Welcome to FinTech TV.
I'm Remy Blair.
The Mexican Stock Exchange is the country's main trading hub and the second largest in Latin America with over $530 billion in market value.
Now the exchange plays a key role in Mexico's economy, helping companies raise capital while giving investors a transparent and efficient place to trade.
Well joining me here at the Stock Exchange with more on the Bolsa Mexicana de valores, or BMV.
It's Jorge Alegria, CEO of the Mexican Stock Exchange.
Great to have you here and welcome.
Oh my pleasure.
Thank you for having me.
This is such a great place.
Well, you are usually at the Mexico Stock Exchange, so tell me about the economy right now in Mexico and the investment opportunities.
Well, the Mexican economy has proved to be very resilient.
Measure in any or in many in many ways right we have growth, light, small, but the economy is growing and the exchange rate is very stable.
Interest rates are coming down from What you can say a very high levels like coming up from 11% and now we are a little bit above 7% to 8%, but that's creating some opportunities for the equity segment as well, where investors are now looking for attractive valuations in the Mexican stock market and also you can see from the activity that we are seeing in the Mexican market reflected by an index, our main index.
Uh, increasing more than 20% for the year in peso terms, but if you see that in dollar terms because of this, the Mexican pesos strength, it's at 30% in dollars, but still the valuation is attractive, so we are seeing.
International participants looking for Mexican assets to diversify globally.
So that's that's why we are here in New York.
And speaking of which, when we're talking about market structuring, give us an idea of how Mexico's market is structured and what does liquidity look like.
Well, the Mexican Stock Exchange Group, we, we are a group of companies that operate infrastructures like a cash market, the Mexican Stock Exchange, and we have a derivatives exchange as well called Mexer where we trade futures and options on the most diverse and important benchmarks of Mexico, and we have also an OTC platform to trade bonds.
And on each of these companies we have international alliances and partners like for example, NASDAQ for the post trade division of technology also CME Group, they just list a futures contract on our index just a couple of weeks ago, so we are very happy with it.
And on the OTC business we have an agreement also with a partnership with ICAP for bond trading, so we, we have presence in the major assets of the of the Mexican market.
And also we clear all the trades, so we have all the deposed trade activity at our group.
So we are a well diversified company for financial services in Mexico.
And you are currently here at the New York Stock Exchange.
When we think about the history of this building, a lot has changed over the decades, and you've told us that you started on the floor at the Mexican Stock Exchange.
So give us an idea of how innovation, as well as technology will propel you forward.
Yes, so we moved to electronic markets in Mexico since 1999, so we were a relatively An early adopter on.
The electronic markets in a way.
And we are now offering services like any other major exchange in the world like co-location for international players that they can co-locate and trade directly at the exchange both for cash equities and and derivatives and we are improving our services, also offering some cloud services for co-location.
So we are moving and we are innovating in that space as well, providing access to international players and of course as well to local Mexican participants.
Yeah, and here on Wall Street, we keep a close eye on policy as well as regulatory progress down in the nation's capital in Washington DC, but when we're talking about Mexico, what are you seeing in terms of how new policies might affect Mexican markets?
I think Mexico is um Very close with the US.
We are integrated in many ways.
Our economic interaction is huge, so We we are part of this.
Uh, global, um review on on several trading policies.
But we believe that the Mexican economy, the Mexican market as a whole are very well positioned to to to be successful and end up with a very strong position with on on on trading.
With the rest of the world as well, so we are very confident that the proximity we have with the US will be an advantage.
Yeah, and finally, before I let you go, speaking of the rest of the world, how are you currently building out global visibility?
Well, we are here in New York.
Um, we are talking about private equity going public.
We just spoke about derivatives as well, or trading derivatives in in in global exchanges for Mexican underlyings and the With our technology to offer access to the Mexican market to global investors, allowing them to diversify and take advantage of also attractive valuation.
I think it's it's a good moment for for emerging markets in general.
And among these, the Mexican market is offering good alternatives for for the rest of investors and uh we we expect to have a couple of interesting new offerings coming hopefully this same year, early next year, so.
I think it's a good cycle for us now picking up.
Well, thank you so much for joining me today here at the New York Stock Exchange.
Thank you very much.
