Bolsa Institucional de Valores (BIVA), the next Mexican Stock Exchange will present a delay in its planning to launch due to no having the concession yet by the Secretary of Finance and Public Credit (SHCP), indicated Fernando Pérez, head of the new stock exchange project.
These details have been taken into account and it does not affect the process of the project. All the costs are covered, and it is not a delay, but part of the documentation process.
When discussing the documentation, Pérez Saldívar explained that the Regulations for Stock Exchanges are already determined by the Federal Commision of Regulatory Improvement (COFEMER), and then it can be published in any moment.
Besides, the latest version of the Regulations for Stock Exchanges for comments, the first and foremost important aspect of all the change in regulations, was circulated last April 17th. It is scheduled to be commented during two weeks, but few are expected.
In March, Santiago Urquiza, head of the company that will run BIVA, CENCOR, commented that they were waiting on the SHCP concession to be granted between last month and this month. Thus, operations were set to begin in September 2017.
After the changes, the concession might be granted for the second week of May, but the launch can kept for September as planned.
According to Fernando Perez, after the two weeks of comments are due, the determination first week will come and, once in COFEMER, the hope is that no other obstacle hinders the granted of the concessions.
Raymundo Tenorio, professor at Instituto Tecnológico de Estudios Superiores de Monterrey, states that democratizing and making financial markets access more competitive is an urgent matter, not only for the credit user but for the different parties involved. Tenorio also stressed that the authorities should expedite the paperwork. Beyond expressing the urgency of the matter given the need for competition, Tenorio emphasized the authorities’ responsibility in avoiding the exceeding of deadlines for it could cause doubts.
On the other hand, Professor Gabriel Pérez from Universidad Panamericana agrees with the need of having competition and giving way to more interaction in the stock market. SHCP and other institutions like The National Banking and Securities Commission should expedite the approval process of the documentation, said Pérez. He also declared that among the stipulations in the financial reform, it is stated to create more competition inside the market, and hence it is crucial to expand on this topic, since there has only been one player.