REGIONAL e-FX PERSPECTIVE
unfortunately, illicit money from drug trafficking and organised crime,” says Financial Software Systems’ Leigh Ann Wolfe director of new business development Latin America and the Caribbean. “To combat some of the negative aspects of FX trading, authorities in Latin America are increasingly erecting obstacles to the growth of the FX market. To the extent that the retail FX trading market grows in Latin America, sophisticated Latin American investors and traders will want all of the features that investors around the world expect and demand in FX trading platforms.”
Experience at Citi seems to suggest that the market interest also lies elsewhere as well as in pure forex. “We do see some interest in retail trading in Brazil,” explains Al Saeed, “but if you ask the retail providers where the interest has been over the last 12-18 months they will tell you it has been more in metals than in non-deliverables.”
Te market in platforms and technology shows plenty of potential according to Ernesto Semedo of 360T, “Retail FX has been growing at a very good rate, although in some countries the marketing and sale of these systems are prohibited by law. Nonetheless, interest continues to grow on the part of individuals with a strong interest from Brazil.”
In summary, Luis Simões Pereira Head of Retail Sales in Latin America for Saxo Bank says, “Retail FX has been developing steadily, although facing some challenges. Te multitude of Ponzi schemes across the region left some scars on the investors and regulation is in some cases complex or unclear. Across the board investors are looking for information and educational material and as they feel more confident, we are seeing growing rates of adoption. Te European crisis has also played a role as there is a growing interest in the development of events in the continent and a growing will to speculate on the European currency(ies). In any event, active traders have pretty much the same set of interests as their European counterparts – pricing, margins and speed of execution are paramount.”
Luis Simões Pereira
“Retail FX has been developing steadily, although facing some challenges. Te multitude of Ponzi schemes across the region left some scars on the investors and regulation is in some cases complex or unclear.”
Regulation, regulation, regulation
For all the complexities and complications of trading foreign exchange in LATAM, market participants highlight regulation as the biggest single barrier and opportunity to development of e-trading.
Tat regulation is coming from both local markets and developed ones is good news and bad news as Saxo’s Luis Simões Pereira explains, “In several Latin American countries, we have observed a growing openness in the regulatory framework towards the FX market. Either through specific regulation or tacit approval, in a number of countries, it has become common to trade FX as any other asset class. However, the crisis hitting the developed countries
66 | july 2012 e-FOREX
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