buttress the economies of Latin America, enhance competition, and—over the medium term—lead the way toward global integration.
Regional financial integration could not only facilitate inward investment and enable LatinAmericanmarkets to achieve minimum viable size, but it would also add a dimension of diversification, so that these economies would not rely solely on domestic or global developments to progress. In particular, regional financial integration would enable Latin American economies to reap benefits from the economic stability of other countries in the
Mexicana purchased an ownership stake in Bolsa de Lima, and in 2015 BM&F Bovespa bought into the Santiago Exchange. Through cross-ownership relationships, exchanges can explore synergies in trading platforms, settlement, and cross-listing.
Measuring the Extent of Financial Integration of Latin American Countries
The measurement of financial integration can be refined further. Simple cross-country comparisons may paint a distorted picture of the degree of integration of LatinAmericanmarkets relative to other regions, for instance, because countries that are less