MAtba, Rofex to seek advisor to explore integration: MATba president

Two of Argentina's exchanges that offer electronic trading of agricultural goods are to appoint an advisor to explore further integration.

Mercado a Termino de Buenos Aires (MATba), Argentina's grain futures exchange, and the Rosario Futures Exchange (Rofex) last year signed an agreement that allows Rofex´ members to trade MATba´s soybean contracts and MATba´s member’s to trade Rofex´s US dollar futures.

However, MATba’s president told Agricensus the companies are taking integration further by appointing an advisor that will, among other things, determine the value of each entity towards a potential merger.

“Regarding the integration with Rofex, we will determine the precise format of the integration at the end of the process. We have not yet reached any agreement with the advisor who will evaluate the feasibility of the initiative,” MATba’s president Marcos Hermansson said.

Hermansson added that shareholders will have the final word regarding the continuity of the integration.

Local press reports had suggested that Byma, one of MATba’s key shareholders was not in favour of the integration with the Rofex exchange.

“Byma is an important shareholder. They, as well as the rest of the shareholders can support or not this integration at the end of the process.”

Commenting on the potential impact of a future integration, the executive said that an integration between MATba and Rofex would have a very positive impact in the market.

“Due to this potential benefit, we decided to move forward and continue analysing integration options. Two integrated future markets working together for our shareholders, clients and agents would result in benefits for all these parties as well as for the capital market in general,” the executive added.

Founded in 1907, the MATba was the first market to be established in Latin America. Over 80 members currently trade futures and options contracts on agricultural commodities using the open outcry system or MATba’s electronic platform.

MATba’s shareholders include multinational firms, banks, investment funds, institutions, agents, cooperatives, grain brokers and individuals.