Fidessa group plc (LSE:FDSA) the leading provider of trading systems, market data and connectivity to buy-sides and sell-sides globally, has today announced the publication of a new white paper on the increasingly critical role that technology plays in reinforcing wholesale markets and attracting foreign investors to Latin America. The paper, entitled The Development of Trading Technology for Latin America, stresses that as the pool of brokers becomes broader and deeper, more sophisticated technology will be required to compete.
Along with increasing political stability in LATAM, higher levels of consumer affluence and international interest in the potential value in its natural resources have secured LATAMâs emergence into the mature market trading world. Although the LATAM markets have their own particular features, specific regulatory issues and cultural practices, the implementation of technology used will almost certainly follow the same trajectories seen in the more mature markets of North America, Europe and Asia. This paper provides its readers with valuable insight into the future of this regionâs forthcoming trading market as forecasted by Alice Botis, Head of Business Development for Latin America, Fidessa.
Botis says of LATAM: âAn expanding middle class with attendant pension funds combined with a positive population growth trajectory, has encouraged the establishment of an investment management community and the consequent growth in both buy-side and sell-side institutions. From 2000 to 2010, for example, access to financial services in Mexico increased from 25 to 59 percent, according to a survey conducted by the Ministry of Finance and Public Credit (SHCP).â
She points out that the political and economic structures of the LATAM region are now considered stable and safe, as are their capital markets. The Development of Trading Technology for Latin America reinforces Fidessaâs contention that systems for resilient order managementâwhich can handle inbound/outbound international order routing, target and hit appropriate liquidity, offer comprehensive algos and basket functionality upstream of the EMS, and aid compliance - will continue to penetrate further into the marketplace.
Botis adds: âVendors are now extending functionality to meet regional market requirements, incorporating local market data into their trading platforms, building local market gateways and providing tools enjoyed by counterparts in other regions. Experienced technology providers are working with firms in LATAM to develop systems to meet their needs, to facilitate electronic trading, and to ensure that technology plays its part in the development of capital markets. Costly and time-consuming in-house development of proprietary systems is no longer necessary.â
The paper asserts that the question is no longer whether a firm should invest in technology but whether it can afford not to. The Development of Trading Technology for Latin America will also be available through the Fidessa website.