BarCap launches Mexico bank and broker-dealer operations

Barclays Capital (BarCap) has started trading in local markets in Mexico, with the launch of a combined bank and broker-dealer, Grupo Financiero Barclays Mexico. Barclays has invested $100 million in the group so far.

The investment bank will focus on trading and sales of risk management instruments including currency, interest rate derivatives and structured notes. The broker-dealer, which has a limited-scope licence, will concentrate on structuring transactions and will issue corporate debt, mortgage-backed securities and structured products.

“Barclays sees two main opportunities in Mexico: firstly the expansion of the corporate risk management market, and secondly the growth of the mortgage market through asset-backed securities,” said a BarCap spokesman.

Lorenzo Gonzalez Bosco has been made president of the group and of Barclays Bank Mexico. He has been in charge of investment banking activities for Mexico since 2002. Gonzalez Bosco will also oversee Barclays Capital Casa de Bolsa, the broker-dealer, which will be run by director Antonio Villa. Villa joins from ABN Amro Securities, where he was head of origination and debt capital markets for Mexico.

Barclays has also announced four more senior hirings in Mexico. Juan Icaza Fernandez del Castillo has been appointed a director of Barclays Bank Mexico, in charge of a team of four traders. He joined BarCap in June 2006 from BBVA Mexico, where he was head of derivatives trading. Carlos Kretschmer has also been signed as a director of Barclays Bank Mexico, and head of institutional sales. He joins from HSBC Investment Management in Mexico.

Jose Antonio Gonzalez and Jose Antonio Merigo have been hired as directors of Barclays Bank Mexico, in charge of investment banking activities with local corporations and multinationals. Gonzalez joined BarCap in New York in October 2005 and moved to the Mexico office in April 2006. Merigo joined in July 2006 from Santander Mexico, where he was managing director of corporate and investment banking.

Twenty front office and 10 back-office staff will work for the company, based in Torre Mayor, Mexico City.

BarCap has had a representative office in Mexico since 1975 and has recently expanded Mexican local derivatives coverage from New York, with appointments in 2003 and 2004.