Mexican Capital Markets: Technology Drivers and Trends

by Anshuman Jaswal, PhD, January 21, 2015
Industry Trends
Latin America

Abstract

Mexico is one of the leading Latin American capital markets. Its relatively large economy, and its proximity to the US and Canadian markets give it a unique position in the region. It has benefited from regular investment by some of the leading global financial institutions.   

The market is tightly regulated, and foreign financial institutions and vendors have to keep a close eye on regulatory developments and changes. Regulatory emphasis on risk management means domestic midsize and small brokerages and buy side firms are looking for more sophisticated trading platforms and risk management systems.

In the report Mexican Capital Markets: Technology Drivers and Trends, Celent evaluates the recent development of the Mexican capital markets. The Mexican capital markets are moving toward a more electronified and centralized trading and post-trade environment. Similarly, reforms in the pension fund market and OTC derivatives markets are going to encourage adoption of more advanced technology.

The overall market for IT spending will grow from US$869 million in 2013 to US$1.1 billion in 2017 at a CAGR of 6.7%. The factors for growth include the higher use of cross-asset platforms, greater integration of Mexican markets within the Americas, rationalization of legacy systems, a greater role for SaaS deployment, and big data and analytics.

“Mexico is one of the important capital markets in the region,” says Dr. Anshuman Jaswal, a senior analyst with Celent’s Securities & Investments practice and author of the report. “It has benefited from a regulatory emphasis on improvement of market infrastructure, for the purpose of making it both more competitive and more attractive to foreign financial institutions and vendors.”

This is the third of a three-report series. The first provided an introduction to some of the leading capital markets, namely, Brazil, Mexico, Colombia, and Chile, and compared them across parameters such as market and socioeconomic indicators, and size distribution of local brokerage and asset management firms. In this report, Celent looks at the Mexican market and provides an overview of the leading sell side and buy side players, market trends and characteristics, important market drivers, and IT spending estimates. The second report undertakes a similar study for the Brazilian market.

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 operating unit 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
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

Introduction

2

Market Overview

3

 

Financial Institutions in Mexico

3

 

Market Trends and Characteristics

4

 

Market Drivers

5

 

IT Spending for Capital Markets

6

Conclusion

8

Leveraging Celent’s Expertise

9

 

Support for Financial Institutions

9

 

Support for Vendors

9

Related Celent Research

10

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