By Anthony Harrup
MEXICO CITY--Index provider S&P Dow Jones Indices is joining forces with Mexico's stock exchange operator Bolsa Mexicana de Valores SAB (BOLSA.MX) to license and develop local market indexes, including the benchmark IPC stock index, in an effort they expect will foster global interest in the market.
The agreement signed late Thursday follows others in Latin America for S&P DJI, including one earlier this week with the Brazilian exchange BM&Fbovespa.
"We see the region as a whole as being an interesting area for us. It's still much earlier days than say Europe and Asia, but growing quite nicely in terms of the sophistication of the investors," S&P DJI Chief Executive Alex Matturri said in an interview.
Part of S&P DJI's strategy has been to expand through partnerships with local exchanges, and Mexico is probably one of the more sophisticated markets in Latin America with an extensive pension fund system already investing in exchange-traded funds, he said. "It's an attractive market on its own."
The Mexican stock market has around 130 listed companies, with a capitalization at the end of 2014 of $486 billion. The IPC index measures the 35 most-traded stocks on the market.
The local exchange currently calculates around 200 indexes, and has 15 tracking funds linked to its indexes.
S&P DJI, part of McGraw Hill Financial Inc. (>> McGraw Hill Financial Inc), will gradually take over calculation of the indexes, and will be responsible for commercial licensing of them under a revenue-sharing arrangement. The Mexican exchange will continue calculating real-time index data.
Local market indexes will be co-branded as S&P BMV. Co-branding helps local exchanges to gain global recognition, Mr. Matturri said.
Write to Anthony Harrup at firstname.lastname@example.org