Chile and Brazil stock markets sign new integration deal

The agreement brings more investment opportunities for Chilean brokers and, following a recent deal with Colombia and Peru, opens up a total trading market worth more than US$1.7 billion.


Chile and Brazil’s main stock exchanges have signed a new agreement which gives Chilean brokers in the Santiago Commercial Exchange (BCS) trading platform more access to the Brazilian platform, BM&FBOVESPA, including scope to buy and sell Brazilian securities.

The deal, announced Dec. 13, will also see the two exchanges work together on the development of a derivatives market in Chile that will encompass options and futures on stocks, interest rates and exchange rates, said BM&FBOVESPA in a news release.

The agreement with the Brazilian stock market is expected to be operational in late 2011, subject to approval.

It comes one month after Chile signed an agreement with Peru and Colombia to form the Latin American Integrated Market, the largest stock market in Latin America with 563 trading business. The two agreements mean Chilean investors will have access to a market worth more than US$1.7 billion,  according to a report in Chilean daily newspaper El Mercurio.

In the first year, the focus of the Chile-Brazil agreement will be to “improve connectivity electronically”, said Carlos Kawall, director of international affairs at BM&FBovespa, to the Financial Times website,

Further integration could be on the way in the region. Edemir Pinto, CEO of BM&FBOVESPA, said his exchange is in talks to form an alliance with Peru and Columbia as well.