Mexico Said to Prep New Rule to Route More Bids to Biva Exchange
(Bloomberg) -- Mexican regulators are set to propose new rules that would require brokerages to channel more bids to a struggling, upstart stock exchange, according to people familiar with the matter.
The draft, set to be published as soon as next week for public comment, will benefit Biva, which launched in 2018 in a challenge to the Bolsa Mexicana de Valores SAB, previously the country’s only bourse, the people said, requesting anonymity because talks are private. Biva had just 8% of trading volume in July, down from a peak of almost 16% in late 2019.
The proposals aim to distribute passive bids more evenly between both exchanges, but stop short of setting a specific quota like an earlier version that would have forced local brokers to send at least 30% of passive bids to each exchange. Top brokerages had objected to the original draft in March, arguing it could hurt clients and distort the market.
Following those complaints, the banking and securities regulator CNBV pulled the draft in April and entered into private talks with brokers on a new version. CNBV didn’t immediately respond to requests for comment today.
Public comment on the regulations, once posted, could last more than a month. The implementation period is still under discussion. The CNBV wants rules to take effect within four months of their eventual official publication in the nation’s daily gazette, while brokers are asking for a nine-month period.
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