Mexico is expected to move swiftly on new hedge fund regulations following the appointment of two senior financial officials, Maria del Carmen Bonilla as deputy finance minister and Angel Cabrera as head of the National Banking Commission, according to a report by Bloomberg.
The report cites Maria Ariza, CEO of Mexico’s second-largest stock exchange, Bolsa Institucional de Valores (Biva), as saying that the new regulations, which build on legislation passed in late 2023, will provide a legal framework for hedge funds in Mexico, allowing strategies such as leverage and short selling. Ariza said the rules are designed to stimulate investment in local capital markets, where liquidity has historically been constrained by a limited number of institutional investors.
Biva, which launched in 2018 to compete with the Bolsa Mexicana de Valores, has captured up to 22% of stock trading volume this year. The exchange is actively promoting Mexico’s capital markets internationally, hosting events like the annual Biva Day in New York.
Mexico has also introduced legislation to simplify listings for smaller companies, allowing them to bypass lengthy regulator approvals. However, adoption has been slow as brokers update internal procedures to work with the new framework. Ariza highlighted the need for a broader ecosystem of asset managers and specialised funds to bridge the gap and encourage participation in these markets.
