What Is the Mexican Stock Exchange (BMV)?

The Mexican Stock Exchange, Bolsa Mexicana de Valores (BMV) in Spanish, is headquartered in Mexico City and is the country's full-service securities exchange. The exchange deals in cash equities, derivatives, and fixed-income products.

Established in 1886 as the Mexican Mercantile Exchange, the BMV adopted its current name in 1975. The BMV is presently the second-largest stock exchange in Latin America in terms of market capitalization of listed companies (after Brazil). The BMV's trading system became fully electronic in 1999. Other milestones were the first listing of a foreign company (Citigroup) in 2001. BMV itself became a public company following an IPO in 2008, after which it was listed on its own stock exchange.

Key Takeaways

  • The Mexican Stock Exchange (BMV) is the country's only full-service securities exchange and Latin America's second-largest stock exchange.
  • The exchange deals in cash equities, derivatives, and fixed-income products.
  • BMV itself became a public company after it conducted the country's first IPO in 2008.
  • There were approximately 148 companies in total on the exchange in 2019 with an aggregate market capitalization of around $416 billion.

Understanding the Mexican Stock Exchange (BMV)

The types of securities exchanged through the BMV include stocks, debentures, government and corporate bonds, warrants, and other derivatives. Shares of initial public offerings (IPOs) are made available through the BMV. The BMV's roles include facilitating securities trading; clearing, settlement, and custody; making securities information available to the general public; promoting fair market practices; and ensuring transparency.

Some of the main requirements for listing on the exchange are a 200 shareholder minimum, three previous consecutive years of profits, and the public must hold at least 15% of a company's shares. The National Banking and Securities Commission is the main regulator of the Mexican Stock Exchange.

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

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

A Brief History of the Mexican Stock Exchange (BMV)

In 1986, the BMV began and was originally known as the Bolsa Mercantil de Mexico (Mexican Mercantile Exchange). The exchange changed its name in 1975 to Bolsa Mexicana de Valores and acquired smaller exchanges in Monterrey and Guadalajara. The exchange was privately owned for 114 years, most recently by various Mexican banks and brokerages.

In 2008, in Mexico's first IPO, BMV offered its shares to the public and became a listed company on June 13, 2008. Over 13,600 individual investors bought shares in the IPO, which were priced at 16.50 pesos. In August 2019, the shares were worth around 34 pesos.

Top Listings on the Exchange

The S&P/BMV IPC Index represents the largest and most liquid stocks on the stock exchange. The consumer staples, materials, financials, telecommunication services, industrial, consumer discretionary, and utility sectors compose the index, which is reflective of the broader economy. America Movil, Cemex, Televisa, Telmex, TV Azteca, and Walmex are some prominent companies listed on the exchange, and some of the larger 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. On February 1, 2009, BMV's A shares were included in the BMV's own IPC index of the top 35 Mexican stocks for the first time.

Fast Fact

BMV became a public company following an initial public offering (IPO) in 2008; this marked the country's first IPO.

According to the Sustainable Stock Exchanges Initiative, in 2019, there were approximately 148 companies in total on the exchange with an aggregate market capitalization of around $416 billion.