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Trading Stories on the Trading Floor

What a day!  I think one could safely travel around Buenos Aires for weeks without running out of things to do, places to visit, shows to see and restaurants to try.  I got up early today and took a brief tour of the Recoleta Cemetary, the final resting place for the very rich and well-connected dead, including Eva Peron.  The giant maze of masoleums and crypts also holds the remains of many important generals, ex-presidents, and military figures.  In the evening, the conceirge at my hotel helped me score last minute tickets to an opera in the grand, historic Teatro Colon.  Titled Lucia di Lammermoor, based on Sir Walter Scott's The Bride of Lammermore, the beautiful opera was set in Shakeperian England, sung in Italian, and had Spanish subtitles projected on a small screen above the stage! 

But the big order of business this afternoon was a private tour of the Buenos Aires Stock Exchange (Bolsar), which was hard to arrange but well worth the struggle.

I was met by my very friendly guide, Mr. Sacco, who eagerly ushered me around ornate conference rooms and a large impressive meeting room used by the President and top members of the exchange for monthly gatherings.  Down a winding, marble staircase I was led down to the "old" trading floor - a vast room with very tallceilings and large columns, now used just to pass through, or to grab a seat for an informal meeting.  In fact, this "old" trading floor is even open for public concerts on Friday nights, boasting a rotation of classical and jazz bands.

The "new" trading floor was surprisingly quiet, as about 95% of the trading in Buenos Aires is done electronically.  Nothing like the frantic screaming in the pits of New York and Chicago.  Conventional electronic tickers surround the room, and just behind the floor are rows upon rows of seats - some reserved for exchange members, some for brokers, and a line purchased by individual  investors.

Adjacent to the floor is a smoke-filled room occupied by traders taking a break to play a game of chess!  One note here: as I was led around the exchange, I did not see a single woman, other than one secretary.  I was given some strange, very curious stares by the traders and exchange members I passed, and assume it is not customary at all for women to become members or even walk around the exchange.

As exciting as it was to see the exchange itself, the real higlight of the visit was my meeting with Senor Osvaldo Mignini, General Operations Manager of the exchange.  Though he spoke with a thick accent, for the most part I could understand his candid talk about the state of the markets very clearly.  When discussing the complete economic collapse in 2002, Sr. Mignini became momentarily quiet and discernably troubled as he briefly discussed the desparation that ensued.  Mr. Mignini spoke confidently about the Argentine market potential over the next 5-10 years, naming banking and utilities as two of the sectors he felt were most undervalued and most likely to profit in the coming years.  He also seemed confident that Argentina has finally learned its lesson in the perils of borrowing too much abroad, issuing too many bonds, and noted that he felt Argentine bonds to be a relatively safe investment.

Armed with business cards, pamphets, a "Fact Book", and huge weekly listing, description and quarterly number report of all the 150+ companies traded on the Bolsar, I left the ornate exchange with the names of several companies to look into, and a warm feeling of welcome from my Argentine hosts.  Tomorrow I will interview one of the largest natural gas transporation companies here in Argentina.

Hasta Luego!
Erin

June 22, 2005 in Erin Beale | Permalink