Brazil dominates Latin American with the burgeoning BM&F Bovespa accounting for over 90% of all derivative trading volumes in the region. However, regional exchanges are readying their stalls to expand their derivative offering exploring niche markets, signing international agreements and investing in technology to boost volumes. Elise Coroneos looks at the development of Latin America’s regional derivatives exchanges.
The BM&F Bovespa in Brazil is far and away the premier
market for trading derivatives in Latin America. One of the
largest derivatives exchange’s in the world in
terms of volume, in 2011 it traded over 1.5bn contracts
accounting for some $112bn of notional value. These figures
dwarf the volumes of the next largest derivatives exchanges,
Rosario and MexDer, which accounted for 55m and 47m trades
respectively in 2011.
Furthermore, BM&F Bovespa is going from strength to
strength, having grown from $92bn in 2010 across 1.4bn trades
and $54bn on 918m trades in 2009, according to figures from the
Equity Research Desk, a Connecticut, US-based firm which
provides fundamental analysis capital markets including
exchange, and Fowintelligence.com.
While Brazil has been the market leader in derivatives for
some time, attracting trading flows from across the world, a
host of emerging nations across Latin America are gathering
pace in derivatives trading, The challenge for Latin
America’s other platforms is how to distinguish
themselves in order to grow the overall market or take market
share from the Brazilian giant.
This article is available to subscribers and registered users
Please log in to continue reading.
Not yet registered? Take a free trial.
If you have already taken a free trial you
have ongoing access to the analysis section of FOW.com including this story.
Log in using your details below to read.
Already have an account? |