With a ceremony at the balcony of the trading floor, Wednesday January 21, 2015, the Mexican Stock Exchange celebrated its newest addition to the Latin American Integrated Market (MILA), regional market integration initiative launched in May 2011 in the participating stock exchanges of Chile, Colombia, Peru and Mexico, as well as their respective institutes securities depositories.

The stock markets of Colombia and Peru recently incorporated the settlement system through global custodians to their operations.  This mechanism, which allows foreign investors to maintain their instruments held in custody with one single institution, has been operational in Chile since last December and was developed in a joint effort by the Securities Markets of the Latin American Integrated Markets, MILA, and their respective Securities Depositories.

Given its recent integration to MILA, Mexico is assessing whether to incorporate this new custody scheme, intended for the purpose of consolidating an integrated platform in terms of infrastructure, generating more value added to participants and users of this regional market and promoting joint development.

Since the beginning of the Latin American Integrated Market in May 2011, the Depositories of the member countries – Chile, Peru, Colombia and, recently, Mexico – have provided the custody service to foreign investors through grouped accounts (omnibus model) in the country where the operations take place and through mirror accounts which reflect the securities in the investor’s country of origin. The scheme, which will remain functional, has been particularly beneficial for investors who do not have a global custodian.

The incorporation of global custodians reinforces MILA’s strategic plan with a view to 2016 in order to promote the growth of the stock market of each of its members.

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