Create a model of market integration
The integration process started from July 26, 2007, when the CSE proposed to the LSE to create a model of market integration and two years later, in March, these bags extended their invitation to the Santiago Stock Exchange. Thus, in September of that year (2009), the three squares and securities deposits an agreement of intent to integration.
On 20 October the same year the regulators of the three countries signed a memorandum of understanding to advance the integration process and the June 8, 2010 exchanges and securities depositories signed an agreement on the first phase of integration stock.
However, it was only until 9 November last year that Mila was created through the alliance signed by each of the presidents of these stock markets: Juan Pablo Cordoba, the Bolsa de Valores de Colombia, Jose Antonio Martinez , the Santiago Stock Exchange, and Bolsa de Valores de Lima, Roberto Hoyle.
After that, this integrated market started on 22 November 2010, the period known as ‘dry run’, which kicked off a trial stage in the stock market, where brokers entities linked to the three markets held the first transactions under the continuous observation of the regulators and with the participation of security deposits. In just two weeks of testing the Mila linked to 75% of the Colombian Exchange Commission.
However, in mid-December last year, the Lima Stock Exchange suspended their participation until they could resolve legal issues that affect their domestic tax law, a situation that was resolved until early 2011, and generated a few weeks more Later the Project Steering Committee for the Integration of Stock Markets in Colombia, Chile and Peru decided to extend the trial period until March, which was scheduled for late January.
Initially, the main challenge was the Mila was the unification of accounting, as the Generally Accepted Accounting Principles (GAAP) in Colombia, are very different from those applicable in Chile and Peru. But this was not an impediment to the continuity of the process and regulatory issues were resolved.
Commission regarding the issue of technology and training also thought other obstacles, but little by little with the accompaniment of the relevant oversight bodies and the proper disclosure and exposure of the characteristics of the three markets, it was possible to overcome what was considered a potential impediment.
Thus, in April this year, a statement issued by the Executive Committee reported that this market operations would begin at the end of the fifth month of 2011, following the successful outcome “of the two cycles of comprehensive functional tests carried bags and security deposits of the three countries, which met all technical and operational requirements demanded by the market. “Then, before the entry into operation of Mila, was set on 25 April would be the beginning of a phase of readiness , trial run and pre-production, “which lasted four weeks and in which it is hoped that with the active participation of all the brokers of the three countries.”
With a strong and consolidated process, expectations of behavior that will conduct on Monday Integrated Latin American Market are very optimistic.