Mexico has confirmed that it plans to join the Mercado Integrado Latino Americano (MILA), the trading alliance launched that links a group of Latin American exchanges.
The Mexican Stock Exchange, a subsidiary of Bolsa Mexicana de Valores (BMV), has signed an agreement of intent with the exchanges of Colombia, Peru and Chile to join the alliance.
Announced in June 2010, the MILA initiative is a trading link between Chile’s Bolsa de Comercio de Santiago, Bolsa de Valores de Colombia and Peru’s Bolsa de Valores de Lima. It aims to provide domestic brokers with access across the three equity markets through a system of intermediated order routers.
Brokers in each country can send orders to participating exchanges via the network of local brokers in the other countries in the alliance. Trading and post-trade procedures will be conducted according to the rules of the exchange that lists the instrument in question.
The BMV will explore the operational and technology requirements of the partnership under the agreement signed by Luis Téllez, president of BMV Group, and representatives of the other three exchanges.
The partnership is subject to the authorisation of regulators and legal adjustments.
The goal of the agreement is to integrate BMV with MILA to increase listings and bring further technological and operational benefits to participants in the region.
The second largest stock exchange in Latin America with a total market capitalisation of over US$453.8 billion, BMV operates cash, listed derivatives and OTC markets for multiple asset classes, including equities, fixed income and exchange traded funds, as well as custody, clearing and settlement facilities and data products for the local and international financial community.