Latin American Capital Markets

INDEX 535margin requirements, 322, 364-66Market Abitration Chamber; Brazil, 21market capitalizationAsian markets, 41-42,45Brazilian derivatives markets, 384current world status, 39depth of, 299institutional strategies, 22-25levels, 127Mexico, 42-43,256andSMEs,4IOU.S., 9-10,45West Africa, 187market indices, Euronext, 198-99market makers, 349,406market value vs. intrinsic value, 215marketing of markets, regional marketintegration, 198-99market-oriented funding strategy forgovernments, 307, 309, 321maturity transformation and capital marketbenefits, 4Meckling, William, 216media systems and regional integration, 26MEP (Electronic Payment Means), 257Mercado deValores de Buenos Aires (Merval),257Mercado Electronico Abierto (MAE), 257Mercosur shares, pension reform problems, 107mergers and acquisitionsvs. cooperative ventures, 203costs of, 200-201exchanges, 272-73,289Latin American markets, 15,252-53SME financing, 398Merval (Mercado deValores de Buenos Aires),257Metrick, Andrew, 6-7Mexican Stock Exchange, 256Mexicobond markets, 23, 304-5, 314, 322, 332corporate governance reforms, 443-44,451-53credit and money supply, 93-94currency devaluation, 13dematerialization of securities, 253depository receipts, 14-15derivatives markets, 339, 354financial stability relevance, 219fiscal crisis, 100, 113-14foreign intermediaries, 43,44infrastructure developments, 255-56institutional investing, 124-25market capitalization, 42-^43,256market reforms, 21, 126,250mortgage-backed securities, 131pension funds, 24, 144-45, 316regional market integration, 26microenterprises, 393microstates, prosperity of, 104ministry of finance, market role, 289,298-99,307,310,329minority shareholders. See shareholderprotectionmobile telephony, 72modernization of market and institutionalinvestors, 130-31Modigliani-Miller theorem, 98monetary policy, bond markets, 300, 302, 307,308-10money market instruments, 137,298, 307,309-10,327money supply, 93-94,99-100, 113moral development process, 418n3moral hazard problem, 101 -2, 314,424. See alsoethical issuesMorgan Stanley, 264mortgage-backed securities, 131, 324-25multilateral institutions, development role of, 510Multilateral Investment Program (MIF), 235-36Musalem,A.,7, 106mutual fundsbond markets, 315, 322competition among investors, 143current importance of, 119diversification, 134-35European market integration, 146in Latin America and Caribbean, 123,126market stability, 129-30inOECD, 121retirement savings plans, 134in U.S., 120, 133, 137See also institutional investorsmutual offset arrangement, CME and SIM EX,192-94mutual recognition approach to foreign marketaccess, 55, 170-77Copyright © by the Inter-American Development Bank. All rights reserved.For more information visit our website: www.iadb.org/pub