Bourse bet: Argentina’s new exchange
Shares in BYMA, a new stock-exchange operator, begin trading in Buenos Aires today. The company is a product of the merger of several exchanges in cities across Argentina. Unlike its forerunners, BYMA—Bolsas y Mercados Argentinos—is “demutualised”: its shares will be publicly traded rather than restricted to a number of brokers. The change is overdue. The demutualisation trend began in Stockholm in 1993; big exchanges including Deutsche Börse and the London Stock Exchange soon followed. Shares in BYMA are likely to prove popular with investors, many of whom hope President Mauricio Macri’s market-friendly reforms will encourage higher trade volumes. Interest in Argentina has jumped since its return to capital markets last April. Next month MSCI is expected to re-admit Argentina into its emerging-market index. But confidence remains fragile. Last week shares fell after new corruption allegations swirled around Michel Temer, Brazil’s president. Argentines hope their northern neighbours don’t spoil the party.
May 23rd 2017
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