Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Mexico Exchange CEO Fined for Failing to Disclose 2009 Talks

Dec. 16 (Bloomberg) -- Bolsa Mexicana de Valores SAB Chief Executive Officer Luis Tellez was fined by the nation’s securities regulator after failing to disclose talks on a partnership even as the stock-exchange operator’s shares surged.

The National Banking and Securities Commission fined Tellez because Bolsa Mexicana delayed in releasing relevant information in August 2009, the company said in a statement today. The fine was the minimum amount required under the law, it said, without disclosing the figure.

The fine is related to Bolsa Mexicana’s 2010 agreement to sell a stake to CME Group Inc., owner of the world’s largest futures market. Mexico City-based Bolsa Mexicana disclosed that it was in talks with CME on Sept. 7, 2009, following an 11 percent surge in its shares over the previous seven trading days.

“This isn’t an issue for just one company,” said Elizandra Cardoso Azcoitia, an analyst with Grupo Financiero Interacciones in Mexico City. “It’s a problem for the Mexican market. Information is filtered in the Mexican market, and in other markets too, but it’s a bit more lax here.”

Bolsa Mexicana will create a working group that will determine a process by which the company should disclose sensitive information in the future, Tellez said.

“We respect their opinion,” Tellez said of the securities regulator today in a phone interview. “It’s always complicated to issue a statement when you have a possible partner on the other side.”

Company officials weren’t involved in the rise of Bolsa shares before the talks were disclosed, he said. A banker was fined earlier by the securities regulator for sharing information on the subject, he said, without providing details.

Bolsa Mexicana gained 1.5 percent to 23.26 pesos at the close in Mexico City before the fine was announced. The shares have dropped 10 percent this year.

To contact the reporters on this story: Jonathan J. Levin in Mexico City at jlevin20@bloomberg.net; Crayton Harrison in Mexico City at tharrison5@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.