VIEW FROM THE TOP |
EDUCATE TO ENCOURAGE GREATER BMV PARTICIPATION AMONG MINERS JOSÉ-ORIOL BOSCH CEO of BMV Group
Q: How are you attracting mining companies to the BMV?
Q: What are the implications of the new BIVA stock
A: The sector has a great deal of potential in Mexico simply
exchange for your strategy?
because of the country’s geological wealth. We have a few
A: We are not yet sure what BIVA’s strategy will be so I cannot
mining companies listed on the BMV, but not enough. The
comment much on that. However, we hope that the strategy
mining sector represents 4 percent of the country’s GDP
will involve developing the trading market as it has great
and there are many mining companies working here, but
potential. If, instead of focusing on growing the market, it
only four companies are listed on the BMV: Peñoles, Grupo
cannibalizes itself, the market will be equally as small, or even
México, Autlán and Minera Frisco. These companies can
smaller. And with two stock exchanges, this makes no sense.
take advantage of the BMV’s different products since we do not exclusively focus on the stock market. Some of these
Q: How has the BMV protected itself against external
companies also have short and long-term debt, so a lot of the
shocks caused by international tensions?
time private debt is listed on the BMV to attract investment.
A: The companies listed on the BMV are so diversified in terms of sectors, sizes and business segments that the
In Mexico, there needs to be a greater diffusion of knowledge
impact of geopolitical uncertainty has been much less
in terms of the benefits and the processes for listing on
intense in Mexico. The renegotiation of NAFTA presented
the BMV. The problem is that many companies that require
an opportunity for Mexico to turn to other markets. Mexico
financing to grow or to carry out their expansion plans are
does not only have NAFTA; it has a great number of free
not familiar with the BMV, its products or requirements. I
trade agreements with other countries, even though the
think this is the main challenge. Those companies that have
majority of trade is focused on the North American region.
taken advantage of the opportunities of the BMV have been extremely successful.
Q: What would be included in your wish list for the next government administration to make doing business easier?
Q: Why does Mexico not have a system like Toronto’s
A: I think the most important thing is to spur greater
designed for SMEs and junior mining companies?
growth. Rather than growing 2.5 percent, Mexico should
A: We have the legislation and, to a certain point, the
grow by double that, at least. There have been some
products. The issue is that the level of financial education in
encouraging changes in this administration with the
Canada is far more widespread. In Mexico, smaller companies
structural reforms, but with increased economic growth,
can already list on the stock exchange and the barriers
this launches a cycle whereby greater investment is
to entry are actually very low. For example, there are no
attracted to the country. Of the companies listed on the
financial requirements to seek financing in the debt market.
BMV, more than 90 percent are concentrated in four
Requirements for capital markets have been loosened and
states in the country: Nuevo Leon, Mexico City, State of
we have been creating new products like the Sociedades
Mexico and Jalisco. It should not be like this because
Anónimas Promotoras de Inversión Bursátil (SAPIB), which
the GDP of those four states is not 90 percent of the
are designed for small to medium-sized companies.
country’s GDP. This means something is failing and we need to look at how we can support those companies in
We also have a promotion department that focuses on
the other states.
seeking out these companies that are not necessarily large but that want to grow and that need resources to do so. For a while now, we have provided an incentive plan for
BMV Group is comprised of companies that together operate
companies with less than MX$500 million of shareholder
a stock exchange, derivative products, an OTC securities and
equity, whereby the listing fee is not charged and the first
derivatives brokerage company, a securities clearing house and
year’s maintenance fee is charged at a 50 percent discount.
a derivatives clearing house
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