Bolsa Institucional de Valores (BIVA), the new Mexican stock exchange initiative, will use Nasdaq’s X-stream trading technology and SMARTS surveillance system, in a bid to increase transparency and maintain market integrity.
BIVA is in the process of seeking approval from the Mexican Ministry of Finance, but according to Central de Corretajes, the holding company backing BIVA, the exchange is in line with the financial reform, which was recently approved by the Mexican government.
Fernando Perez Saldivar, CEO of BIVA, said: "We see this new partnership with Nasdaq as a crucial part of successfully launching BIVA and giving Mexico's financial sector the boost of liquidity and world-class technological infrastructure it absolutely deserves."
He added: "Mexico has the potential to become one of the world's top ten economies. By becoming the second exchange in the country, BIVA is keen to support our country in achieving this goal."
The new stock exchange is intended to lead to benefits such as more technological innovation, market continuity, increased liquidity, lower execution costs, more trading alternatives, and a more attractive environment for initial public offerings.
All single securities that are currently traded in Mexico will also be tradable on BIVA from its first day, and new and existing issuers will be able to choose the preferred exchange for their primary listing.
Lars Ottersgård, executive vice president and head of market technology at Nasdaq, said: "Nasdaq has always been a proponent of marketplace diversification and increasing sources of liquidity, which benefits investors and market participants alike, as well risk mitigation requirements driven by the regulators.”
“Operating our market technology will give BIVA the international credibility and join a long list of the world's most powerful exchanges running on Nasdaq systems."
X-stream is currently used by 30 marketplaces around the world, while Nasdaq’s exchange technology is in operation in more than 100 marketplaces spanning the Americas, Europe, Asia, Australia, Africa and the Middle East.
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