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The Mercados Integrados Latinoamericanos (MILA) could play a significant role in long-term unification of securities lending across the region, a user guide by EquiLend and the Risk Management Association (RMA) revealed.
In Latin America, participants are looking to new solutions as a way of making cross-border transactions more feasible, EquiLend and RMA highlighted in the guide.
Proponents see MILA playing a potentially significant role in expanding access to blockchain and other new technologies across the network, increasing capital inventories in the process.
Another way to move the needle, it noted, is to have streamlined agreements that allow regional brokers to borrow from one another as needed.
According to the guide, ongoing integration efforts have laid the groundwork for regulatory harmonisation of equities trading and custody throughout the MILA network.
Meanwhile, with foreign investment integral to regional liquidity, part of the discussion centres on developing more investor-friendly standards.
This includes strategies for expanding securities borrowing and lending with Latin America.
MILA was launched in 2011 to address the scale, expense and liquidity that have often hampered Latin America countries.
In order to address the scale, MILA connected the central securities depositories and financial exchanges of Chile, Peru, Colombia, and in 2014, Mexico.
MILA has been responsible for boosting capitalisation through increased trading volumes across its member nations.
Today, MILA exchanges lead the region in total listed securities, rank second in combined market capitalisation and third in overall volume, the user guide cited.
