Capilac Regional Dialogue of the public private sector: towards a new regional stock market

The Regional Dialogue on Latin American and Caribbean Capital Market (CapiLAC) Policy, of the Inter-American Development Bank, was held this past May 21st and 22nd, in Washington, DC.

The first meeting of the capital market public-private dialogue, CapiLAC, brought together Regulators, Supervisors, Fintech, Stock Exchanges and Securities Depositories from Latin America to set a joint framework to discuss the relevant topics for the region’s securities market.

Focused on the challenges of the regional securities market, this innovative meeting became an opportunity to discuss the changes to be faced by the capital market, connect with Regulators, Stock Exchanges and market infrastructures of more than 20 countries, and obtain first-hand knowledge on the technological progress in Latin American capital markets, as well as the problems faced by the latter.

INTEGRATION AGENDA

Professor Ed Altman, Director of Research in Credit and Debt Markets in the NYU Salomon Center for the Study of Financial Institutions, and father of the renowned Z-Score model to predict the risk of bankruptcy, attended the event as Keynote Speaker. Altman used this model to analyze sovereign and financial credit market, and he explored the conditions and perspectives in credit markets throughout the world.

IImportant players of the Latin American market also participated in the different panels of the Regional Dialogue on Capital Market Policy. Our Commissioner, Kevin Cowan Logan, of the Chilean Commission for the Financial Market, participated in the panel “Regional Integration and Competition for the Regional Capital Market", aimed at discussing competitiveness in the region’s capital markets, in order to look for solutions to integrate it to the foreign investment flow.

Cowan analyzed 3 important aspects in the agenda: local and regional context, progress and challenges for the capital market. In this sense, he analyzed MILA’s participation in the Chilean financial market and how demutualization of stock exchanges promotes the provision of new services and exploration of new markets, facilitating access to finance stock exchange projects. Regarding progress, he spoke about the developments in technological innovation and the 32 double taxation treaties currently in force.

This financial dialogue also addressed the markets’ progress from the perspective of the Fintech phenomenon, the securities market infrastructure and the IOSCO principles in Latin America and the Caribbean, preliminary results and progress of Regional Public Good in improving compliance with the Principles for Financial Market Infrastructures (PFMI), and the experiences in sustainability and green finance.

Fanny Tagle, Chief Counsel, and Claudio Garín, Operations and Services Manager of Depósito Central de Valores (DCV), travelled to Washington on behalf of DCV to participate in this important Regional Dialogue on Capital Market Policy. Tagle highlighted the Regulator’s contribution in the meeting, to achieve greater integration of Latin American markets as a single region, which would foster our progress and growth as suppliers of securities market infrastructure, and also the competitiveness that union can generate in the region, Garín also commented that “there is consensus on the progress achieved at MILA, that showed integration capabilities. However, the challenge we are faced with is the region’s speed in implementing changes compared to other latitudes”.

Stay informed of the developments of the securities market in www.dcv.cl and LinkedIn

DCV News