January 17, 2018 |
For decades, the Bolsa Mexicana de Valores (BMV) has been an iconic, almost untouchable symbol of Mexico’s financial markets. The stock exchange took shape in 1975, when the country’s three regional markets in Mexico City, Guadalajara and Monterrey merged as one. Since then, it has operated as a near-monopoly.
But competition is on the horizon. A second Mexican stock exchange, the Bolsa Institucional de Valores, or BIVA, is slated to start operations in early 2018.
“BIVA has been a disruptive project,” says CEO Fernando Pérez. “The goal is to generate competition in the sector. Markets develop when competition arrives.”
The local private equity firm LIV Capital has invested 450 million pesos
Mexico will have a second stock exchange in 2018, with promises to unlock fundraising options for more businesses in the country. But skeptics wonder if forming a new market is enough to usher in a tide of IPOs.