Latin American Capital Markets

INDEX 523costs, financial services (continued)regional market integration, 160, 161, 162,166, 199-201,506-7SMEs, 8, 399See also transaction costscosts of capital and liquidity benefits, 128Council of Ministers, Europe, 171, 177Council of Securities Regulators of the Americas(COSRA)human capital development, 476,481institutional investors, 147market integration role, 47-^8oversight principles, 378-79support for IOSCO principles, 19counterparty transactionsCCR 190-94, 197-98,243,256,364common vs. individual, 357and credit risk, 365-66derivatives markets, 340, 348CQS (Consolidated Quotation System), 181-82,183credible contract commitments, 203creditenhancement of, 325indigenous savings, 474and money supply, 93-94,99-100SMEs, 397credit bureaus, 19credit ratings in bond markets, 308, 326-27credit risk, 311, 342, 343, 365-66, 367-68creditworthiness and custodians of derivatives,363Crest, 197-98cross-border tradingclearing and settlement, 240,253costs of, 160,251demutualization of exchanges, 282-83drivers for; 506European market integration, 163, 172information sharing, 373and Internet, 75,76jurisdiction problems, 48Latin American development, 40, 146,495linkage establishment, 243^44listing arrangements, 179,497self-regulation, 377shareholder protection, 56standards development, 61,213,249technology, 53,54-56, 131See a/so regional market integrationcrossover institutional investors, 13cross-subsidization, demutualization ofexchanges, 271CSA (Canadian Securities Administrators), 168CTA (Consolidated Tape Association), 181 -82cultural issuesdisciplined accounting standards, 234futures market cooperation, 194human capital development, 464,466-67,467,472-74,480,482instability of Latin American, 426Latin American market integration, 205NOREX success, 186SME role, 393See also ethical issuescurrency issuesArgentine fiscal crisis, 96bond markets, 302, 308CLS, 248foreign exchange risk, 301, 302institutional investors, 24Mexican financial crisis, 304-5custodians, clearing, 243,250,264, 320, 363custody of securities, 23,243, 255CVM (Commissao deValores Mobiliarios), 20,385DaRin,M., 114Danish derivatives exchange, 286-87day trading and Internet, 81 -83,87DCV (Deposito Central deValores) (Chile), 258dealers. See broker-dealersdebt, publicArgentine fiscal crisis, 95-97balanced use of, 91-92decline in, 7, 12excessive, 95external debt levels, 301See also deficits, government budgetdebt marketscorporate governance, 4and derivatives markets, 338, 340, 343^4vs. equity markets, 93,97-102, 103, 106,114, 127Latin American environment, 305,312,325SME financing, 396-98, 399^00See also bond marketsDECEVAL (Deposito Centralizado deValores deColombia), 259Copyright © by the Inter-American Development Bank. All rights reserved.For more information visit our website: www.iadb.org/pub