Mexican Stock Exchange (BMV)

What Is the Mexican Stock Exchange (BMV)?

The Mexican Stock Exchange, known as the Bolsa Mexicana de Valores (BMV) in Spanish, is settled in Mexico City and is the country's fundamental full-service securities exchange. The exchange deals in cash equities, derivatives, and fixed-income products. Securities traded on the BMV are frequently denoted with the postfix '.MX.'

Laid out in 1886 as the Mexican Mercantile Exchange, the BMV adopted its current name in 1975. The BMV is as of now the second-biggest stock exchange in Latin America (after Brazil) in terms of market capitalization of listed companies. The BMV's trading system turned out to be fully electronic in 1999. Different milestones were the main listing of a foreign company (Citigroup) in 2001. BMV itself turned into a public company following an IPO in 2008, after which it was listed on its own stock exchange.

Understanding the Mexican Stock Exchange (BMV)

The types of securities exchanged through the BMV include stocks, debentures, government and corporate bonds, warrants, and different derivatives. Shares of initial public offerings (IPOs) are made accessible through the BMV. The BMV's jobs include facilitating securities trading; clearing, settlement, and care; making securities data accessible to the overall population; advancing fair market rehearses; and guaranteeing transparency.

A portion of the principal requirements for listing on the exchange are a 200 shareholder least, three previous back to back long periods of profits, and the public must hold no less than 15% of a company's shares. The National Banking and Securities Commission is the primary regulator of the Mexican Stock Exchange.

The exchange utilizes a fully electronic trading system called the BMV-SENTRA Equities System.

The BMV is Mexico's just full-service securities exchange.

A Brief History of the Mexican Stock Exchange (BMV)

In 1986, the BMV started and was initially known as the Bolsa Mercantil de Mexico (Mexican Mercantile Exchange). The exchange changed its name in 1975 to Bolsa Mexicana de Valores and acquired more modest exchanges in Monterrey and Guadalajara. The exchange was privately owned for a considerable length of time, most as of late by different Mexican banks and businesses.

In 2008, in Mexico's most memorable IPO, BMV offered its shares to the public and turned into a listed company on June 13, 2008. More than 13,600 individual investors bought shares in the IPO, which were priced at 16.50 pesos. In July 2021, the shares were worth around 41 pesos.

Top Listings on the Exchange

The S&P/BMV IPC Index addresses the biggest and most liquid stocks on the stock exchange. The consumer staples, materials, financials, media transmission services, industrial, consumer discretionary, and utility sectors form the index, which is intelligent of the broader economy. America Movil, Cemex, Televisa, Telmex, TV Azteca, and Walmex are a few conspicuous companies listed on the exchange, and a portion of the bigger listed companies trade as American Depository Receipts (ADRs) on U.S. stock markets.

BMV (the company) trades on the Mexican Stock Exchange under the ticker code BOLSAA.MX. As of May 2021, Grupo BMV's class A shares were included in the BMV's own IPC index of the main 35 Mexican stocks.

As per the Sustainable Stock Exchanges Initiative, as of July 2021, there were roughly 148 companies altogether listed on the exchange with an aggregate market capitalization of around US $417 billion.

Fast Fact

BMV turned into a public company following an initial public offering (IPO) in 2008; this undeniable the country's most memorable IPO.

Features

• There were roughly 148 companies altogether on the exchange in 2021 with an aggregate market capitalization of around $530 billion.
• BMV itself turned into a public company after it led the country's most memorable IPO in 2008.
• The Mexican Stock Exchange (BMV) is the nation's just full-service securities exchange and is Latin America's second-biggest stock exchange.
• The exchange records securities in cash equities, derivatives, and fixed-income products.