The stock markets in Colombia
It will be the third market in terms of trading volume that, in December 2010 was U.S. $ 87,000 million, after Brazil and Mexico.
This project involves the integration of technology platforms of the three stock markets in Colombia, Chile and Peru, “in which three different bags decide to collaborate and work together while maintaining separate companies with separate owners, as stated by the director of economic research at Alliance Securities, Felipe Campos.
The main objective is to develop the capital market through their integration in order to offer investors a wider range of securities and issuers largest sources of funding. Thus, with the creation of this market is expected to diversify, expand and improve the attractiveness of trading of such assets in the three countries for both domestic investors and foreigners.
But why does the integration? Integrated Latin American Market is a step in the development of the economies of each of these countries and was made possible because there are leading institutions in each market, given the increasing concern of cross investment between our countries and high rates of economic growth. Thus, the integration was made to harmonize the practices, standards and market regulations to the realities of a globalized world, mobilizing more investment into the region, increase the range of products in which to invest, expand access to capital to companies local and also generate a ‘virtuous circle’ of liquidity.
Market Characteristics
One of the most outstanding elements of this integration is the complementarity of these three markets, their organization and their shared vision, characteristics so similar in size, and the challenges that have been proposed to increase liquidity and become a source financial resources for businesses.
“In some ways, this integration is an important step towards deeper integration of these three economies to consolidate in an important economic bloc in the region,” said Carlos Gonzalez, director of economic research and Income Stock.
In addition, geographical location, their similar cultures and their language were also other factors that allowed the project to be further consolidation and strength.
Another element that stand with the integration of markets in Chile, Peru and Colombia is the importance of the firms listed in each bag, which was set up as new investment options in an international context of the market awash with resources, marked by a growing interest in emerging economies.
Most of these firms are characterized by a high number of liquid assets and high transaction volume. Also, analysts say that these new systems also allow more international investors show their interest and enter the market.
The Mila offers benefits to investors, issuers and intermediaries. The first, as these can have greater choice of financial instruments will obtain a better risk-return balance and also have the ability to create new portfolios for distribution to local customers.
For the user, is a transparent process as well, while the initial investment process is similar to that done in the local market.
Issuers will benefit as they can access a much wider market and thus, may also increase the demand for financing attracting the interest of many more investors. There will be a reduction in capital costs for businesses.
As for brokers, since this integration promotes equity markets more attractive and competitive, increase the range of products for distribution to its customers and enables the creation of new investment vehicles and can strengthen technology and standards adoption international.