In Mexico, despite the small size of the stock market, there are two exchanges operating that have the potential for significant growth, especially if the recent Securities Market Law is applied as planned. The Institutional Stock Exchange (BIVA), led by María Ariza, is taking important measures to strengthen its competitive position. According to a report by J.P. Morgan, its new fee structure makes operations on BIVA up to 30% cheaper than on the Mexican Stock Exchange (BMV), especially for passive and cross-border orders. This adjustment aims to attract more volume, taking advantage of the best execution rules that have already doubled its market share since implementation.
On the other hand, the BMV, led by Jorge Alegría, has announced that it has begun talks with financial authorities to modify its fees in order to face the growing competition in the market. These adjustments are estimated to potentially have a negative impact of between 90 and 110 million pesos on the group's revenues by 2025. Price competition is gaining momentum, and it will be interesting to see if BIVA manages to increase its presence in this market.
In another area, Banamex is celebrating the twentieth anniversary of its Financial Education initiative, a significant project previously led by Manuel Medina Mora. Although this initiative is no longer as fundamental as in the past, it remains an important area within the bank. Juan Luis Ordaz is the current head of this area, while Manuel Romo, the director, continues to support it decisively. The financial sector is coming together to commemorate this anniversary and discuss the importance of understanding financial products.
Regarding natural disasters, the devastation caused by hurricanes Otis and John in Mexico continues to be visible. The Diamond zone in Guerrero, a high-value area, is still showing the effects of Otis, while John has caused more damage to homes due to landslides and river flooding. These phenomena, which reached catastrophic categories in a short time, have had a high economic and social impact, placing them among the most costly events for the insurance sector in Mexico.
Finally, a bill is being proposed to regulate the use of artificial intelligence in Mexico City. This initiative, developed by INFOCDMX in collaboration with international organizations, aims to protect citizens' privacy against the use of data by public entities. It is expected that this proposal will help establish limits and guarantees on the use of AI by the city government, which increasingly incorporates this technology into its services. The regulation of artificial intelligence is a continuously growing topic, and the implementation of this law could be a significant step in protecting citizens' data.
