Latin American Capital Markets

534 FOCUS ON » APITALliquidity, market (continued)bond markets, 20, 307-8, 316,318, 323demutualization of exchanges, 274derivatives markets, 339, 341, 342, 344,349-50, 359, 366, 369economic growth, 6, 165electronic trading, 50,53government interference in economy, 97institutional investor benefits, 128-29institutional role in enhancing, 23, 102as investor requirement, 15lack of physical location, 269Latin American issues, 127,252market viability for investment, 509measurement of capitalization, 8reduced market costs, 239regional integration, 26risk control, 128,263secondary market reform, 22settlement systems, 240,248SME markets, 406turnover rate, 11,12listing on stock exchangecorporate governance, 445—48demutualization of exchanges, 277,279-81dual listing, 43, 60future of, 38,46Latin American losses, 45regional market integration, 106, 178-79,497requirements, 19self-listing by exchanges, 271SMEs, 147,395,405tailored approach to, I 10-12loans vs. bonds for corporations, 323-24. Seealso debt marketsLoayza, Norman, 164-65local capital marketsbalancing of, 103-5competition with international, 24decline in Latin American, 8,9-10, I I-13foreign market investment effects, 43, 107,128, 135,497,509globalization, 38,41hub and spokes model for settlement,196institutional investors, 127—13liquidity issue, 20local exchange challenges, 39need for stability in, 16-17, 60revitalizing of, 40social security reforms, 106See a/so international investment in localmarketsLondon Clearing House, 191-92London International Financial Futures Exchange(LIFFE), 193London Metals Exchange, 360n35London Stock Exchange (LSE)competition from Continent, 247deregulation of, 141electronic trading rules, 55listing authority, 280multiple trading systems, 496OM attempted takeover of, 287regional market integration, 163, 179,189-90,251Long,M., 104long-term credit availability, 6Lopez-de-Si lanes, Florencio, 7Lumsdaine, Robin L, 6Lundblad, Christian, 6macroeconomic environmentbond markets, 300-302, 307capital markets in Latin America, 91-102derivatives markets, 381,384institutional investing, 143institutional issues in emerging markets,107-12Latin American history, 7-17Mexican financial crisis, 304-5need for government commitment to,145-46policy issues, 112-16sequencing of capital market reforms,507-8structural constraints on capital markets,102-7Madhavan, Ananth, 497,507,508MAE (Mercado Electronico Abierto), 257Maino, Rodolfo, 100Maksimovic,Vojislav, 6Malaysia, market reforms in, 252mandatory tender offer rule, 444manipulation, market, 83-86, 346, 347, 355, 385manufacturing, SMEs in, 391Copyright © by the Inter-American Development Bank. All rights reserved.For more information visit our website: www.iadb.org/pub