Market infrastructure - Mexico

05.12.2017

Institutions and organisations

Stock Exchanges and related institutions

Bolsa Institucional de Valores (BIVA) (www.biva.mx)

BIVA is the stock exchange part of the group Central Corretajes S.A.P.I. de C.V. (CENCOR). It has been authorised to operate as an exchange since August 2017.

Bolsa Mexicana de Valores (BMV) (www.bmv.com.mx)

BMV is one of the stock exchanges in Mexico. Equities, debentures, warrants and limited fixed income are traded on the BMV.

Contraparte Central de Valores (CCV) (www.contraparte-central.com.mx)

CCV is the central counterparty. The CCV acts as a legal counterparty for inter-broker equity transactions on the BMV and BIVA and guarantees settlement of such transactions.

OTC market

All fixed income securities are traded OTC. There is no OTC exchange.

CSD - S.D. Indeval, Institución para el Depósito de Valores (www.indeval.com.mx)

SD Indeval started operations in 1987 and is the central securities depository, clearing and settlement agent for all trades executed on the BMV as well as money market instruments. That includes the majority of Mexican corporate debt securities and equity securities issued in the domestic market by Mexican companies as well as banker's acceptances, commercial paper, debentures and fixed income instruments.

Participants must maintain proprietary accounts for their own assets and third-party accounts for their clients' assets. Third-party assets are registered in the nominee name of the participant.

Most securities are immobilised or held in book-entry form (mainly fixed income securities). Securities that are deposited at Indeval can be kept by investors in physical form, however this is not market practice.

DALI is Indeval's system platform which clears and settles all fixed income and equity transactions. DALI settles transactions on a true DVP basis with same day funds availability. DALI connection media is SWIFT 15022 standard messages.

Central Bank and payment systems

The Banco de Mexico (Banxico) (www.banxico.org.mx)

Banxico currently maintains two main cash clearing systems which open from 08:30 to 17:00 to process payments.

  • SIAC (Sistema Interactivo de Atención a Cuentahabientes) is the primary cash payment system. It is open to all eligible financial institutions and can be used for payments of any value. Credit lines are fully collateralised with securities held at Indeval in designated accounts. SIAC also monitors intra-day overdrafts, which carry a per-minute funding cost.
  • SPEI (Sistema de Pago Electrónico Interbancario) was introduced in 2004 to align the Mexican payment system to global standards and international practices. It is a more efficient, secure and flexible payment system with better processing capabilities. It is a real-time system for processing payments among system participants with no minimum payment threshold.

Regulatory structure

Comisión Nacional Bancaria y de Valores (CNBV) (www.cnbv.gob.mx)

The National Banking and Securities Commission is responsible for supervising and regulating the banking industry and the securities market, including the stock exchange, central depository, issuers, brokers, market markers and investors.

Secretaria de Hacienda y Crédito Público (SHCP or Hacienda) (www.shcp.gob.mx)

The Ministry of Finance and Public Credit is responsible for the supervision of the financial industry in addition to the preparation of the Mexican annual budget, the establishment of tax policies, the collection of taxes, and external debt negotiations.

Banco de México (Banxico) (www.banxico.org.mx)

The Central Bank is responsible for supervising and regulating Mexican macroeconomic and monetary policy.