Name
Global FinTech Guide
Country _ Name
Mexico
SectionTitle
Trading platforms / social trading platforms / signal following
Body
FinTechs belonging to this category operate trading platforms or online marketplaces for investment opportunities or certain financial contracts – e.g. securities, factoring etc. and sometimes furthermore provide contact to financial experts and tools for the decision-making.

FinTech-signalling and social trading platforms provide users with the opportunity to exchange opinions on financial investments and offer signal providers and traders the possibility to make their securities portfolio publicly visible. This way the portfolios can be linked to and followed by other traders via the platform automatically, so that the trading and investment strategy of the followed traders can be copied.

The platform often cooperates with a financial services provider or a credit institution where both the trader and the follower hold their securities accounts, and which execute the orders both of the trader and the follower and to which the platform passes on the trading decisions.

Introduction

Attitude of the country towards trading, social trading or signalling platforms

Trading, social trading or signalling platforms are uncommon in Mexico. The available offer of such entities is offered by stock market affiliate entities, with an unfriendly user experience and directed to a sophisticated market.

Such entities are allowed to perform the following services: 
  • Disclose, through automated platforms, price information to process requests or orders to perfect transactions with securities;
  • Provide information related to securities positions; and
  • Render services related to automated communication platforms used to disclose securities positions.

Legal affairs

Obligations and requirements to provide trading, social trading or signalling platforms described above

The incorporation and operation of a trading, social trading or signalling platform requires an authorisation granted by the CNBV. Requirements include (i) a complete disclosure of the ownership structure; (ii) an authorisation of the manuals and policies to be implemented by the entity; and (iii) a vetting of the technology infrastructure to be implemented by the entity. 

Ongoing regulatory requirements are not increasingly burdensome. There are no financial reserves required to operate a trading, social trading or signalling platform.

Additional comments regarding the legal situation for trading, social trading or signalling platforms or what FinTech’s must be aware of in this business area

There is a limited offer of local social trading platforms. Considering a small local stock market, and the fact that investors are able to invest in offshore securities offered through the Mexican Stock Market, investors would typically use offshore signalling platforms for their social trading needs.

Economic conditions

Market size for trading, social trading or signalling platforms and biggest companies in this business area

The market is extremely limited. There is not enough public information available to provide an accurate indication of the biggest companies and their market share.

Additional comments regarding the economic situation for trading, social trading or signalling platforms or what FinTech’s must be aware of in this business area

N/A.

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