The Santiago Stock Exchange (Chile), the Lima Stock Market (Peru) and the Colombian Stock Market confirmed that they will integrate their trading platforms on November 22nd, creating the largest stock market in Latin America with 563 trading business.
The new Latin American Integrated Market (MILA) will be the second most important in terms of capital assets (US$ 614,000 million) and the third in terms of trading volume (US$ 57,000 million), said the Santiago Stock Exchange.
The test phase will begin on November 22nd, after which the brokers, exchanges, security depositories and regulators will be ready to operate in the new common market in early 2011, which will record daily asset flow of US$271 million.
According to analysts, the initiative’s strength comes from the growth potential of the three countries and the complementarity of their markets: the Peruvian stock market has a strong presence in minerals, the Colombian is strong in petroleum or energy and the Chilean in sectors such as trade and finance.
Details will be finalized in the weeks to come, with information to be issued on market and tax norms of each country, agreements to be signed between brokers and familiarization with the values and trading companies in each of the financial markets.
Activities which have already taken place include, among others, the design of the trade and compensation model, the main regulatory changes to allow the integration, the agreement of the regulatory bodies, necessary technological changes, and the training intermediaries of the different countries.