Euroclear Opens Link to Peru in Latest Latam Move

Euroclear will cooperate with Peru’s Ministry of Economy and Finance to develop a new ‘international link’ for the country’s capital market, marking the latest move into Latin America by the Brussels-based CSD.

Once the link is completed, it will allow domestic Peruvian issuers to tap into the international liquidity pool provided by Euroclear’s global investor client base, and trade with international counterparties.

Euroclear’s ‘i-link’ will align Peru’s capital market with international standards, and provide domestic and foreign investors a single channel to access the Peruvian market. Euroclear’s i-link is expected to go live before the end of the year.

“Once the international link is in place, it will provide local issuers with an efficient and cost-effective channel through which to access a new reliable source of funding by pairing their demand with international investor liquidity,” says Stephan Pouyat, global head of Capital Markets, Euroclear.

The announcement of the link comes days after Euroclear facilitated the launch of a joint corporate debt service with Mexico’s central securities depositary (CSD), Indeval. Through the partnership with Indeval, Mexican-based companies will also be able to settled peso-denominated securities through Euroclear.

Furthermore, the link with Euroclear is the latest boost for Peru’s capital market after the Mexico Stock Exchange (BMV) carried out its first trade as a member of the Latin American Integrated Market (MILA), connecting to the bourses of Chile, Columbia and Peru for the first time in December 2014.