international expansion/collaboration international securities eligibility global market bmv

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International Expansion/Collaboration International Securities Eligibility Global Market BMV

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Page 1: International Expansion/Collaboration International Securities Eligibility Global Market BMV

International Expansion/Collaboration

International Securities EligibilityGlobal Market BMV

Page 2: International Expansion/Collaboration International Securities Eligibility Global Market BMV

What is the Global BMV Market?International Quotation System

Investors can trade in the Mexican Stock Exchange international securities listed

in The Global BMV Market under the International Quotation System (SIC) trading and regulatory scheme.

Listing securities in this portion of the market is only possible if they belong to

recognized foreign markets or are listed by issuers recognized by the Mexican Securities and Exchange Commission (CNBV).

Recognition is granted by the Mexican Securities and Exchange Commission (CNBV) if there is compliance with the following criteria:

Listed securities can be acquired by Mexican investors. The features and terms of listed securities are fair and consistent with local market regulation. Issuers objectives are aligned with investors view and interests.

Page 3: International Expansion/Collaboration International Securities Eligibility Global Market BMV

BackgroundMain Objective

Started in May 29, 2003 with 29 of the largest and most recognized global firms listed in the NYSE (27) and NASDAQ (2) indexes.

Its main objective is to contribute to the globalization of the Mexican Stock Market by offering an efficient alternative to trade foreign securities quoted in Mexican pesos bringing:

International assets to the Cash Market. New trading and listing opportunities for local players.o Mutual Fundso International arbitrageo Global investing by qualified investors.

Portfolio diversification and efficient currency conversion. Centralized custody of the assets through Indeval Novation, clearing and settlement trough Central Counterparty (equal treatment, like local securities)

Page 4: International Expansion/Collaboration International Securities Eligibility Global Market BMV

Indeval leads and settles abroad all the Global Market operations that are instructed by their clients including “Delivery versus payment model” which eliminates counterparty risk.

Indeval ServicesCustody, Crossborder Settlement, Corporate Events

In addition to, Indeval processes payments related with redemptions, interests and any type of dividends in a straight through processing environment (Deutsche Bank, J.P. Morgan, Euroclear y Clearstream)

In just one platform sistema (Dalí) are recorded both holding local and foreign securities, avoiding connections to different systems and facilitating the reconciliation of holding and oversight from regulators.

Page 5: International Expansion/Collaboration International Securities Eligibility Global Market BMV

Indeval makes all the processing with its Global Custodians and ICSD abroad, for obtaining tax benefit rate “0” for pension funds and 10% for other Mexican Investors on issues registered at The American Market.

On January 2014, BMV Group will initiate the Certification Process to the Internal Revenue Service of The United States (IRS) in order to become “Participating Foreign Financial Institution” (FFI) according to the new FATCA regulation.

Indeval ServicesTax Relief

Page 6: International Expansion/Collaboration International Securities Eligibility Global Market BMV

An integrated Business Line Platform

Equity Debt

As of today, BMV has listed more than 800 different securities which include NYSE,

NASDAQ, ETF´s and European ADR´s for a Total Value in Custody of USD 40 Billion.

EUROBONDS

STRUCTURED NOTES

SOVEREIGN DEBT

T-BILLS

T-BONDS

T-NOTES