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HomeEconomyMexican financial leaders plan stock exchange reforms to stem outflows

Mexican financial leaders plan stock exchange reforms to stem outflows

Carolina Pulice

MEXICO CITY (Reuters) – Mexico’s government and financial institutions will this month introduce a bill to change existing rules aimed at attracting companies into the country’s securities exchange. The head of the country’s stock market association told Reuters it was easier to access debt and equity markets.

Mexico’s main BMV stock exchange is seeking to attract IPOs. Recently, several well-known companies have decided to delist their shares from exchanges. These include brokerage Monex, airline Aeromexico and Carlos Slim’s retailer Sanborns. The bill would allow smaller companies to list debt and equity more quickly and at a lower cost.

“We built this program so that smaller companies could issue bonds and get the same financial treatment as public issuance of bonds and equities,” he said, adding that interest rates would be more competitive and provide long-term benefits financing.

He said the proposal, which was put forward with the government, BMV and the BIVA stock exchange, should be presented to Congress this month.

Mexico’s finance ministry said it “is working closely with the BMV to strengthen (the country’s) financial markets.”

BMV and BIVA did not immediately respond to a request for a request opinion, although BIVA’s chief executive spoke about the planned reforms at a meeting last week.

Garcia told Reuters the groups could come up with another proposal, this time focusing on hedge funds.

“This will create a new law that will allow funds to participate through hedging operations, derivatives and direct leverage,” he said, adding that AMIB is in talks with the government.

Institutional asset manager Luis Gonzali said the bill, if passed, would not only attract new companies but also allow Mexico’s financial The market is more “dynamic”.

“This measure will provide some relief from what we have seen for years: delisting trends and few companies participating in the Mexican financial sector,” he added.



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