Tokyo, Brazil support new market creation

Two regional exchange projects are working to bring new capital market services to investors in Myanmar and Chile.

Two regional exchange projects are working to bring new capital market services to investors in Myanmar and Chile.

In Myanmar, the Daiwa Institute of Research (DIR), part of Japanese banking group Daiwa Securities, and the Tokyo Stock Exchange (TSE) have formed a memorandum of understanding with the Central Bank of Myanmar to establish the country’s first ever securities exchange.

DIR began working in cooperation with Myanmar Economic Bank, the largest state-owned bank, to establish the Myanmar Securities Exchange Centre and develop a securities market infrastructure in 1996.

“Myanmar is a country with high prospects for capital market development and economic growth,” said Atsushi Saito, president and CEO of the TSE. “I am confident that the development of the capital market will contribute to Myanmar’s overall growth and development.”

Meanwhile, Brazil’s BM&F Bovespa and Chile’s Santiago Stock Exchange (BCS) have signed an agreement that sets out the implementation of the Chilean derivatives market at BCS. The agreement provides for the transfer of derivatives market knowledge from BM&F Bovespa to the Chilean exchange, including in equity, interest rate and FX options and futures.

The two exchanges originally formed an alliance in December 2010 and other strategic projects are also underway, including connectivity, order routing and market data projects.

The Santiago exchange is a member of the Mercada Latino Americana (MILA), the regional stock exchange integration project that links the bourses of Chile, Colombia and Peru. MILA aims to build a more integrated regional market that will attract foreign institutional investors and make it easier for Latin American markets to trade with each other.

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