be sent to local investment bank Interacciones Casa de Bolsa, which will then send them to Bolsa Mexicana de Valore (BMV) for execution.
According to Liquidnet’s head of international, John Barker, the Mexican stock exchange is keen to attract more liquidity from overseas.
“The Mexican government has eyed structural reforms and a strengthening of its framework for macroeconomic and financial stability as a means of increasing the economy’s growth rate and investment potential,” said Barker. “Due to its trading relationship, Mexico’s economic potential will be invariably tied to the recovery of the US economy – particularly Mexico’s sizeable manufacturing sector.”
In recent research, the Bank of Mexico estimated that the country’s economy is likely to grow between 3.2% and 4.24% in 2010/11, which combined with a surge of foreign direct investment in the country will cement BMV’s place as the second largest Latin American market after the BM&F Bovespa, Brazil’s equities and futures exchange.