The International Quotation System (SIC) in Mexico is a success story and will look to increase the number of investors in the future, increasing anonymity, reducing the spread, and increasing liquidity and improving listing processes, according to several experts gathered for the celebrations of the tenth anniversary of the SIC in Mexico, which was held on Thursday in the nation's capital.
During the event Luis Tellez, BMV's president, congratulated Deutsche Bank for achieving the launch of the global market ten years ago; while he added that this is “a Mexican financial invention” which technology has been imitated and has proven very useful for this type of markets to be established in other countries, particularly in the developing nations.
The market, which openned in May 2003 with 30 issuers’ shares, currently has more than 900 different securities of different foreign assets and represents about 20% of the total value traded on the Mexican Stock Exchange, being “an extraordinary option for Mexican investors both individuals and institutions”, according to Tellez.
Juan Hernandez, head of iShares in Mexico, mentioned that there is a huge opportunity for growth within the global market to internationalize portfolios.
Meanwhile, David Plasencia, Director of Financial Supervision for CONSAR said that the Afores currently have an exposure to foreign markets of 17% of their portfolios, 67% of which is carried out through the SIC. In this respect, Octavio Ballinas, Technical Deputy Director for the Amafore, highlighted as the key challenges: the review of the current 20% limit on foreign investment “so as to avoid bubbles within the local market", and encouraging greater participation by institutional investors- in order to achieve and to maintain anonymity-, because the afores represent 60% of the SIC's operations, and without anonymity there is a disclosure of strategies, a situation which is not ideal when competing in profitability.
Edwin Reyes, Managing Director, Global Head of Deutsche Bank’s Depository Receipts, said that the success seen in the ten years of operation of the SIC is a cause for celebration and a model which they aim to duplicate in other countries. The executive also highlighted its importance for business and said he will continue to work with stakeholders to grow the market, both in terms of the number of investors and of the products offered.
Claudio Curtis, Deutsche Bank Director in Mexico, explained that as at the end of May 2013 his institution held 22,000 million dollars of SIC assets, of which 55-60% were from Afores, 15% from mutual funds, 5% from corporate pension funds and insurance, and the remainder from qualified investors and individuals.
El mercado global BMV es un mecanismo diseñado para permitir a los inversionistas institucionales y calificados mexicanos adquirir valores extranjeros que no fueron objeto de oferta pública en México y que no se encuentran listados en el Registro Nacional de Valores de la CNBV. El listado de un nuevo valor se puede realizar en un lapso de dos semanas.
A Junio de 2013 el SIC cuenta con 903 valores listados (49% ETFs, 39% acciones y 12% deuda), con un importe promedio diario de 3.224 millones de pesos, o 242 millones de dólares, un 58,27% por arriba del nivel promedio de 2012.