Stock exchanges in Chile, Colombia and Peru have taken the
first step toward a unified platform. If successful, the
Integrated Latin American Markets (Mila) could eventually trade
sophisticated financial instruments like derivatives and
exchange-traded funds, practitioners say.
Michael Fitzgerald, chairman of the Latin American practice
group at Milbank Tweed Hadley and McCloy, said the boost in
liquidity provided by the pooled investor base is crucial to
reaching the goal of having more complex products to offer.
That is clearly the ultimate end game here, he
said. Not just to have the individual stocks traded but
to allow derivative products that would ultimately make these
markets more efficient.
During the two-month trial period that began last month,
just 46 companies are allowed to trade...