Spotlight on the Mexico Stock Exchange

The Mexico Stock Exchange, or Bolsa Mexicana de Valores (BMV), is the largest stock exchange in Latin America, an important hub for regional investment, and a benchmark for the Mexican economy.

Based in Mexico City, the exchange boasts a current market capitalisation of $1.5 trillion (as of January 2023) and sees a daily trading volume of approximately $800 million. Additionally, the newer Institutional Stock Exchange (BIVA), as well as the MexDer (the Mexican OTC derivatives exchange), are also based in Mexico City. 

Known for its well-regulated market, strong investor protection and low listing cost, the BMV represents a diverse range of industries and is home to 129 companies, including many blue-chip Mexican companies like America Movil, FEMSA, Grupo Mexico, Bimbo, and Grupo Aeroportuario del Pacifico. As such, the region presents high-frequency traders with a number of attractive investment opportunities - if they can gain optimal, low-latency access to the exchange. 

Alpha opportunities for trading firms entering the Mexican market

With spreads on established US and European exchanges becoming ever thinner, and margins narrowing as a result, emerging markets like Mexico are attractive destinations for trading firms seeking new sources of alpha. Forward-thinking, market-making firms with the right infrastructure to access the Mexico Stock Exchange, and capture its wider spreads, can look forward to high returns. 

However, setting up a trading operation to take advantage of such a market can be a difficult and costly undertaking for firms. The challenges of establishing a presence on less familiar venues are numerous, so even larger proprietary firms with the infrastructure to trade on exchanges in the US and Europe with ease face struggles when breaking into new markets

The challenges of trading in emerging markets

An effective trading operation setup can be tricky and costly for trading firms to achieve. The challenges are varied, and before a firm can even start navigating the complexities of a proper trading infrastructure, there are regulatory considerations, language barriers and local knowledge and expertise obstacles to overcome. 

However, if a trading firm can effectively overcome these, as well as the intricacies of setting up a proper infrastructure with low latency and optimal communications, they can reap significant rewards in markets like Mexico, and gain an early advantage over competitors.

BSO’s low latency solutions for connecting traders to the Mexico Stock Exchange

So how can trading firms tap into opportunities on the Mexico Stock Exchange with minimal risk and capital investment? With an experienced network infrastructure partner that knows how to best access emerging markets. At BSO, we’ve been providing trading firms with reliable, secure, low-latency access to some of the world’s most difficult-to-reach markets for over 15 years.

We recently upgraded our route into Mexico City, making us the fastest low-latency connectivity provider to the Mexico Stock Exchange for trading firms across the US and the world. Our position in the region is further strengthened by a  PoP in McAllen Data Center in South Texas – BSO’s “Gateway to Mexico”, as well as through an additional route upgrade to the Brazilian Exchange.

These network connectivity expansions and upgrades, along with a strategic partnership with EllaLink – the express optical platform connecting Europe and Latin America, give BSO customers unrivalled access to the Mexico Stock Exchange. And rest assured, our chosen routes are constantly being optimised to achieve the lowest latency possible, consistently.

Fast track your trading firm’s access to the Mexico Stock Exchange

For any trading firm to capitalise on the new opportunities emerging markets have to offer, they need to partner with a suitable connectivity infrastructure provider who can help them overcome the barriers to entry they face. 

At BSO, we’ve built a strong reputation for understanding the nuances of emerging markets around the world. When it comes to your trading operations infrastructure, we do all the heavy lifting for you. From hosting your equipment to connecting you to the exchange, testing latency back to the PoP and giving you access to historical data, our robust and reliable solutions enable you to access the Mexico Stock Exchange to start growing your business in the region quicker. 

Learn more about our global connectivity network, or talk to our infrastructure experts to see how BSO can help your business break into the Mexican market.