Goldman Sachs is heading south of the US border to boost its presence Mexico, Latin America's second-largest economy, Bloomberg reports, citing people familiar with the matter.
The move into Mexico will allow the investment bank to buy and sell stocks locally on behalf of clients. However, it will be months before the new operation is up and running.
Goldman has been offering fixed income trading services in Mexico for many years and its expansion into equities would bring it up to speed with other US banking rivals who already offer full-services stock brokerage services in the country.
The addition of equity trading capabilities in Mexico would allow Goldman to handle more local initial public offerings (IPOs) by being able to trade the company's stock once it is issued, according to Bloomberg.
Goldman already had a license to carry out fixed-income trades in Mexico, a business it's been operating for the past few years, and plans to expand the platform into equities. A fully functional stock brokerage in Mexico could also bolster Goldman's effort to handle more initial public offerings, with the ability to provide liquidity following the IPOs.
Last month, Goldman expanded Carlos Fernandez-Aller's role to include co-leading the equities-trading group in Latin America, according to an internal announcement
Goldman has offices in São Paulo, Santiago and Buenos Aires. In Brazil the company offers both equity and fixed income trading services as well as investment banking and wealth management services. In Chile and Argentina the bank focuses on investment banking.
A spokesman for Goldman Sachs declined to comment on the report.
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