Latin American Capital Markets

GLOBALIZATION.TECHNOLOGY AND REGULATION IN CAPITAL MARKETS 43Figure 2-2 | U.S. Depository Receipt Programs,1995-2000(Number of programs)Source; Bank of New York's website; for 2000, World Bank (2002).listed on the NYSE, 33 trade in the over-the-counter (OTC) market, eight in London,one on NASDAQ, and two on Amex (Calderon 2000).Telefonos de Mexico (Telmex)and GrupoTelevisa were in the top-20 list of depository programs by dollar volume.Telmex is one of the most active stocks traded on the NYSE. Almost 80 percent oftrading activity in stocks such as Telmex, Cemex, andTelevisa takes place outside Mexico.Most Mexican stocks tend to be dual listed and at least continue some trading inthe home market.This is different from the experiences of some other countries, suchas Israel, where there are 152 companies listed on foreign markets, 123 in the UnitedStates and 29 in Europe. Only 22 of these stocks are dual listed on the Tel Aviv StockExchange. Recently, the Securities Authority of Israel has started taking steps to encourageIsraeli companies to dual list in Tel Aviv.These steps include recognition of aU.S. prospectus and filings. It is also important for Latin American regulators and stockexchanges to continue to encourage dual listing so these issuers do not completelybypass the home market.The trading activity of foreigners has gone up significantly on the MexicanBolsa. As figure 2-3 shows, in 1995 foreign investors owned 27 percent of Mexicancapitalization; this increased to 43 percent by 1999 and 44 percent in the first sevenmonths of 2000. Currently, eight foreign brokers and one foreign independent fundmanager operate in Mexico (box 2-3).The significant participation of foreign investorsand financial intermediaries in the Mexican market and the issuance of American De-Copyright © by the Inter-American Development Bank. All rights reserved.For more information visit our website: www.iadb.org/pub