Mexican finance leaders plan stock exchange reform to stanch exodus

Workers work at their positions as a ticker shows inventory trade information at Mexico’s inventory trade, in Mexico Metropolis, Mexico June 1, 2021. REUTERS/Toya Sardo Jordan

MEXICO CITY, Sept 8 (Reuters) – Mexico’s authorities and monetary establishments will suggest a invoice this month to alter present guidelines, aiming to draw corporations to the nation’s inventory trade by making it simpler to entry debt and equities markets, the top of the nation’s inventory market affiliation informed Reuters.

Mexico’s primary BMV inventory trade (BOLSAA.MX) is looking for to lure IPOs. Not too long ago, a number of outstanding corporations determined to de-list their shares from the trade. These embody brokerage Monex (MONEXB.MX), airline Aeromexico (MONEXB.MX) and Carlos Slim’s retailer Sanborns (GSANBORB1.MX). learn extra

The chief president of the Mexican Affiliation of Inventory Market Establishments (AMIB), Alvaro Garcia Pimentel, informed Reuters the establishment is working to suggest a invoice that might permit smaller corporations to checklist money owed and equities extra shortly and at decrease value.

“We constructed this undertaking so smaller corporations might situation debt and obtain the identical fiscal therapy as public gives for money owed and equities,” he stated, saying charges can be extra aggressive and financing longer-term.

He stated the proposal, put along with the federal government and the BMV and BIVA inventory exchanges, ought to be offered to Congress this month.

Mexico’s Finance ministry stated it’s “working carefully with the BMV to strengthen (the nation’s) monetary market.”

BMV and BIVA didn’t instantly reply to a request for remark, although the CEO of BIVA spoke of the deliberate reform at a convention final week.

Garcia informed Reuters the teams would doubtless create one other proposal, this time specializing in hedge funds.

“This is able to create a brand new regulation permitting funds to take part by means of hedging operations, derivatives and direct leverage,” he stated, saying AMIB was in talks with the federal government.

Luis Gonzali, an institutional asset supervisor, stated if the invoice passes it will not solely entice new corporations however make Mexico’s monetary market extra “dynamic.”

“The measure would to a sure extent mitigate what we’ve got seen for a few years: a pattern of de-listing and few corporations taking part in Mexico’s monetary sector,” he added.

Reporting by Carolina Pulice in Mexico Metropolis
Modifying by Sarah Morland and Matthew Lewis

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