VIEW FROM THE TOP
TAPPING BMV TO FINANCE INFRASTRUCTURE DEVELOPMENT JOSÉ-ORIOL BOSCH Director General of Grupo Bolsa Mexicana de Valores (BMV Group)
Q: What are the main challenges in promoting the
Q: What are the benefits of having more Fibras participating
participation of companies in the BMV?
in the market?
A: Lack of participation is an issue the country faces in
A: Having more than 10 Fibras in the market benefits the
general. The biggest challenge is creating a financial culture
industry and we welcome even more. Other countries,
in Mexico that is open to investing in the stock exchange.
such as the US, have had similar tools, such as Real Estate
The country has 5 million registered companies and only
Investment Trusts (REITS), since the 1980s. In Mexico, they
350 are using the BMV as a form of finance, of which 150
were only created in 2011 with Fibra Uno. Growth was quick
participate in the capital market. Another issue is that over
and at one point we were questioning if the market was being
90 percent of the 350 companies on the BMV are from
oversaturated with Fibras. But considering the size of our
only four states in Mexico: Mexico City, Nuevo Leon, Jalisco
economy and the existing potential in the real estate industry,
and the State of Mexico. There are 32 states in the country
Mexico should have many more Fibras. We just need to make
and 12 of these, such as Zacatecas, Durango and Guerrero,
sure growth is gradual to avoid a crash or inflation of shares.
do not have any companies listed on the Mexican Stock
These tools help facilitate real-estate investment and are a
Exchange in either capital or debt markets, regardless of
good choice for anyone interested in investing in the real-
the industry. This is inhibiting economic growth. But the
estate industry. They are also quite diverse — we have Fibras
root of the problem goes beyond the number of companies
for hotels, commercial centers, offices and more.
listed. If 200 companies were to list on the BMV tomorrow, there would not be a market big enough to buy these
CKDs have financed over MX$100 billion since their creation with close to 80 issues
shares. To create a healthy trading market, a balance of both companies and investors is required. If we had a larger retail base like that in Canada, for example, we could increase participation in the exchange. Banks and brokerages could help redefine this context by offering more financial education.
Q: How is the creation of a second stock exchange, BIVA, Q: What is the BMV doing to strengthen Mexico’s financial
impacting BMV and what opportunities to collaborate have
culture?
you identified?
A: Our main priority in this matter is to continue
A: We are hoping the impact will be positive. We recognize
developing a stronger financial and trading culture when
that issues in Mexico’s financial culture cannot be automatically
it comes to businesses, investors and brokerages. The
fixed through the creation of a second stock exchange. The
stock exchange and brokerage firms are collaborating
regulation in Mexico had to be changed to allow more than
to develop products and services that can better serve
one stock exchange to participate. The BMV strives to make
different types of companies and projects. Traditionally,
sure the additional costs of having a second exchange will not
the stock exchange serves the debt and equity markets
result in inefficiency or fragmentation. Even though there is
as other exchanges, but in the last years it developed
more than one stock exchange, both are regulated according
equity-financing nontraditional instruments such as
to the same norms and legislation.
CKDs. This tool was developed out of the country’s need for investment to generate resources, employment and new companies. CKDs have financed over MX$100 billion
BMV Group operates the Mexican Stock Exchange (BMV), Latin
since their creation with close to 80 issues. The main
America’s second-largest stock exchange, with over US$530
industries that participate in CKDs are infrastructure, real
billion. Infrastructure developers and investors are becoming
estate and private equity.
more active in the BMV through Fibras and CKDs
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