ISLA Americas: Looking to the future in Latin America
17 October 2025 US
Image: diki/stock.adobe.com
Welcoming attendees back for day two of the ISLA Americas conference, the 鈥楤lueprints for LATAM: Cracking Open the Next Markets鈥� panel explored the key constraints facing the Latin America (LatAm) region, as well as future initiatives and the market鈥檚 potential.
Discussing deterrents to entry into the Brazilian market from the perspective of foreign lenders, B3, the compulsory central counterparty (CCP), and the requirement for collateral to be domiciled, were highlighted. Another barrier for entry into the market is the lack of visibility caused by the CCP.
Brazil makes up half of the financial market in LatAm, noted one speaker, who highlighted the current effort to open up market liquidity to international players. The panellists discussed the new model for lending and borrowing which is being developed, and that is expected to increase supply in a demand-led market, as well as encourage the involvement of new participants.
However, much work is required from the market before a new model can be employed. The panel pinpointed two major undertakings, which are: engaging in conversations with the Brazilian central bank and Brazilian 网爆吃瓜 Commission to allow a securities lending model in which the principal risk is outside the CCP. The second is designing the model in partnership with ISLA Americas to ensure it works for all participants.
Panellists agreed that implementing the new model will be key for the success when it comes to Brazil鈥檚 move to T+1 in 2028, as it will create larger market liquidity, which is required by early 2027.
Commenting on the model, panellists seemed enthusiastic, with one noting: 鈥淲e have the right people working on this, that鈥檚 what gets me excited.鈥�
In Brazil, B3 is going through some major technological initiatives such as changes to the central depository system and plans to develop its electronic trading platform for local players. One speaker noted that T+1 will be a huge challenge, and that B3 will need to provide more automation to handle the move.
Panellists also discussed the Mexican market, detailing its core challenges. The largest issue facing participants is market fragmentation, which has occurred from the use of two CCP systems, creating complications for trading.
In addition, barriers to market for Mexico include a lack of international standards and harmonisation, as well as limited cross-channel integration between international and local market initiatives.
To overcome these barriers, Mexico is engaging with regulators, such as Banco de Mexico, to develop new legislation, promote international standards, and encourage more flexible trading options.
To conclude, the audience was asked if they believe LatAm could become the next high-growth region for securities finance revenues. The poll revealed that 42.9 per cent of voters thought 鈥榶es鈥�, while the other 57.1 per cent answered 鈥榩ossibly鈥�, if structural improvements were made.
Discussing deterrents to entry into the Brazilian market from the perspective of foreign lenders, B3, the compulsory central counterparty (CCP), and the requirement for collateral to be domiciled, were highlighted. Another barrier for entry into the market is the lack of visibility caused by the CCP.
Brazil makes up half of the financial market in LatAm, noted one speaker, who highlighted the current effort to open up market liquidity to international players. The panellists discussed the new model for lending and borrowing which is being developed, and that is expected to increase supply in a demand-led market, as well as encourage the involvement of new participants.
However, much work is required from the market before a new model can be employed. The panel pinpointed two major undertakings, which are: engaging in conversations with the Brazilian central bank and Brazilian 网爆吃瓜 Commission to allow a securities lending model in which the principal risk is outside the CCP. The second is designing the model in partnership with ISLA Americas to ensure it works for all participants.
Panellists agreed that implementing the new model will be key for the success when it comes to Brazil鈥檚 move to T+1 in 2028, as it will create larger market liquidity, which is required by early 2027.
Commenting on the model, panellists seemed enthusiastic, with one noting: 鈥淲e have the right people working on this, that鈥檚 what gets me excited.鈥�
In Brazil, B3 is going through some major technological initiatives such as changes to the central depository system and plans to develop its electronic trading platform for local players. One speaker noted that T+1 will be a huge challenge, and that B3 will need to provide more automation to handle the move.
Panellists also discussed the Mexican market, detailing its core challenges. The largest issue facing participants is market fragmentation, which has occurred from the use of two CCP systems, creating complications for trading.
In addition, barriers to market for Mexico include a lack of international standards and harmonisation, as well as limited cross-channel integration between international and local market initiatives.
To overcome these barriers, Mexico is engaging with regulators, such as Banco de Mexico, to develop new legislation, promote international standards, and encourage more flexible trading options.
To conclude, the audience was asked if they believe LatAm could become the next high-growth region for securities finance revenues. The poll revealed that 42.9 per cent of voters thought 鈥榶es鈥�, while the other 57.1 per cent answered 鈥榩ossibly鈥�, if structural improvements were made.
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