Video summary

¿Qué es el SIC?

Main summary

Key takeaways

Finance

What the SIC (International Quotation System) is

  • The International Quotation System of the Mexican Stock Exchange (BMV) allows Mexican investors to trade foreign-listed shares quoted through Mexico.
  • Implemented: 2003
  • Initial universe: 30 companies that were in the Dow Jones at that time.

Growth / market share (transaction share on BMV)

  • 2013: 20% of transactions were SIC/global-market related; 80% were national issuers
  • 2020: SIC/global-market grew to 52% of transactions

Count of instruments / issuers mentioned

  • 1,245 SIC shares
  • 1,194 national issuers (as referenced in the video)

Finance-specific advantages cited

  1. Tax treatment advantage (relative to dealing abroad)

    • With SIC, the tax system aligns with the local (Mexican) market.
    • If investing via a foreign broker or abroad directly, investors must follow that country’s tax rules (the speaker notes Mexico’s tax rate can be lower than the US).
    • Local brokers can issue a tax declaration/withholding-related certificate, which may simplify filings; foreign exchanges/brokers may not provide the same withholding certificate.

  2. Diversification

    • Provides access to sectors/countries not well represented by Mexican issuers (example: technology).
    • Enables investing in companies “from other parts of the world” while trading through the Mexican market.

  3. Same corporate/equity rights as local investors

    • The speaker states SIC investors have the same rights to dividends as other foreign investors.
    • If a company declares a dividend, SIC investors can collect it with the same corporate and equity rights.

Disadvantages / key trading considerations

  • Lower liquidity / trading volume risk
    • The speaker compares Apple trading volume in the origin market vs. the SIC market (Mexico).
    • Example numbers (for April 20):
      • Origin / US market: a little over 94 million shares
      • SIC / global-market in Mexico: 12,181 shares
    • Impact: Lower volume can be a drawback depending on strategy and the need for liquidity.
    • Caution: Check the specific SIC volume for the ticker you want to trade and confirm it’s sufficient for your operational needs (timing, trade size, horizon).

Instruments, tickers, sectors, and investable universe mentioned

  • The video references “7EF shares” available on the BMV website (as written in the subtitles).
  • The explanation is that each SIC entry includes:
    • Ticker symbol used on the Mexican Stock Exchange
    • Company name (registration key)
    • Listing date
    • State / country of origin
    • Original exchange (examples listed)

Examples / origins / exchanges

  • Example company used for volume comparison: Apple
  • Countries/origins explicitly mentioned: Denmark, Sweden, China, Germany
    • The speaker also references “U.S. companies” as most common.
  • Original listing exchanges mentioned:
    • London Stock Exchange
    • Hong Kong Stock Exchange
    • Tokyo Stock Exchange
    • German Stock Exchange

Costs / fees mentioned (and disclosures)

  • No extra cost to operate the SIC itself.
  • Trading costs come from the brokerage firm’s commissions for buys/sells (the speaker notes these relate to SIC / “Index of Capital Gains,” as worded).

Exception: W-8 form fee by some brokers

  • Example: GBM charges $75 + VAT (total described as $84 USD equivalent).
  • The W-8 is described as important to avoid double taxation.
  • The speaker suggests that with proper documentation, the broker can avoid US withholding because SIC operations route through Mexico-side processes.

Methodology / step-by-step framework shared

This is not presented as a formal investment methodology; it’s an operational checklist:

  1. Use the BMV website to search the SIC/global market listing.
  2. Download to Excel to review:
    • SIC ticker
    • Company name / registration key
    • Listing date
    • Country of origin
    • Original exchange
  3. For a target ticker:
    • Check trading volume/liquidity in the CIC/SIC listing
    • Confirm it fits your intended operation type and timeframe
  4. Review broker policies and potential W-8 form costs before trading.

Key explicit recommendation / caution

  • “Check exactly what volume you’re getting and if it’s sufficient” for your trading strategy.
  • Also review broker fees and execution timeframes to ensure the plan matches your investment horizon and needs.

Disclosures / disclaimers

  • The subtitles do not include an explicit “not financial advice” disclaimer.

Presenters or sources

  • Presenter: Not named in the subtitles (the speaker refers to themselves generically as the channel host).
  • Sources referenced conceptually:
    • BMV (Mexican Stock Exchange) website for SIC listings
    • Dow Jones for the initial SIC universe in 2003

Original video