The arbitration between BMV and BIVA will be marginal, according to experts

With two stock exchanges in Mexico, in which the same shares are sold, differences in the prices of the securities will be opened according to the stock market on which they are quoted. However, the specialists say that they will be small, so the arbitrage opportunities will be minimal.

"The differences will be very small because the prices will be corrected very quickly from one purse to the other Yes, there may be an arbitration but I would not see much and with great differences , so I do not see a big arbitrage because the spreads will not be very broad and we will see small differences that will adjust at the time, "said José Méndez Fabre, President of the Mexican Association of Financial Institutions ( AMIB ).

In the same vein, Inving Cortés, director of CMD Inversiones y Consultoría pointed out that the Mexican market is small and that BIVA is just beginning, so opportunities will be weak. He explained that manual arbitration is becoming more and more difficult around the world because of the technology issue.

"I see relatively complicated that a lot of arbitrations can be made, I think at the beginning.As BIVA starts to have more volume, we can see arbitrage opportunities." reality is that I think it will be very little for the small volume in general that the Stock Exchange has ", described Cortes.

In the United States, for example, several stock exchanges are listed, and some brokerage firms have routing tools where an order to buy and sell is sent and executed to the stock exchange that has the best price.

In Mexico, for arbitration to be profitable, there must be a differential which, when pays commissions between the two exchanges, is a small gain.

Irving Cortés felt that the arbitrage that may exist in the stock market will be between intermediaries, since he considers it less common than retail investors can specify it.

A market that has a strong activity of investors who do arbitrage is the exchange. In Chicago Mercantile Exchange and Mercado Mexicano de Derivados (MexDer) arbitration is done because the Mexican market is much less liquid than the US market, assured Cortes.

"We are talking here about two assets in the same place and in the same stock that should have the same liquidity," he said.

Last week, a second fellowship was created in our country, Bolsa Institucional de Valores ( BIVA ), which joins the bid of the Bolsa Mexicana of Securities ( BMV ).