Technology Trends in Mexico’s Capital Markets

by Anshuman Jaswal, PhD, July 23, 2014
Industry Trends
Latin America

Abstract

The Mexican market has benefited from both regulatory reform and greater electronification and automation in the last few years. There is greater willingness to streamline existing IT platforms and acquire new technology, often from leading global vendors.

In the report Technology Trends in Mexico’s Capital Markets, Celent looks at the growth of the Mexican capital markets. Mexico is among the leading economies in the Latin American region, with a high level of integration with neighboring economies such as the US. But it is still developing and has some way to go in terms of both trading volumes and sophistication before it can be considered on par with the leading capital markets in the world. The market has a dichotomy: most of the leading sell side firms are foreign owned, and most of the firms in the second and third tiers are domestic.

There has been regulatory emphasis on improvement of market infrastructure in Mexico to make the domestic market more competitive and more attractive to foreign financial institutions.  But there are several structural issues in the economy, and there is a need for further rationalization of IT capabilities.

“Mexico has a more flexible regulatory regime than regional counterparts such as Brazil,” says Dr. Anshuman Jaswal, Senior Analyst with Celent’s Securities & Investments Group and author of the report. “But from the point of view of global firms, there is greater competition from their international counterparts in a small to midsize global market.”

This report begins with a look at regulatory requirements for both financial institutions and vendors in Mexico. This is followed by a discussion of some of the legal and cultural issues involved. We then consider the evolution of the capital market IT infrastructure in the last few years. The opportunity for foreign vendors in front, middle, and back office applications is evaluated, along with a discussion of the factors involved in vendor selection and the pricing models employed locally. Finally, we look at the issues of functionality, deployment, and implementation of IT platforms offered by foreign and domestic vendors.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
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Table of Contents

Executive Summary

1

Introduction

3

Market Overview

5

Conclusion

13

 

Suggestions for FIs

13

 

Suggestions for Vendors

13

Leveraging Celent’s Expertise

14

 

Support for Financial Institutions

14

 

Support for Vendors

14

Related Celent Research

15

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