Bolsa Mexicana de Valores S.A.B.
|Bolsa Mexicana de Valores S.A.B.|
|Founded||June 2008 as listed company|
|Key People||Luis Téllez, Chairman|
|Products||Trading exchanges and services|
Bolsa Mexicana de Valores S.A.B. (BMVSAB) sprang originally from the Mexican Stock Exchange (MSE) and is now a fully fledged publicly traded exchange operations company following an initial public offering (IPO) by the Mexican government in mid-2008. BMV owns not only the MSE - also confusingly known locally as the Bolsa Mexicana de Valores - but all the other important exchanges Mexico plus their main clearinghouse.
In early March of 2010, CME Group and the Bolsa Mexicana de Valores, S.A.B. de C.V. announced that they had entered into a strategic partnership that included an order routing agreement for derivatives products. CME Group purchased shares in the Mexican exchange valued at $17 million, or approximately 1.9 percent of outstanding BMV shares, as part of the equity portion of the agreement.
Bolsa Mexicana de Valores S.A.B. became a listed company on June 13, 2008 after a successful IPO in which over 13,600 investors purchased shares at 16.5 Mexican pesos each. The Mexican Stock Exchange was owned for 114 years by a group of Mexican banks and brokerages prior to BMVSAB's $388 million IPO. BMVSAB's A shares joined the Mexican Stock Exchange's benchmark IPC Index as one of the country's top 35 stocks.
BMVSAB's main exchange business, the Mexican Stock Exchange, showed improvement in some key market indicators over the second quarter of 2009 following precipitous falls in previous months. According to the report, the IPC Index rose slightly from 24,331.71 at the end of May to 24,368.38 by the end of June and has produced a yield of 11.7% so far over 2009, comparable to the world's best-performing stock markets.
On March 8, 2010, it was announced that the CME Group and the Mexican exchange had entered into an order routing agreement for derivatives products. Details of the agreement include the CME Group acquiring shares of the Mexican exchange valued at $17 million. Also, the CME Group was granted by the Control Trust of BMV the right to nominate a member to BMV board of directors. The CME Group will become the exclusive exchange provider of derivatives order routing services to BMV outside of Latin American and the BMV will be the exclusive exchange provider of derivatives order routing services to the CME Group in Mexico. The BMV's derivatives products are traded at their subsidiary, the Mexican Derivatives Exchange.
John Lothian News Interviews
CEO Jorge Alegria on the Growth Potential for MexDer
Jorge Alegria, CEO of the Mexican Derivatives Exchange (MexDer), has seen his share of change since joining the exchange in 2003. The exchange has partnered with CME Group to offer its products on the CME Globex platform and vice versa. It also is set to launch its new derivatives trading platform in March. Alegria also sees an opportunity in its bond contract and the possible addition of commodities. In this interview with John Lothian, he also outlines the regulatory reforms in Mexico and their impact on the derivatives market.
- Mexican Stock Exchange (MSE) - Fully electronic trading of domestic and international equities and debt securities.
- Mexican Derivatives Exchange (MexDer) - Electronic trading of mostly Mexican interest rates, forex and index futures and options contracts.
- SIF-ICAP - An OTC inter-dealer market in derivatives and fixed income securities.
- Indeval, Asigna and the CCV - Companies that provide BMVSAB's exchange investors with custody, clearing and settlement services.
On March 25, 2009 the Mexican government named long-time political operative and former Secretary of Communications and Transportation Luis Téllez as chairman of BMVSAB. The announcement came just a few weeks after Mexican President Felipe Calderón was forced to announce Téllez's resignation as a government minister following a financial scandal. Téllez joined the long-ruling Institutional Revolutionary Party (PRI) in 1980 and rose to serve as Secretary of Energy under President Ernesto Zedillo from 1997 to 2000 before being appointed managing director of private equity powerhouse The Carlyle Group. He replaced Guillermo Prieto, who took over in 2001 and later engineered the 2008 IPO but after presided over a 51 percent stock price decline.
- Press Release. CME Group.
- 2010 Annual Report & Statistics. World Federation of Exchanges.
- Members. World Federation of Exchanges.
- History and operations of the Mexican Stock Exchange. ArticlesBase.com.
- BMV performance report June 2009. BMV.
- CME Group, Bolsa Mexicana de Valores and MexDer Announce Order Routing, Equity Agreement. CNN Money.
- CEO Jorge Alegria on the Growth Potential for MexDer. JohnLothianNews.com.
- Bolsa Mexicana Nominates Luis Tellez as Chairman. Bloomberg.
- Luis Téllez. Wikipedia.