Latin American Capital Markets

532 FOCUS ON CAPITALinternational investment in local markets(continued)institutional investing restrictions, 144in Latin America, I 1-13,43-44,93-94,123, 252,463Latin American reliance on, 6, 307,472regulatory reform, 20transparency of market, 60International Monetary Fund (IMF), 235,499International Organization of SecuritiesCommissions (IOSCO)cross-border trading, 54, 61demutualization of exchanges, 269-70derivatives markets, 352, 355, 372Improvements Project (IASB), 224and Internet, 76-83market integration role, 47-48principles of, 19, 146-47regional integration, 166regulation integration, 167on self-regulation, 374International Society of Securities Administrators(ISSA), 246Internetcharacteristics of, 68-70impact on Latin American markets, 16impact on securities trading, 41,46and information transparency, 115investment capabilities of, 65-66market uses of, 70-75regulation issues, 66-68,74-87SEC view of, 55-56and SMEs, 392,404-5Internet company IPOs, 8, 16Internet discussion sites (IDSs), 78, 83-84Internet service providers (ISPs), 85-86, 87intrinsic value vs. market value, 215Inversura, 455-56Investment Company Act of 1940 (U.S.), 136Investment Services Directive (ISD), 54, 172-73,174investorsad hoc contracting, 449-51bond markets, 307, 308, 314-17capital market benefits, 4competition among, 143concentration of wealth in families, 145conflict resolution with companies, 21debt vs. equity markets, 98derivatives markets, 349, 350, 357education program proposal, 149infrastructure role, 242institutional vs. individual, 41,65, 86interest in Latin America and Caribbean,59-60Internet use, 71-72investment needs, 15-16Latin American deficiency in, 13market liquidity needs, 7protection of, 75,81-83, 107-8prudent investor rule, 141-42, 148regulation as attracting, 18retail, 65-66,81-83,86,315, 316SME financing, 397STP popularity, 240See also institutional investors; shareholderprotectionIRAs (individual retirement accounts), 134Ireland and SMEs, 406ISD (Investment Services Directive), 54, 172-73,174Israeli stock exchange, 43ISSA (International Society of SecuritiesAdministrators), 246issuance methods and derivatives markets,346-47issuers, market instrumentad hoc contracting, 449-51bond markets, 323capital funding options, 3—4corporate governance, 278,443—44,455-56derivatives markets, 346-47governments as, 297,310-14,329infrastructure support for 505Internet use, 72lack of trust in, 479website liability issue, 77-78,80-81Istanbul Stock Exchange, 47Italy, institutional investing, 121, 125ITG, 50ITS (Intermarket Trading System), 183iX (international exchanges pic), 189-90Jamaica, market developments, 123,261-62Jamaica Stock Exchange, 261Japan, market environment, 121, 351, 360n35,391Copyright © by the Inter-American Development Bank. All rights reserved.For more information visit our website: www.iadb.org/pub