Peru, Colombia Nix Bolsa Merger

The Colombian and Peruvian stock exchanges have canceled plans to merge operations, indicating they need to focus first on improving the trading integration for Mercado Integrado Latinamericano (MILA). MILA, which began in May, created a cross-trading platform for the Chilean, Colombian and Peruvian bolsas, though it has been burdened initially with cross-border tax and regulatory problems. The project was launched amid much fanfare and expectations that it would create the second largest stock exchange in the region, behind Brazil’s Bovespa. But the Colombian and Peruvian exchanges postponed the merger in June after leftist candidate Ollanta Humala clinched the presidency and members of the incoming administration voiced doubts about such plans. The two say discussions could be picked up again in the future.