The Mexican Stock Exchange, commonly known as Mexican Bolsa, Mexbol, or BMV, is one of two stock exchanges in Mexico, the other being BIVA - Bolsa Institucional de Valores.[4] It is the second largest stock exchange in Latin America, only after São Paulo based B3 in Brazil. It is also the fifth largest stock exchange in the Americas.[5] The exchange platform is owned by BMV Group, which also owns the derivative exchange MexDer and the custody agency Indeval.
The BMV was created out of the merger of the three stock exchanges which formerly operated in Mexico: The Bolsa de Valores de México, which operated in Mexico City, the Bolsa de Occidente (Occidental Stock Exchange) in Guadalajara, and the Bolsa de Monterrey (Monterrey Stock Exchange). The exchange kept modernising until its introduction of a fully electronic system for trading which was consolidated in 1999.
In 2014, the Mexican Stock Exchange completed its first trade as a part of MILA which, together with the stock exchanges of Santiago, Lima, and Colombia, is the largest securities market by total capitalisation in Latin America.
History
Bolsa de México
From 1880 to 1900, Plateros and Cadena streets in the historic center of Mexico City were home to recurring meetings in which brokers and businessmen purchased and sold all kinds of commodities as well as stocks in public offerings. Afterwards, exclusive groups of shareholders and issuing company representatives would gather to negotiate behind closed doors in different places around the city. In 1894, Manuel Algara, Camilo Arriaga, and Manuel Nicolín pushed, among the most distinguished brokers of the time, the idea of a normative and institutionalised system to trade securities. With the increased backing and widespread support for his ideas, the Bolsa Nacional (National Stock Exchange) was founded on 31 October 1894 at 9 Plateros Street, later renamed Madero Street. Less than a year later, another group of brokers, led by Francisco A. Llerena and Luis G. Necochea, formed a society named Bolsa de México (Stock Exchange of Mexico), and registered as a competing establishment on 14 June 1895. Because of coinciding objectives and links between members of the two institutions, leaders began discussing a union between them. On 3 September 1895, the merger was finalised, keeping the name Bolsa de México, and the administrative offices at the Plateros Street address. The company was officially inaugurated on 21 October 1895.
By the start of the following year, Bolsa de México had three public issuing companies and eight private ones, among them, the Bank of Mexico, the National Bank of Mexico, and the (later acquired by Banco Santander
Structure and operations
BMV is now a public company following its IPO in June 2008, and its shares are traded on the BMV equities market. It operates by concession of the Secretariat of Finance and Public Credit.[9]
Until its IPO, BMV was owned by its members, which were a group of banks and brokerage firms. The exchange trades debt instruments including Federal Treasury certificates (CETES), Federal Government Development bonds (BONDES), Investment Unit bonds (UDIBONOS), Bankers acceptances, promissory notes with yield payable at maturity, commercial paper and development bank bonds. It also trades stocks, debentures, mutual fund shares, and warrants. Trading is conducted electronically through the BMV-SENTRA Equities System. Settlement is T+2, and trading hours are 7:30 a.m. to 2 p.m. for the equities market and 7:30 a.m. to 3 p.m. for the derivatives market (Monday through Friday),
Indices
The BMV calculates 13 indices of stock prices. Each index can be used as an underlying value for derivative products listed on specialized markets. The main benchmark stock index is called the IPC, which stands for Índice de Precios y Cotizaciones, and is the broadest indicator of the BMV's overall performance. It is made up of a balanced weighted selection of shares that are representative of all the shares listed on the exchange from various sectors across the economy, and is revised twice a year. Weight is determined by market capitalization. The IPC's value is related to the previous day's value, rather than the base date of October 30, 1978. Since February 2009 the IPC index has included BMV's own A shares. Indice Mexico (INMEX) is a market capitalization weighted index of 20 to 25 of the BMV's most highly marketable issuers, using their most representative series. The sample is limited to issuers with a minimum market value of $100 million and is revised every six months. The weighting cannot be greater than 10% at the start of each calculation period.
Listed companies
Some major examples:
- América Móvil: Telecom
- Cemex: Cement
- FEMSA: Conglomerate
- Alfa: Conglomerate
- Grupo Aeroportuario del Pacífico: Airports
- Grupo Bimbo: Food
- Grupo Industrial Saltillo: Conglomerate
See also
- Bolsa Institucional de Valores
- List of stock exchange mergers in the Americas
- List of stock exchanges in the Americas
- List of Mexican companies
- List of largest Mexican companies
- Economy of Mexico
- Mexican peso
External links
References
- Listado de Empresas Emisoras (Listing of issuing companies) retrieved 15 January 2015^
- About Grupo BMV www.bmv.com.mx, retrieved 2024-03-05^
- title=Bolsa Mexicana de Valores: Reporte Trimestral 4Q2015|url=https://www.bmv.com.mx/docs-pub/reporteTrimestral/BMV4Q15_Engf.pdf^