Investing and buying stocks in Latin America has traditionally been considered a risky business. In the south, Argentina’s infamous currency problems at the turn of the century blighted investment in emerging markets and in Mexico to the north, 13,000 murders in just nine months of last year point to social unrest. In spite of this, other statistics paint a different picture; one of growing investor confidence. Brazil’s central bank has reported surging net month dollar inflows during 2011 including the second highest on record in July at $15.83bn. The region’s rich commodity base has brought investment. Furthermore, a young population—a quarter of the people in Brazil, Colombia and Mexico are aged under 15—will drive home demand. Ruth Hughes Liley reports on the
key trends impacting on equities trading.

Australia’s equity trading market has been through two form-changing years and last year began with ASX, the national stock exchange, in merger talks with the Singapore Stock Exchange (SGX). Although that particular marriage failed before any vows could be taken, 2011 ended with the introduction of direct competition for ASX with the launch of Chi-X Australia. It marked the end of Australia’s monopolistic trading structure. The SGX deal was blocked by an Australian government running scared of change. Nonetheless, the exchange faced up to the inevitable even when the country’s politicians couldn’t bear to and ASX accelerated improvements to its platforms in preparation for the new trading landscape. Ruth Hughes Liley reports on the current status of a market in transition.

The financial crisis has created new business opportunities for European fund administrators, the green eye-shade bean counters who crank out valuations and account balances for everything from UCITS-qualified mutual funds to hedge funds and private equity vehicles. Lower market values have clipped asset managers’ revenue, forcing them to re-examine costs and focus on their highest value-added skills in research, trading and portfolio management. They are hiring fund administrators to take over middle office tasks, including risk management reporting and compliance, which used to be handled in-house but were never the managers’ core competency. It’s a win for both sides: the managers get an essential service at lower cost thanks to the administrators’ economies of scale, while the administrators book incremental revenue at higher margins than their core business, reports Neil O'Hara.

In a Face to Face Q&A with Francesco Squillacioti, senior managing director in State Street's Securities Finance division and the Asia-Pacific regional business director. The Asian securities lending business has enjoyed several years of dynamic growth, accelerating more rapidly in the last couple of years. Squillacioti highlights the continuing and general air of optimism on both sides of the securities lending business in the region, involving activities within the actual lending markets as well as activities among the beneficial owners in the Asia-Pacific.

A tremendously diverse, highly dynamic and fiercely competitive region, Asia is no place for the faint of heart. Those seeking to secure a piece of the region’s nascent securities-lending business must come armed with a thorough understanding of the regulatory nuances within each locale, and getting up to speed can be a considerable task. It is no surprise, then, that demand continues to outweigh supply in the region. David Simons reports.

Navistar International (NAV), the truck manufacturer that traces its origins to Cyrus McCormick’s invention of the mechanical reaper in 1831, long ago faded from prominence among America’s industrial giants and nearly disappeared entirely.  But billionaire investor Carl Icahn believes there is value in NAV and has become a major shareholder. Will Icahn's investment propel Navistar to a brighter future, or steer the firm into the arms of another company? Art Detman reports.