Latin American Capital Markets

44 REENA AGGARWALFigure 2-3 | Acquisition of Mexican Securitiesby Foreign Investors, 1995-99(Foreign ownership as percentage of marketcapitalization)Source: Calderon (2000).pository Receipts (ADRs) in Mexico and Global Depository Receipts (GDRs) in foreignmarkets are evidence of the globalization of capital markets.Challenges Posed by GlobalizationThe challenges of globalization are evident in Latin America, as shown in box 2-1 Theloss of trading activity in blue chip stocks, low liquidity, and decrease in the number ofprimary offerings are raising questions about the future of Latin bourses.This concernis clear from the data presented in table 2-2.Box 2-3 1 Foreign Intermediaries Operating1 in Mexico• ABN AMRO Securities• Bankers Trust• BBV-Probursa• Chase• Deutsche Bank• Goldman Sachs• ING Barings• Merrill Lynch• Santander MexicanoCopyright © by the Inter-American Development Bank. All rights reserved.For more information visit our website: www.iadb.org/pub