Mexican broker proposes competing stock exchange
MEXICO CITY Oct 29 (Reuters) - A Mexican brokerage on Thursday said it would seek permission to organize and operate a new stock exchange, the first to compete with the country's established bourse.
The proposed Bolsa Institucional de Valores would take advantage of Mexico's recent financial reforms to offer an alternative with cheaper transaction costs, greater liquidity and technological innovation, according to the brokerage, Cencor.
The country's sole stock exchange, Bolsa Mexicana de Valores , lists the likes of America Movil, the telecoms company controlled by billionaire Carlos Slim, and cement maker Cemex.
Cencor said it believed competition between exchanges could add an extra 30 percent of growth to the stock market.
Still, many Mexican companies have been reluctant to expose themselves to the greater scrutiny of going public, which raises questions about how viable a second stock exchange would be. (Reporting by Veronica Gomez; Writing by Anna Yukhananov; Editing by Lisa Von Ahn)
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