Letter from FIAB Secretary General

Author Name: 
Elvira Schamann

The Ibero-American Federation of Exchanges (FIAB) is pleased to co-organize with the World Federation of Exchanges  a Developing Markets Forum. This event will follow the XXXVI General Assembly of the FIAB; the Lima Stock Exchange will host these meetings.

FIAB members include most of the exchanges in Latin America (Buenos Aires, Rosario, Bolivia, BM&FBOVESPA, Santiago, Colombia, Costa Rica, Guayaquil, Quito, El Salvador, Mexico, Panama, Lima, Montevideo and Caracas), Spain (BME) and Portugal (Euronext Lisbon).

Since it was established, 36 years ago, the FIAB mission has fostered cooperation among its member exchanges, promoted the development of their regulated securities and derivatives markets, cooperate with national and international authorities, stimulated business among market participants in the region, and encouraged the establishment of rules and procedures ensuring solvency, competence, legitimacy and fair information disclosure to all savers investing through member exchanges.

FIAB has been an active member of the OECD Latin American Roundtable on Corporate Governance since its initial meeting, ten years ago in Sao Paulo. Aware of the importance of helping channel savings toward investment in the region’s economies, FIAB’s member exchanges have undertaken the gradual introduction of best corporate governance practices, as well as a number of useful initiatives to educate investors and the business community on the investment and financing options provided by stock markets. Corporate reorganization and demutualization of exchanges have been also one of the lines of work for some members seeking to list, to finance themselves through the market, and to achieve more visibility in the international arena.

Listing and trading in most FIAB member markets have been active. Despite the effects of the recent economic and financial crisis, total market capitalization of domestic companies increased by 150% in dollar terms since the beginning of the century.

The amount of capital raised through equity issuance increased by 157% between 2005 and 2008, despite the fall in IPO activity in the last months of the period. This reflects the dynamic markets and also that FIAB exchanges are taking an active role in facilitating the channeling of savings into capital.

Bond markets are very important for many FIAB member exchanges, and there, too, significant activity took place in the last years. With new companies entered the market, and the trading value of new bonds increased.

Some of the region’s exchanges offer investors a wide range of products, such as trusts and securitized instruments, derivatives, ETFs, mutual funds, dedicated SME segments, money markets, commercial paper, CDs, and checks.

In line with other emerging markets, Latin American FIAB member stock indexes are recovering from the crisis levels seen in the last quarter of 2008. A relevant sample of market showed an average gain of 47% in dollar terms between the closing figures of last December and July.

The timing for the Lima meeting looks appropriate. We like to focus on the post-crisis projects and market growth, post-crisis roadmap for corporate governance, derivatives, cooperation and competition for trade execution, and new products and services.

New trends in regulation at national and regional levels will be on the agenda with presentations by IOSCO and COSRA representatives, and the members of the Federations members.

Corporate Governance Principles are being adopted in the region for listed companies, including exchanges -many of them listed too. The OECD Senior Economist, Hans Christiansen, will present report on the “OECD report on the role of stock exchanges in corporate governance, July 2009”

With few exceptions, derivative markets are not yet truly developed in LatAm exchanges. Cooperation among FIAB members,  many prove to be the way into the future.

The agenda for the Forum  also looks, at cooperation and competition for the execution of trades. Every year -along with IT innovation- new platforms  for trading, lower costs or other rapid solutions challenge regulated markets.

New products and services will be the best reviewed business area; this year is no exception.

I want to thank Thomas Krantz, Peter Clifford and all the WFE staff –as well as the Lima Stock Exchange, our host -for their valuable support and cooperation with FIAB in the organization of the first joint WFE Developing Markets Forum – FIAB Annual Meeting.


Elvira Maria Schamann

Secretary General


Buenos Aires, August 2009


About Elvira Schamann

Secretary General of the Ibero-American Federation of Exchanges (FIAB).

Previously, she served as Senior Economist of the Buenos Aires Stock Exchange between 1983 and 1993. She was responsible for several studies on topics regarding macroeconomics, economic policy, strategies for capital market development and financial instruments design. She represented the Buenos Aires Stock Exchange at the Committee of Emerging Markets of the International Federation of Stock Exchanges. She has served at the Finance Secretariat’s National Budget Programming Office in Argentina. 

Schamann has taught economic policy, economic history and economic research courses at the Catholic University of Argentina (UCA); economic policy course at the University of Belgrano, and economic history and capital markets courses at the University of Buenos Aires (UBA). She has also cooperated in teaching courses on capital market specialization at the Buenos Aires Stock Exchange Foundation and the Argentine Capital Market Institute (IAMC). She is visiting professor at several national universities and specialized institutes in Argentina. She has lectured and published extensively on stock and capital markets.

She holds a graduate degree in economics from the Catholic University of Argentina (UCA) and a postgraduate degree Economics awarded by the University of Buenos Aires (UBA). Her specialization is in finance and capital markets and she is Academic Member of the Academia de Mercado de Capitales, of Argentina.