With a much bigger and faster growing population than North America, but a much smaller derivatives market, Latin America clearly has huge potential. The financial crisis has pushed volumes back a little, but as Colin Packham discovers, the region’s four established exchanges and one newcomer are as determined as ever to grow – and the route they have fixed on is attracting foreign investors and traders.
In contrast with the mature markets of the US and Europe, Latin America has only four listed derivative markets, of which by far the biggest is Brazil’s. But each exchange has ambitious plans to develop and grow, especially by attracting more international interest.
The past year has been a tough one, with headline trading volume measured by number of contracts down 18.5% for the continent as a whole. The real picture is less bad, but the financial crisis has begun...