SunGard Adds Peru Data to Network

SunGard is adding market data from Peruvian stock exchange Bolsa de Valores de Lima to its SunGard Global Network, to round out its coverage of data from the exchanges in the Integrated Latin American Market (MILA) exchange consortium, in response to growing demand for access to Latin American markets.

The vendor already provides access to data and order routing for the stock exchanges of Colombia and Chile over SGN, as well as newest consortium member Bolsa Mexicana de Valores, and can now distribute data from the Peruvian exchange—initially only to MILA trading members, though the vendor will also make the data available via other SunGard applications based on customer requests, says Lionel Sancenot, executive vice president of SunGard’s capital markets business.

Clients will be able to use SunGard’s network to access the exchange’s real-time and historical market data to support long–short hedge fund strategies, brokers, and asset managers looking to exploit regional growth by launching exchange-traded funds tracking Latin American markets.

While the Peruvian exchange remains relatively small compared to the trading volumes US firms are accustomed to, the vendor has been seeing more US-based customers increasing the volumes they trade across South America, Sancenot says. “The depth of the market is not huge yet, but there is an appetite and a lot of growth,” he adds.

Commodity Connection
In addition, the high value of Peru’s commodities and resources means the exchange is well-positioned for growth, Sancenot says. “[For example], you could have a Canadian commodities company looking to buy a commodities company in Lima, and then you can start to have a risk arbitrage opportunity, and for that, you need to have the data,” he says.

By providing access to the exchange on SGN, the vendor lowers the barrier to entry for trading in Peru, Sancenot adds, providing firms with relatively low-cost access to BVL data as interest in cross-border trading grows, while the exchange benefits from the broader exposure to the vendor’s existing global client base.