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By Amy Guthrie and Liz Moyer
MEXICO CITY--Mexico's banking and securities regulator, the CNBV, said Friday it has authorized Goldman Sachs Group Inc. (GS) to set up a brokerage in the country.
In the creation of Goldman Sachs Mexico, Casa de Bolsa, Goldman aims to "transfer some of the activities it realizes in other countries and boost operations to convert itself into an important participant in the Mexican market," the CNBV said in a statement. The decision builds on Goldman's decades-long investment banking presence in Mexico City, and is consistent with the firm's general expansion in Latin America, says Michael DuVally, a spokesman for Goldman Sachs.
"From a sales and trading perspective, we have, over the years, developed strong relationships with local Mexican clients, but believe it's now vitally important to operate in closer proximity to these clients," Mr. DuVally said.
Goldman intends to build out the broker dealer through the first half of next year, and to be operational in the third quarter of 2013. The brokerage's focus will be on fixed income products, Mr. DuVally said.
Mexico's top brokerages in terms of operations are run by billionaire Carlos Slim's Grupo Financiero Inbursa SAB (GPFOY, GFINBUR.MX), Citigroup Inc. (C) and Spain's Banco Bilbao Vizcaya Argentaria SA (BBVA), respectively.
Combined, Mexican brokerages reported $370 million in financing margin for brokerage services in the first half of 2012, and $290 million in net profit, according to CNBV data.
Write to Amy Guthrie at email@example.com
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