Definition of the Mexican Stock Exchange (BMV)

Towards the middle of the nineteenth century, the purchase and sale of shares and securities in the Mexican financial market was carried out by a very primary procedure. Over the years, an increasingly organized stock market was created. In 1867 a law to regulate the financial sector and in 1895 the Mexican Stock Exchange was founded. The trajectory of this financial institution is closely linked to the history of Mexico.

General principles and basic operation of the BMV

This private financial entity operates by concession from the Ministry of Finance and Public Credit. Some of its main functions are the following:

1) establish the premises and procedures adequate to facilitate the supply and demand of securities and credit instruments,

2) publish all the information related to the securities that make up the BMV,

3) adopt the pertinent measures so that stock market operations are carried out in a transparent and secure manner and

4) establish norms with standardized criteria so that transactions are fair and equitable.

As for his functioning, the raising of money takes place within the primary market, that is, companies that invest their money in shares and securities that are sold by companies and private investors who buy shares of some company.

The secondary market is based on the commercialization of investors of their own stocks, titles and securities. Brokerage houses are also registered on the BMV premises (these entities act as stock brokers that facilitate the purchase and sale of shares).

Facts about the BMV

- In 1916 the BMV incorporated the use of the telephone to facilitate stock market operations.

- In 1995 the electronic system for stock transactions was introduced.

- In 1998 two new services of integration financial: Asigna and Mexder.

- In 1999, the traditional system in which transactions were made out loud stopped working.

- In 2000, the electronic systems of the brokerage houses were coordinated with the systems of the BMV.

- In 2008 the BMV became a anonymous society of a stock market nature and in the same year a new product for investors, SIBOLSA, was incorporated.

- This financial institution has its own academic center, the School of the Mexican Stock Exchange.

- In the context of Latin America the BMV ranks second in the stock market ranking, being the Stock Exchange of Sao Paulo the one that occupies the first place.

Photos: Fotolia - guingm5 / lisheng2121

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