LAIFEX
The Centre will house a settlement and clearing centre, called LAIFEX: the Latin American International Financial Exchange. LAIFEX will facilitate primary and secondary debt trading both regionally and globally. It is a private exchange where members can apply for seats. The custom-built IT platform for the Centre could also support a regional stock exchange. The rationale behind the Clearing (finance) and settlement centre is the USD 2.94 trillion of Latin American and Caribbean debt traded globally in 2004, accounting for 63.2% of total emerging markets debt traded worldwide that year. Currently, there is no central platform to clear and settle locally denominated trades in Latin American debt. While competition for clearing and settlement comes from the over-the-counter market between banks, a private banking centre would compete with neighbouring Caribbean centres such as the Bahamas and the Cayman Islands that have built up strength in this area over the past 25 years. However, Mr. Bucher aims to steal a march on rivals by capitalising on recent international concern about regulation of offshore financial centres. (See also; Latin American debt crisis)
Read more about this topic: Independent Financial Centre Of The Americas