BULLS & BEARS
TBY talks to Jaime Ruiz Sacristán, President of Bolsa Mexicana de Valores (BMV), on the exchange's performance, investment opportunities provided by Mexican energy reform, and strategies to ensure the listing of SMEs on the stock market.

BIOGRAPHY
Jaime Ruiz Sacristán has more than 35 years experience in the financial and banking sector, where he has held management positions of high responsibility. He is founder and Chairman of the Board of Banco Ve por Mas, a position he has held since July 2003. He was Director General of the companies that joined Grupo Financiero Bital. He also played a key role in the purchase of the bank by Prime Group. In the beginning of his career, he held important responsibilities in Banco Mexicano Somex and Citibank Mexico.The Mexican Stock Exchange (BMV) reported a slight rise in its main index in 2014. What is your assessment of the BMV's performance, and what is your outlook for 2015?
We have lower worldwide growth expectations for 2015, especially for emerging markets and certain countries in the Eurozone, due to the sharp drop in oil prices, Greece's still fragile debt situation and global expectations of higher interest rates in the US. There was modest growth of the Mexican Stock Exchange in year 2014. Even though we observed less trading activity during 2014 measured by the average daily trading amount, the good news is that the BMV has seen its trading activity improve by 20% in February and in similar fashion during the month of March of this year.
What impact do you expect the energy reform to have on the performance of the BMV over the coming years, and what steps does the BMV plan to take in order to capitalize on it?
Energy reform opens up new investment alternatives for companies in the energy sector. These companies will eventually need to define their funding alternatives and we think the BMV could offer such alternatives through our current products such as equity, CKDs, and securitizations. These reforms also provide the BMV and its capital market with the opportunity to create and develop new local products that have been successfully proven in other markets such as Master Limited Partnerships in the US. Together with local authorities, we are analyzing the possible regulatory and tax environment for its development.
Mexican SMEs make up the majority of companies in Mexico. What strategies has the BMV taken to facilitate listing such firms on the stock exchange?
The challenge we face in raising the number of listings mainly concerns eradicating outdated attitudes regarding the size of the company—many still hold a bias towards smaller companies—information disclosure, corporate governance practices, fear of losing control, and cost and excessive regulation. In recent years the BMV and certain market participants have been undertaking promotional efforts to encourage a paradigm shift in perceptions, and clarify the advantages of being a listed company, such as raising capital, inculcating a positive image, creating market value, and institutionalization, among others. Additionally, we have reduced our quantitative requirements, and any company with a paid-in capital of over $8 million can become listed. The financial reform encompassed in the Securities Market Law created new figures such as SAPI Bursátil and the Qualified Investors Offer (Oferta Dirigida a Institucionales) that make access easier for mid-sized companies.
A major challenge the BMV faces is current volatility of the global economy. What strategies will the bourse take to cope with this challenge?
All other economies and exchanges are suffering from current volatility, due to Central Bank monetary policy decisions. Market volatility has been evident since the 2008 crisis, but we hope that some windows will be open to allow new companies—especially mid-sized firms—to pursue the IPO route. We also think that by developing new products and financing alternatives for potential issuers and offering a wider range of investment alternatives we could help investors diversify their portfolio and see better risk-return ratios. And additionally, by promoting our derivative market Mexder and its hedging alternatives, we can offer both issuers and investors options to reduce market risk.
You were appointed as the President of the BMV in late 2014. What are your main priorities for the coming years?
As Grupo Bolsa's main activity is to provide state of the art infrastructure (systems, rules, procedure, etc.) in the various markets (equity, debt and derivatives) and segments (pre-trade, trade and post-trade services), it is our priority to increase efficiency in providing those services to brokers, issuers and investors.

TABLE OF CONTENTS
Interview
José Antonio Meade Kuribreña, Secretary of Foreign Affairs, Mexico
TBY talks to José Antonio Meade Kuribreña, Mexico's Secretary of Foreign Affairs, on its ambitious foreign policy agenda, the future of trade with Asia, and its role in facilitating cooperation between its neighbors.
read articleFocus: Financial Reform
Prudent and Progressive
Broad based financial sector reform, in step with that in other key economic sectors, seeks to improve the credit climate and streamline the financial system to better serve the Mexican public and SMEs through a more available, yet secure credit mechanism, while reassuring banks and financial institutions against risk.
read articleInterview
Jaime Ruiz Sacristán, President, Bolsa Mexicana de Valores (BMV)
TBY talks to Jaime Ruiz Sacristán, President of Bolsa Mexicana de Valores (BMV), on the exchange's performance, investment opportunities provided by Mexican energy reform, and strategies to ensure the listing of SMEs on the stock market.
read articleInterview
Pedro Joaquín Coldwell, Secretary, Energy (Sener) of the United Mexican States
TBY talks to Pedro Joaquín Coldwell, Secretary of Energy (Sener) of the United Mexican States, on the correlation between market transparency and efficiency, new programs and regulations to secure energy stability, and efforts to diversify the national energy market.
read articleInterview
Juan José Guerra Abud, Secretary, Environment and Natural Resources (SEMARNAT)
TBY talks to Juan José Guerra Abud, Secretary of Environment and Natural Resources (SEMARNAT), on green investments, the environmental significance of the National Development Plan 2013-2018, and Mexico's goals to diminish greenhouse gas emissions.
read articleInterview
Xavier García de Quevedo, Executive President, Infrastructure Divison, Grupo Mexico
TBY talks to Xavier García de Quevedo, Executive President of Infrastructure Divison, Grupo Mexico, on the evolution of the Mexican mining industry, weathering the fall in metal prices, and the Buena Vista project.
read articleInterview
Abraham Shabot, Vice President & Latin America General Director, Innophos
TBY talks to Abraham Shabot, Vice President & Latin America General Director of Innophos, on the multiple uses of phosphoric acid, Innophos' aggressive growth plans, and the multiple opportunities offered by the Mexican market.
read articleInterview
José Manuel Gómez Vázquez Aldana, Chairman, Gomez Vazquez International GVI and GVA Arquitectos
TBY talks to José Manuel Gómez Vázquez Aldana, Chairman of Gomez Vazquez International GVI and GVA Arquitectos, on the evolution of architecture in Mexico, exiting new projects, and going global.
read articleInterview: Thor Urbana Capital
Jimmy Arakanj, Co-CEO & Founder, Thor Urbana Capital
TBY talks to Jaima Fasja and Jimmy Arakanji, Co-CEOs & Founders of Thor Urbana Capital, on transitioning from consolidation to expansion, developing in high-density locations, and investment prospects in Mexico's high-end sector.
read articleFocus: Citrus fruits
Above the lime
Mexico is the second-largest producer of lemons and limes in the world. The surge in exports to the US and Canada thanks to the NAFTA agreement, alongside a growing domestic market, have turned Mexico into one of the most important countries for citrus production.
read articleFocus: Corn-on-the-cob
Amaizing
In order to meet the domestic demand, the Mexican Secretariat of Agriculture (Sagarpa) forecasts that maize output will surge by 6% between 2014 and 2015, a trend that expects to continue in the coming years. Consequently, the nation will be able to reduce around 16% of its imports of yellow corn (also known as sweetcorn, or maize) from the US this year.
read articleFocus: Education Reform
On Hold
Over the last two years, Mexico's efforts to reform its educational system have struggled to proceed in the face of strong union opposition. However, the country lags far behind OECD standards, and a large majority of Mexicans support the president's efforts to overhaul the system.
read articlePhoto Essay: Teotihuacan Pyramids
City of the Golds
A trip to Mexico's heartland wouldn't be complete without visiting the UNESCO World Heritage site of Teotihuacan. Located just 50 km north-east of Mexico City, the so-called “City of the Gods" features a first-hand glimpse into one of Mexico's most treasured archeological sites.
read articleReview: Legal
The Letter of the Law
In 2012, Mexico witnessed a variety of reforms passed after the signing of the “Pacto por Mexico”, a December 2012 agreement struck by the country's three main political parties. Those reforms included energy, political, fiscal, and telecommunications legislation. President Enrique Peña Nieto made the reforms the centerpiece of his administration.
read article