The Growth of Electronic Trading in
Latin American Bond Markets
Q2 2023
Latin American Bond Markets
Q2 2023
2 | COALITION GREENWICH
Executive Summary
Global bond markets have experienced a dramatic adoption of
electronic trading tools over the past decade, led largely by developed
markets in the U.S. and Europe. But in recent years, increased demand
for Latin American debt securities by both local and international
investors, coupled with new technology solutions, has driven the
adoption of e-trading in Brazil, Mexico and other major Latin American
markets.
In fact, participants in our recent study traded an average of 46% of
their hard currency corporate bonds electronically in the past year,
with 76% expecting to trade more electronically going forward. This
bodes well not only for the providers of electronic platforms, but for all
investors in Latin American bond markets, who will likely see liquidity,
transparency and market access improve as their markets continue to
modernize.
This research, based on responses from 45 investors and traders of
Latin American bonds in Latin America, Europe and the U.S., sheds
light on the growth of the market as a whole, where e-trading has
grown, where it is likely to grow going forward, and what investors and
dealers alike are demanding to further adopt an e-trading approach.
of investors in Latin
American bonds expect
to trade more
electronically
of investors in
Latin American bonds
see all-to-all trading
as a primary factor
when selecting an
e-trading venue
51%76%
C O N T E N TS
2 Executive Summary
3 Introduction
4 Electronic Trading in LatAm
6 An Expectation of Growth
8 All-to-All in Demand
9 Trading Venue Adoption
10 Conclusion
Kevin McPartland is the Head of Research
for Market Structure & Technology at
Coalition Greenwich.
Executive Summary
Global bond markets have experienced a dramatic adoption of
electronic trading tools over the past decade, led largely by developed
markets in the U.S. and Europe. But in recent years, increased demand
for Latin American debt securities by both local and international
investors, coupled with new technology solutions, has driven the
adoption of e-trading in Brazil, Mexico and other major Latin American
markets.
In fact, participants in our recent study traded an average of 46% of
their hard currency corporate bonds electronically in the past year,
with 76% expecting to trade more electronically going forward. This
bodes well not only for the providers of electronic platforms, but for all
investors in Latin American bond markets, who will likely see liquidity,
transparency and market access improve as their markets continue to
modernize.
This research, based on responses from 45 investors and traders of
Latin American bonds in Latin America, Europe and the U.S., sheds
light on the growth of the market as a whole, where e-trading has
grown, where it is likely to grow going forward, and what investors and
dealers alike are demanding to further adopt an e-trading approach.
of investors in Latin
American bonds expect
to trade more
electronically
of investors in
Latin American bonds
see all-to-all trading
as a primary factor
when selecting an
e-trading venue
51%76%
C O N T E N TS
2 Executive Summary
3 Introduction
4 Electronic Trading in LatAm
6 An Expectation of Growth
8 All-to-All in Demand
9 Trading Venue Adoption
10 Conclusion
Kevin McPartland is the Head of Research
for Market Structure & Technology at
Coalition Greenwich.
