S&P Dow Jones Indices (S&P DJI) has announced that it has reached an agreement in principle with the Mexican Stock Exchange (Bolsa Mexicana de Valores, BMV) to license all of the BMV indices including their flagship index, IPC (Índice de Precios y Cotizaciones) - the broadest indicator of the BMV's overall performance. The final agreement is subject to definitive approvals.
S&P DJI will assume the marketing and commercial licensing of the BMV indices with the intent to jointly create new indices with the BMV. This agreement allows S&P DJI to eventually calculate all of the BMV indices.
The BMV currently publishes several leading stock market indices, each liquid enough to serve as the basis for potential derivative products and ETFs. “The BMV is the 5th largest exchange in the Americas (ranked by domestic market capitalization) and 2nd largest exchange in Latin America,” said Alex Matturri, CEO of S&P Dow Jones Indices. “With over 140 listed companies trading on the Exchange, it is the premier destination for international and domestic investors seeking access to the growing Mexican equity market. The BMV indices are well recognized internationally as the main benchmarks for the Mexican markets. We are excited to bring the S&P brand, and along with it, our indistinguishable characteristics of integrity, transparency and independence, to the BMV family of indices.”
Luis Tellez, Chairman of the Board and CEO of BMV said: “The leadership of S&P Dow Jones Indices and its worldwide recognition were the most important assets valued by BMV’s Board of Directors in order to have a licensing agreement in place that will broaden our coverage and other strengths well recognized by the market. S&P Dow Jones Indices’ 100+ years of indexing experience adds an important value to BMV in its indices business. The Mexican market and its participants will now have more benchmarks measuring international trends and market health.”
According to the agreement, the BMV will transition index calculation of its indices to S&P DJI over time ensuring a smooth transition that will have minimal impact to existing and new clients. S&P DJI will be responsible for the commercial licensing of the indices and the end-of-day data while the BMV will continue to commercialize real-time index data. As part of the agreement, all current BMV indices will be co-branded S&P.
Outside of branding, no changes are expected to be made in the near future to the methodology of the BMV indices that already are up to international standards. Together both companies will work in developing new indices to satisfy the evolving needs of the market.