Why does Latibex exist? Learn about its history and its impact on the financial markets

Smart Trading Indicators
Feb 11, 2024
4 min read

Latibex is a stock exchange that specializes in the listing of Latin American companies in Europe. Since its creation in 1999, it has been an important tool for the financial integration of Latin America and has contributed to the economic development of the region.

It has managed to gradually gain a place and there are several people who expect a progressively greater presence in the coming years, due to the market opportunity in Latin America.

What is Latibex and how did it come about?

It is located in Madrid, Spain and specializes in listing Latin American companies. It was created in 1999 by the Madrid Stock Exchange with the aim of offering European investors a way to invest in Latin American companies without having to deal with the linguistic and cultural barriers that often make transnational investments difficult.

It was created for several reasons, including the desire to promote financial integration between Europe and Latin America, as well as the interest of Latin American companies in accessing international financial markets, which has several benefits for both parties.

Latin America entering the game in Europe

Financial integration is important for Latin America because it allows countries in the region to access international financial markets and obtain financing for economic development.

Additionally, it helps reduce economic volatility and improve financial stability in the region. However, financial integration also faces important challenges, such as the lack of adequate financial infrastructure and the lack of trust among investors because, in the end, let us remember that to overcome these challenges, greater cooperation is required between the countries of the region and greater investment in financial infrastructure.

How does Latibex work and what are its features?

Latibex works like any other stock exchange, but specializes in the listing of Latin American companies. Companies listed here must meet certain requirements, such as having a certain level of market capitalization and meeting certain accounting standards.

One of the most important features of Latibex is that all quotes are made in euros, which facilitates transnational investments. It has different operating hours than other stock exchanges, allowing European investors to invest in Latin American companies without having to deal with incompatible trading hours.

In its early years, it focused mainly on listing Brazilian and Mexican companies.

Over time it has expanded to include companies from other Latin American countries. It has introduced new tools and services to facilitate transnational investments. For example, it has introduced an automated system for processing orders and has improved its technology platform to make it easier to use.

What opportunities does Latibex offer?

It has several interesting opportunities for European investors interested in investing in Latin America, where there are many investment opportunities potentially more accessible than in Europe. It allows them to access a large and diverse market without having to deal with the linguistic and cultural barriers that often hinder transnational investments.

Furthermore, investing in Latibex allows them to diversify their portfolios and invest in leading Latin American companies with high growth potential.

It faces several major challenges, including increasing competition from other international exchanges and rising trade protectionism.

And how to buy shares in Latibex?

The functioning of Latin American markets and the evolution of listed companies may escape the control of the average European investor.

But there are many who truly believe that there are solid investment opportunities and that Latibex makes it very easy to bet on some of the most solid values on the other side of the Atlantic.

You can buy the shares directly through your broker, just as you would buy shares from the Continuous Market or the MAB (alternative market) and the settlement takes place within the same period, with the same conditions and with the same rates.

Here we leave you, organized by country, some companies listed on Latibex:

Mexico: Alfa, América Móvil, Banorte, Corporación GEO, Grupo Elektra, Sare Holding, and TV Azteca.
Brazil: Bradesco, Bradespar, Braskem, Cemig Group, Copel, Eletrobras, Gerdau Group, Petrobras, Usiminas and Vale.
Argentina: BBVA Francés and Banco Santander Río.
Peru: Volcan Mining Company.

Each company is listed on its country's market in its corresponding currency. But at the same time it does so in euros, as we told you before, through market makers that allow the necessary liquidity for each purchase and sale order.

Latibex quotes are grouped into three FTSE (Financial Times Stock Exchange) indicators:

FTSE Latibex ALL SHARE, with all Latibex quotes.
FTSE Latibex Top, those with the greatest liquidity and capitalization.
FTSE Latibex Brazil, the Brazilian companies with the greatest liquidity. In addition, there are two ETFs, one on the FTSE Latibex Top and another on the FTSE Latibex Brazil.

What do you think, trader? Did you know this option?

Stay updated with all the international movement with us from our Telegram channel.

Be sure to take a look at the latest in technology enhanced with AI: Our professional indicators are waiting for you here.

We are just a click away, see you soon!