In 2024, Mexico’s stock market is set for a significant change with the launch of at least 30 simplified company issuances.
This initiative results from the Securities Market Law reform, aiming to rejuvenate financing and refresh listings on Mexico’s two main stock exchanges.
The Ministry of Finance, stock exchanges, and financial institutions are quickly working to finalize secondary regulations for this reform by early 2024.
Their goal is to activate new rules for listing stocks and debt on the Mexican Stock Exchange (BMV) and the Institutional Stock Exchange (BIVA).
Álvaro García Pimentel, leader of the Mexican Association of Securities Institutions (AMIB), is hopeful. He anticipates 30 to 40 simplified issuances this year, pending the timely completion of these regulations.
After their release, both BMV and BIVA will update their rules, clarifying the process for new stock or bond issuances.
The reform’s main aim is to help medium and small businesses. It seeks to make it easier and cheaper for them to access the securities market, offering a quicker route to financing.
Empowering Market Accessibility and Growth Initiatives
The National Banking and Securities Commission (CNBV) plans to issue secondary provisions in March 2024. These provisions will facilitate the first simplified issuances on Mexican exchanges.
Jesús de la Fuente, CNBV’s president, confirmed this timeline, following discussions with finance leaders.
The CNBV is coordinating with various authorities, including the Ministry of Finance and Bank of Mexico, to finalize the regulations.
María Ariza, CEO of BIVA, emphasized the ongoing efforts to create an inclusive market. A group, led by AMIB, meets weekly to refine the eligibility criteria for medium and small businesses.
Ariza highlights the importance of making the market accessible to more companies. She focuses on streamlining processes for efficient market access and fostering demand for these new issuances.
Ariza also sees potential in attracting foreign investors with these offerings. In 2023, BMV led the debt issuance market, raising significant funds.
However, Ariza notes BIVA’s commitment to growth through attracting new issuers, contrasting BMV’s focus on established companies.
BMV dominated the debt issuance market in 2023, with MXN$572 ($30) billion raised through 1,346 issuances.