Liquidnet, the premier institutional investment community, announced that its Members will be able to trade Mexican equities using its platform from Friday 11 June 2010. Liquidnet is one of the first multilateral trading facilities (MTFs)/alternative trading systems (ATSs) to offer electronic trading of Mexican equities1. From the end of June, Liquidnet will offer access to 36 equity markets across five continents, plus London- and Luxembourg-listed GDRs.
John Barker, Head of International for Liquidnet, said, "Latin America has become an increasingly important market for investors and we're pleased to be one of the first alternative trading venues to enable access to Mexican equities. The trading landscape in the region is changing rapidly as the market looks to attract more liquidity from outside the region."
"The Mexican Government has eyed structural reforms and a strengthening of its framework for macroeconomic and financial stability as a means of increasing the economy's growth rate and investment potential. Due to its trading relationship, Mexico's economic potential will be invariably tied to the recovery of the US economy—particularly Mexico's sizeable manufacturing sector," Barker added.
The Bank of Mexico estimates that the Mexican economy will grow between 3.2% and 4.2% in 2010 and 20112. In addition, foreign direct investment is expected to surge in 2010 as the country recovers from the 2009 recession3. Bolsa Mexicana de Valores is the second largest exchange in Latin America after Brazil with a market capitalisation of US$386bn4.
Commenting on Liquidnet's continued global expansion, Seth Merrin, founder and CEO of Liquidnet, said, "Our community of buy-side institutions in Europe, the US, Canada and Asia-Pacific is looking to trade in large volumes securely and efficiently across the world, particularly in frontier and emerging markets, which are widely cited as the growth opportunities as we emerge from the market downturn. During the last month, Liquidnet has expanded into new equity markets in both the Americas (Mexico) and EMEA (Poland, Lithuania, and Estonia)."
"By the end of June, Liquidnet will offer our growing global community the opportunity to trade in 36 markets worldwide, with plans to increase our coverage of other markets in Europe, Latin America and Asia later this year," Merrin added5.
Trading of Mexican equities through Liquidnet will be available from 8.30am this Friday, Mexico City local time (9.30am NYC, 2.30pm London), which is 30 minutes prior to the first World Cup match between Mexico and South Africa.