Citi Launches Retail Price Improvement in Mexico

Mexico, one of Latin America’s most advanced economies, will benefit from a new price improvement tool launched by Citi. The US-based global bank has announced the introduction of Retail Price Improvement (RPi), a platform that provides better pricing for investors. The move comes on the back of growing demand by global investors for Mexican investment products and the ongoing evolution of the domestic market.

The new platform will offer a new level of sophistication to the Mexican market. The RPi is an order facilitation mechanism platform that will provide users with full penny price improvements to private clients in Mexico.

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In addition, the portal acts as a bridge whereby institutional clients are able to interact with retail flow through RPi, thus enabling significant price improvements and the opportunity to receive better pricing on their execution between bid and offer.

Alfredo Guillen, COO for the equity markets at the Mexico Exchange spoke about the new product in a comment to the media: “Leveraging our world-class platform, we strongly believe that RPi, along with our breadth of product enhancements at the exchange level, will help improve liquidity and provide a unique opportunity for our clients.

This will also encourage foreign institutional flow into Mexico and enhance our ability to reach both local and foreign investors.”

Overseas investors, particularly US-based brokers and funds have been attracted to the vast opportunities in Mexico’s primary markets. The bourse has been constantly improving the trading environment to attract foreign players who consequently enhance liquidity.

“Bringing together retail and institutional investors through this innovative platform allows our local and international clients in Latin America to benefit from increased liquidity to this marketplace,” said Young Kang, Global Head of Algorithmic Products at Citi in the press briefing.

Mexico’s main stock exchange offers international standards and conditions for investors, it interconnects with the latest FIX standards and can accommodate high frequency traders looking for a low latency framework.

The Mexican peso has become one of the most heavily traded emerging market currency pairs due to the volatility in the domestic markets. The average daily trading volume according to the latest BIS survey shows Mexico has been promoted to one of the ten most traded FX crosses with volumes hitting $32 billion a day.