Boston, December 9, 2011 – A new report from Aite Group introduces the unique characteristics of Mexican capital markets and examines the country’s pension-fund system, technology infrastructure, brokerage space, and regulatory environment. The report also details efforts being undertaken by the Mexican stock exchange, Bolsa de Valores de Mexico (BMV), and derivatives exchange, MexDer, to develop a more attractive investment environment for domestic and international investors of varying investment mandates.
Mexican capital markets present a rich combination of participants, including large financial groups, brokerage houses, and banks that serve particular market segments, all operating under unique regulations that foster transparency and competition. Although trading volumes in Mexico have improved over the last three years, lower-than-desired liquidity levels remain a hindrance to many would-be domestic and international investors.
“Outside of external market performance factors, Mexican equities and derivatives volumes will be bolstered by efforts to increase market breadth and depth,” says Danielle Tierney, analyst with Aite Group and co-author of this report. “Aite Group estimates that the last two years of high frequency trading (HFT) growth in the Brazilian market has driven approximately 40% of the growth in Brazilian trading volumes. If Mexican HFT participation expands by the expected range, it should boost equities and derivatives volumes an extra 10% on top of market-driven volume growth.”
This 36-page Impact Report contains 25 figures and five tables. Clients of Aite Group’s Institutional Securities & Investments or Wealth Management services can download the report.