Mexico approved a new stock exchange called the Institutional Stock Exchange this week.
The country’s government is hoping that it can capture part of the equities market in Latin America’s No. 2 economy and that it may lure more companies to issuing stock.
According to its president Santiago Urquiza, the new exchange should be operating by the beginning of next year and will be up against the Mexican Stock Exchange, or BMV (BOLSAA.MX).
According to Urquiza, there is a lot of potential for new public offerings from companies with annual sales of between 500 million pesos and 1 billion pesos ($28 million to $56 million).
he stock exchange will be backed by technology from the United State’s exchange NASDAQ.
Urquiza has sai that he expects the number of publicly traded companies in Mexico could increase over the next three years by about 30 percent to around 200 listings while daily volume in Mexican stocks could grow 50 percent to around 20 billion pesos.