Integrating Latin American Stock Markets: The Mercado Integrado Latinoamericano (MILA): Innovations and Perspectives
American University Business Law Review, Volume 3, 2014, Issue 2
28 Pages Posted: 6 Jul 2014
Date Written: July 3, 2014
This Article reviews the main aspects of the Latin American Integrated Market (Mercado lntegrado Latinoamericano) ("MILA"), its principal characteristics, its structure, and the prospects for the development of the financial markets of MILA's signatory countries. The MILA initiative creates a genuine investment opportunity for U.S. investors to take advantage of the benefits generated by an integrated stock market in South America. As this Article will explain further, U.S. investors may benefit from larger economies of scale, more uniform and harmonized information, creation of new financial products, early notification of regulatory changes, multiple market exposure, and the singular position of trading in three financial systems at once. Accordingly, U.S. investors may find in MILA a "one-way street" for investing in securities of the three (and potentially four if Mexico were to join MILA) jurisdictions whose economies are sound, and who are jointly taking enormous strides toward strengthening, harmonizing, and expanding their securities markets.
Keywords: Stock Markets; Latin America; Stock Exchanges; Financial Globalization
Suggested Citation: Suggested Citation