The South American derivatives landscape is dominated by Brazilian exchange BM&F Bovespa, which has been the real success story amongst the continents exchanges in recent years. In particular BM&F’s relationship with the CME stands as a blueprint for exchanges in emerging markets looking to form alliances with more developed ones. But while BM&F may dominate Latin America in terms of liquidity, there is much going on in the rest of Latin America that is worthy of note.
Outside of Brazil
Mercado Mexicano de Derivados (MexDer), a subsidiary of the
Bolsa Mexicana de Valores (BMV) Group in Mexico, is the largest
derivatives exchange. In 2011 46.8m were traded on the exchange
and while that was a 4m increase on 2010 it is nowhere near the
229m traded that were conducted on the exchange in 2007, before
the global financial crisis hit investor confidence.
"I think that Mexico is probably the next big thing in Latin
America but the problem for the BMV is that
they’ve already been there. They were the next big
thing a couple of years ago and then they were overtaken by
BM&F and the big question is: can they become the next big
thing again?" asks Philippe Carre, head of global connectivity
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