The Mexican government has formally awarded a concession to a new, second stock market, in what is being seen as a bid to generate new investment in the country’s businesses and increase the number of investable entities there.
In a statement, the company behind the new stock market, Mexico City-based Central de Corretajes (CENCOR), said it would “contribute to the growth and modernisation of the securities market”, fueled by “the latest technology powered by Nasdaq”.
The New York-based securities exchange operator will supply the new Mexican exchange with its X-stream trading platform, which is widely used by stock exchanges around the world, CENCOR said in its statement.
The new exchange is expected to begin operating in the early part of next year, CENCOR added.
The new market will be known as BIVA – Bolsa Institucional de Valores – and it is expected to target small and mid-cap companies.
The concession to allow BIVA to begin trading was formally handed to CENCOR president Santiago Urquiza on Tuesday by Mexican president Enrique Peña Nieto, in a ceremony held at the National Palace in Mexico City.
On the first day of operation all publicly-held securities in Mexico will be listed on both the new BIVA exchange as well as Mexico’s established stock market, the Bolsa Mexicana de Valores (BMV), Latin America’s second-largest by assets. It was founded in 1933, and is also located in Mexico City.