Mexican Stock Exchange (BMV) .MX Definition

What is the Mexican Stock Exchange (BMV)?

The Mexican Stock Exchange, known as Mexican stock exchange (BMV) in Spanish, is headquartered in Mexico City and is the country’s leading full-service stock exchange. The exchange trades cash stocks, derivatives, and fixed income products. Securities traded on the BMV are often indicated with the suffix ‘.MX’.

Established in 1886 as the Mexican Mercantile Exchange, the BMV adopted its current name in 1975. The BMV is currently the second largest stock exchange in Latin America (after Brazil) in terms of market capitalization of listed companies . The BMV’s trading system became completely electronic in 1999. Other milestones were the first listing of a foreign company (Citigroup) in 2001. The 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 only full-service stock exchange in the country and is the second largest stock exchange in Latin America.
  • The exchange lists securities in cash stocks, derivatives, and fixed income products.
  • The BMV itself became a public company after conducting the country’s first IPO in 2008.
  • There were approximately 148 companies in total on the exchange in 2021 with an aggregate market capitalization of around $ 530 billion.

Understanding the Mexican Stock Exchange (BMV)

The types of securities exchanged through the BMV include stocks, bonds, government and corporate bonds, warrants and other derivatives. The shares of the Initial Public Offerings (IPO) are made available through the BMV. The functions of the BMV include facilitating the trading of securities; clearing, settlement and custody; make information on securities available to the general public; promote fair market practices; and ensure transparency.

Some of the main requirements to go public are a minimum of 200 shareholders, three previous consecutive years of earnings, and the public must own at least 15% of the shares of a company. The National Banking and Securities Commission is the main regulator of the Mexican Stock Exchange.

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

The BMV is the only full service stock exchange in Mexico.

Brief history of the Mexican Stock Exchange (BMV)

In 1986, the BMV started and was originally known as Bolsa Mercantil de México. The exchange changed its name in 1975 to the Mexican Stock Exchange and acquired smaller exchanges in Monterrey and Guadalajara. The exchange was privately owned for 114 years, most recently by several 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. More than 13,600 individual investors bought shares in the IPO, They 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 represents the largest and most liquid stocks on the stock market. The consumer staples, materials, finance, telecommunications services, industrial, consumer discretionary and utilities sectors make up the index, reflecting the broader economy. América Móvil, Cemex, Televisa, Telmex, TV Azteca and Walmex are some of the prominent companies listed on the stock exchange, and some of the largest listed companies are listed as American Depository Receipts (ADRs) on the US stock markets.

BMV (the company) is listed on the Mexican Stock Exchange under the ticker symbol BOLSAA.MX. As of May 2021, the Class A shares of Grupo BMV were included in the BMV’s IPC index of the 35 main Mexican stocks.

According to the Sustainable Stock Exchanges Initiative, as of July 2021, there were approximately 148 companies in total listed on the exchange with an aggregate market capitalization of around $ 417 billion.

Done quick

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

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