UPDATE 1-Mexico stock exchange to be linked to LatAm bourses in 2014
(Adds background, comments; changes dateline, previous MEXICO CITY)
By Gabriel Stargardter
NUEVO VALLARTA, Mexico, June 19 (Reuters) - Mexico's stock exchange said on Thursday it will be connected to bourses in Chile, Colombia and Peru by year-end through the Latin American Integrated Market, or MILA, nearly doubling the size of the bloc.
MILA was formed in 2011 to boost market liquidity within the Pacific Alliance trade grouping, and the tie-up aims to create more business for the financial markets in the region.
"The Pacific Alliance will have in MILA's bourses an effective instrument of economic integration," said Luis Tellez, head of Mexico's bourse.
At the end of last year, the combined valued of the four countries' stock exchanges was $1.1 trillion, Tellez said.
According to the World Federation of Exchanges, Mexico's stock market is nearly as big as those of the three Andean countries combined.
MILA works, for example, by allowing a Colombian investor to buy shares in a Peruvian-listed firm using a broker in Bogota.
Countries maintain regulatory authority over their respective trading, but the ability to make the cross-border purchases increases volumes, a key component to attracting future stock listings by companies inside and outside of the region. Continuación...