Bolsa Mexicana de Valores SAB de CV Stock

Greetings, and welcome to the Bolsa Mexicana de Valores, S.A.B. de C.V. First Quarter 2026 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Mr. Ramon Guemez, Chief Financial Officer. Thank you, sir. You may begin.

Thank you. Good morning, and welcome to Bolsa Mexicana de Valores First Quarter 2026 Earnings Conference Call.

Before proceeding, I'd like to provide a brief safe harbor statement. This presentation contains forward-looking statements and information related to Bolsa that are based on the analysis and expectations of its management as well as assumptions made and information currently available at Bolsa. Such statements reflect the current views of Bolsa related to future events and are subject to risks and uncertainties.

Many factors could cause the current results, performance or achievements to be somewhat different from any future results or performance that may be expressed or implied by such forward-looking statements, including, among others, changes in general economic, political, governmental and business conditions, both in a global scale and in the individual countries in which Bolsa does business, such as changes in monetary policies, inflation rates, prices, business strategy and various other factors.

Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may vary considerably from those described herein as anticipated, estimated, expected or targeted. Bolsa does not intend and does not assume any obligation to update these forward-looking statements.

I'd like to remind participants that today's call is being recorded with a replay available online on April 23 at Bolsa's corporate website, www.bmv.com.mx. The press release and slide deck can also be accessed in the Investor Relations section in the same site. This call is intended for the financial community only, and the floor will be open at the end to address any questions you may have.

Joining us for today's call are Jorge Alegria, our CEO; Claudio Vivian, Chief Information Officer; Roberto Gonzalez, Chief Post Trade Officer; Gabriel Rodriguez, ICAP CEO; Alfredo Guillen, Managing Director of Equity Markets; Jose Miguel De Dios, Managing Director, Derivatives Markets; Luis Rene Ramon, Managing Director of Sales and Marketing; Hanna Rivas, FP&A and IR Director; and myself, Ramon Guemez.

With that, I'd like to turn the call over to Jorge Alegria.

Thank you. Thank you, Ramon. Good morning, everyone. As you are likely aware yesterday, besides the financial results, we also announced that after 18 years in the exchange and 13 years as a CFO, Ramon has decided to seek early retirement from BMV and focus on new personal and professional endeavors. I want to thank him for his many contributions during his tenure as both as IRO and CFO. On a personal note, I started collaborating with Ramon during the IPO roadshow back in 2008. So I wish him well, and I am very proud and happy to see him leave as a good friend of the Mexican Stock Exchange.

Also yesterday, as mentioned, we released our earnings results, including a detailed review of our performance in these first 3 months of 2026. To begin with, I would like to highlight strong operating results achieved this quarter. These were driven by market volatility also from international geopolitical events as well as a market that continues to show increased dynamism generating favorable effects across the entire value chain from financing to settlement and custody.

Financing activity rose by 84% in the first quarter of 2026 when compared to the same period of 2025, representing an additional MXN 105 billion of financing and reaching a total of MXN 230 billion. This is led by a 270% increase in long-term debt financing, which reached MXN 146 billion, while the number of new listings increased 200% from 11 to 33.

Additionally, we had 2 FIBRAS or REIT deals for MXN 9 billion, the new Fibra Park Life and a follow-on on Fibra Monterrey. Short-term debt listing remained constant even though the amount financed was lower than last year. The financial impact of these operations and this activity is partly reflected in a 53% or MXN 8 million growth in our listing revenues. However, we will see the largest impact next year reflected in maintenance revenues for 2027 onwards.

We now have 580 long-term programs totaling MXN 1.8 trillion, both are record numbers. And as you know, I mentioned, the revenue impact for this year is limited due to the cap we have on listing fees. This strong performance reflects issuers growing trust and highlights the role of the Mexican Stock Exchange in efficiently channeling capital towards productive investments.

In the equity market, we saw both local and global momentum with average daily trading volume and value approaching MXN 21 billion. This is over 20% when compared to 2025 and one of the highest levels in recent years. Along these same lines, activity in our CCP, CCV for equities, also grew by over 20%, both in amounts and operations cleared.

Growth was also evident in futures trading, particularly in the dollar peso contract, where the activity doubled when compared to Q1 2025. This is supported by peso appreciation and other market and volatility factors already explained.

We have continued with our efforts to list new equity contracts, joining the ranks of previously listed names such as Apple, Meta, Netflix, NVIDIA and Tesla from our SIC, cash equity trading division. But in derivatives clearing growth, this was impacted by our reduced margin deposits. So in spite of the increased trading volumes, we had a small net negative impact in Asigna because of the reduction of the margins managed.

Indeval reaffirmed its strength during the quarter, excelling in 3 key areas: assets under custody, settlements and cross-border transactions through the SIC. Assets under custody rose 14%, driven mainly by funds, pension managers and equities, reaching MXN 47 trillion. Settlement averaged MXN 11 trillion per day, and this is a 25% increase in market instruments -- in equity market instruments, reflecting the segment's dynamism.

Volatility during the period provided additional momentum to cross-border transactions of UCITS and ETF via the SIC, which grew 29% in traded value and 47% in the number of operations, consolidating Indeval's role as a key player in international market integration.

Overall, Q1 2026 was particularly solid for Grupo BMV with outstanding operating performance across multiple business lines. This confirms the resilience of our business model, which remains robust and consistent across diverse scenarios. And this performance is reflected also in our financial results as follows: Our revenues grew 7% or MXN 83 million, driven mostly by the volatility mentioned before. Growth was concentrated in Indeval, which saw a strong growth in assets under custody as explained, settlement activity and cross-border transactions.

Cash equity trading and clearing, which combined grew 19%, as explained. This is due to the daily average trading volume increased. And we are maintaining our market share of around 80% in equity trading.

Listing revenues are 53% above Q1 '25 due to the strong listing activity I mentioned. And as I said, the most important impact for this will be next year reflected as maintenance revenues.

In derivatives, we saw strong performance in MexDer with the peso-dollar contract driving revenue growth of 24%. However, reduced margin deposits are affecting a little bit revenues in Asigna.

SIF ICAP's good results are worth mentioning. In Mexico, revenues grew 12%, and we had very good results in our bond and on our D2C desks. While in Chile, even though the revenues are down, we had a very, very strong activity in March.

Expenses are growing by 10%, led by personnel and technology costs, both of which reflect investments in our strategic projects made last year. This expense level is in line with our plans for this quarter, and the growth rate is also in line with our expectations, which we have shared with you in the past, along with the investments in our strategic projects where we continue and will continue with our cost control efforts across the company.

CapEx for this quarter was MXN 41 million and not because we are slowing down in any way, but because of the timing of the payments to be made in our CapEx plans for this year. With this, we have an EBITDA of MXN 685 million, 6% above last year, while the margin is 56.5%, 1 percentage point below. To properly analyze this number, we have to take into account the appreciation of the currency, almost MXN 3 versus Q1 of 2025. This is an impact of around MXN 40 million in our EBITDA.

Our net income was MXN 437 million, same as last year. And the difference between the EBITDA growth and the flat net income is explained by the lower interest rate income. Interest rates, as you may recall, for the quarter fell from 10% last year to 7% this year.

Looking ahead, our priority for 2026 is the execution of our strategic projects that will strengthen our infrastructure, broaden our product portfolio and deepen our integration into global markets.

Building on this priority, I would like to share progress on the 2 main initiatives scheduled to release -- to be released by year-end, the new derivatives market platform and the new repo clearing segment. The derivatives platform is a transformative project for our group. It integrates MexDer operations, Asigna clearing, market surveillance and a new data offering, all supported in the cloud.

Execution follows a defined plan. Technical testings begin in June and will be followed by functional testing with market participants in September. This will progress from isolated trials to comprehensive system-wide validations. The project is set to conclude on Q4 2026 and go live on Q1 2027. Currently, we have working groups with trading firms and clearing members, which are addressing anticipated changes, the challenges, the implications and market alignment.

The repo clearing segment will be incorporated into our CCV service portfolio. End-to-end industry testing is scheduled for Q3 2026 as well with design completion targeted for December this year. This initiative, the repo clearing follows the same agile methodology applied to other projects. So we expect to have a much faster adoption in this segment because of the reduced capital requirements and benefits it will bring to market participants.

Both of these projects are supported by a dedicated project management office and multidisciplinary teams, including experts in operations, products, technology and data, alongside representatives from compliance, internal audit, finance and legal. So this structure ensures orderly execution, comprehensive risk and opportunity assessment and a strict adherence to corporate governance standards.

So beyond these initiatives, we are also advancing on our broader portfolio of projects within the digital evolution program. Altogether, they represent a comprehensive transformation for BMV Group, modernizing our infrastructure, expanding our reach and reinforcing our role as the backbone for Mexico's financial system. With discipline, innovation and a clear vision, we are shaping the future of market infrastructure and creating lasting value for all participants.

With that, I'll conclude our remarks for the quarter. We remain focused on executing our priorities with discipline, advancing our key initiatives and adapting to evolving market conditions. Thank you again to all of you for joining. And together with my colleagues, we are more than glad to address any questions you may have. Thank you very much again.

[Operator Instructions] Our first question comes from the line of Ernesto Gabilondo with Bank of America.

Ramon, we will miss you and good luck in your next chapter. So I have 3 questions from my side. I will do the first one, and then I can elaborate the other 2. My first question will be on your revenues. You mentioned in the press release that revenues benefited because of the volatility experienced during the quarter. And you do not discard this to moderate in the next quarters. So having said that, how do you see revenues evolving this year? Should we expect around mid-single-digit growth? And what will be the drivers behind your revenues?

This is Jorge Alegria. Yes, you're right. I mean I think it's fair to say that this quarter, we have seen quite a lot of volatility and changes, I mean, globally and locally as well, interest rate movements, FX. So that has impacted positively our volumes. Also, we saw very strong issuance activity due to interest rate movements as well as FX helping domestic participants to be more active in the peso market than in the U.S. market. So this is something is good for us. We cannot assume that will continue. We never know. So I guess here is Ramon, but I think, yes, you're right in mid-single digits is a fair assumption.

Yes, that's correct, Ernesto. We had a very good month of March. Last year, revenues were relatively stable, around the MXN 1.1 billion. So around mid-single, I think, is good. It also depends on the volatility we get. If we get more help from volatility, you could see that increase to high single.

Perfect. Perfect. And then my other 2 questions. The second one is also related. So how should we expect the evolution of revenue growth versus expenses growth given your investment plan, how are you seeing both of them? Should we expect OpEx to be a little bit higher versus revenue growth? Any trend that you can guide us could be very helpful.

And then my last question is in terms of regulation. I don't know if there's any update on discussions related to a potential market still related to hedge funds? And also if there is any other type of regulation in the pipeline?

Expenses, we are projecting them to grow at high single digits, Ernesto. So depending on how revenues perform this year, as we have said before, we would be expecting a slight decrease in margins, just like we saw this Q1.

We are working very close to authorities because mainly -- because of our project, Ernesto, and we have heard again quite often that the authorities, mainly the treasury and the Mexican Securities Commission are moving now faster to the hedge fund regulation. So hopefully, we will see something this same year. As you know, the law is there. The law was approved. So it's the secondary market ruling. We are working together also with the Mexican Brokers Association on this. And yes, we agree this will be great news on the hedge funds to increase the market participants. I'm not aware of any other rules coming on the market from the regulators.

Our next question comes from the line of Daniela Miranda with Santander.

Congrats on the results. Just a very quick one from my side. Just wondering if you could help us better understand the sensitivities affecting performance. On one hand, for financial income, how should we think about the impact of further rate cuts and lower cash balances? And how much additional downside could we expect on that line? And on the other hand, FX appreciation had negative impact across your P&L. So how should we think about FX sensitivity going forward? And do you hedge any of these exposures?

Thank you, Daniela. Interest income, it's going to be impacted by the reduced interest rates on a year-on-year comparison. So the best way is just straight off the cash balance. It's not all in Mexico, but I think that's the best approximation you can have, just the interest rates to the cash balance.

On FX, we have 2 impacts on the -- first of all, on the P&L, we have for each peso, the currency appreciates we get around MXN 50 million or MXN 60 million less in EBITDA. That means our operation is long U.S. dollars. So for us, in the short term, a peso depreciation helps our P&L. Roughly, as I said, MXN 1 is equivalent to MXN 50 million, MXN 60 million on a full year basis. On the balance sheet, we started hedging this quarter. We had a bit of an effect still, but we'll continue with our efforts to reduce the impact on the balance sheet, on the difference between assets and liabilities in the balance sheet.

Our next question comes from the line of Edson Murguia with SummaCap.

Specifically about the expenses and the investment projects. Just trying to figure out and join the dots about CapEx. Those projects that Alegria mentioned it in the call are the main one or related to this increase in expenses and the CapEx?

And my second question is, could you give us more detail about the deferred income? It seems odd to try to understand why this quarter increased MXN 525 million.

Edson, yes. Our main projects are the ones Jorge mentioned, this technological evolution, upgrading basically all of our technology in derivatives, trading and clearing, in post-trade, the cash equity CCV, the Indeval, having the new technology for the bond and the repo CCV, new data and moving to the cloud. Those are our main projects. That's where our expense is concentrated on those efforts, and that is the majority of the CapEx. On your second question, I didn't quite get it. Could you repeat it, please?

Yes. This quarter, there is a MXN 525 million in deferred income in the balance sheet. But historically, the deferred income, it's a low single digit between 8, 11.

No, what you have seasonality, Edson. The maintenance fees from issuers is collected in advance. We have seasonality in the cash balance. You usually have an increase in cash balance in Q1 because we collect all these annual fees on a onetime basis in Q1. What you collect, we recognize the income on a linear basis throughout the year. The net of the balance is in deferred income. So if you look at historical, you're going to see this deferred income and it goes down every quarter to get very close to 0 for -- towards Q4.

[Operator Instructions] Our next question comes from the line of Carlos Gomez-Lopez with HSBC.

First of all, thank you for your service of many, many years, Ramon. You have been the face of continuity and good humor from Bolsa. So we will all miss you enormously, and I'm very sad to hear that we will no longer be talking to you.

Thank you, Carlos.

I have -- in the spirit of an analyst, I have 3 questions. The first one is to Jorge, what are you going to do without Ramon because that's a difficult decision to make.

On the numbers thing, last year, you had a margin of 56.2%. And I want to understand correctly, you expect that margin to go up or down this year because even with single-digit -- high single-digit revenue growth, I mean, given your expenditure plans, it would seem that the margin should go down rather than up. So we would like to understand that.

And finally, we understand that you have started to hedge the foreign position on the balance sheet. We understand that. Does that also impact the income statement and that is why perhaps the impact of the appreciation of the peso has not been as extreme in this quarter?

Thank you, Carlos. On a full year basis, EBITDA margin was 57% last year. And as I said, yes, it could go down. We need to have volatility to maintain the margins. If we don't have volatility, margins could be coming down.

On the hedging efforts, what we're doing is managing our long position. It means trying to sell the dollars that we have at the end of the month. We're not, as of now, doing any derivatives or any derivative or efforts on that side. It's just trying to net the balance to 0.

Okay. So that shouldn't have an impact on the P&L?

No, it should not.

Our next question comes from the line of Yuri Fernandes with JPMorgan.

Thank you, Ramon, for all the help those years. Good luck. I have a question regarding -- just a follow-up on CapEx. If anything has changed for your previous guidance of MXN 500 million, given this quarter started a little bit soft. I think you are doing less than 10% of the budget for the year. So just checking if -- I know the investments are still there and the modernizations are still there, like the big scheme of things, but if maybe stronger peso, I don't know if maybe the CapEx budget will be less than the MXN 500 million you mentioned in the previous call.

And then a second question regarding competition on equities. I think like this was a quarter that -- I know this is volatile, it change all the time, but you gained some market share. So just on competition dynamics and if anything has changed between you and the competitor?

Thank you, Yuri. No, CapEx is still expected to be around MXN 500 million. We had a slow start. As Jorge said, it's basically the payment -- the timing of payments. But we're still expecting to finish the year close to MXN 500 million in CapEx. And for competition dynamics, I'll let Alfredo Guillen take that one.

Yuri, yes, we have been experiencing improvement in market share, explained by some initiatives that were requested to us by our brokerages, mainly 2 initiatives. First, the improvement in block trading dissemination in real time, which is very important for traders to make decisions, and we were lacking detailed information on that. And then we also were requested an improvement in trading reports that are now released by our central counterpart. And this information now includes block trading. So this gives brokers accurate information regarding their place in the equity markets and therefore, driving more trades to the Mexican Stock Exchange. So basically, we experienced better information to the market and better decision-making regarding the depth of the books and trading activity at the Mexican Stock Exchange.

Our next question is a follow-up from the line of Carlos Gomez-Lopez with HSBC.

Just a follow-up on the dividend. Have you decided what dividend level you will recommend? And what should we expect in terms of buyback for the year?

The dividend is what we had said, Carlos, MXN 2.50 per share. That's going to be proposed for the general assembly, which is going to be next Monday.

Next week.

Next week. And for the buybacks, we don't have a fixed amount. As we said, our purpose was to give back 80% of net income. The dividend amounts to 70%. If the buyback does not cover the remaining 10%, we will be proposing an extraordinary dividend for Q3. So more than a specific amount for buybacks, we have a specific amount for overall capital return, which is 80% of net income from last year.

Ladies and gentlemen, that concludes our question-and-answer session. I'll turn the floor back to Mr. Alegria for any final comments.

Well, thank you very much to all for joining. We had a pretty interesting quarter. We will continue to strengthen the -- our initiatives on the technology side, keeping a very strong control on costs and expenses. I want to reiterate my appreciation to Ramon Guemez for all those years working with us. In the meantime, while we made a definitive appointment, you all will be dealing with Luis Rene Ramon, that I'm sure pretty much all of you know. He has been working for the company more than 10 years, specifically in the finance area. He was in charge of Investor Relations for many years, and he led our marketing and sales and commercial efforts for almost 2 years now for the exchange with extraordinary positive results. So he will be, in the meantime, taking over the CFO role. So I'm sure that he will have plenty of things to deal with and happy to answer your questions moving forward.

So thank you, Ramon, again. We certainly are going to miss you on a lot of things, not on your humor, definitely, but we wish you well. And above all, thank you all for your time and listening to our remarks and see you and talk to you soon, if not in the next quarter.

Thank you. This concludes today's conference call. You may disconnect your lines at this time. Thank you for your participation.

Greetings, and welcome to the Bolsa Americana de Valores Conference Call. [Operator Instructions] Please note, this conference is being recorded.

I will now turn the conference over to your host, Ramón Güémez. Please go ahead, sir.

Thank you. Good morning, and welcome to Bolsa Mexicana de Valores Fourth Quarter 2025 Earnings Conference Call.

Before proceeding, I would like to provide a brief safe harbor statement. This presentation contains forward-looking statements and information related to Bolsa that are based on the analysis and expectations of its management as well as assumptions made and information currently available at Bolsa. Such statements reflect the current views of Bolsa related to future events and are subject to risks and uncertainties.

Many factors could cause the current results, performance or achievements to be somewhat different from any future results or performance that may be expressed or implied by such forward-looking statements, including, among others, changes in general economic, political, governmental and business conditions, both in a global scale and in the individual countries in which Bolsa does business, such as changes in monetary policies, inflation rates, prices, business strategy and various other factors.

Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may vary considerably from those described herein as anticipated, estimated, expected or targeted.

Bolsa does not intend and does not assume any obligation to update these forward-looking statements. This call is intended for the financial community only, and the floor will be open at the end to address any questions you may have.

Joining us for today's call are Jorge Alegria, CEO; Claudio Vivian, Chief Information Officer; Gabriel Rodriguez, SIF ICAP CEO; Alfredo Guillén, Managing Director of Equity Markets; José Miguel De Dios, Managing Director of Derivatives Markets; Luis René Ramón, Chief Commercial Officer; Hanna Rivas, FP&A and IR Director; and myself, Ramón Güémez, CFO.

With that, I'd like to turn the call over to our CEO, Jorge Alegria.

Thank you, Ramón, and good morning, everyone. Yesterday evening, we released our earnings results, including a detailed review of our fourth quarter 2025 performance. The press release and slide deck are available on bmv.com.mx, in the Investor Relations section.

Before turning to our ongoing initiatives, I'd like to briefly frame where we are headed as a group. Our focus is clear, positioning the company as a market leader through innovation, supported by advanced technology and a stronger infrastructure that enables expansion, access to new markets and long-term value creation.

We remain committed to disciplined capital allocation that supports our strategy while maintaining shareholder returns. As mentioned and communicated since 2024, our strategic plan contemplates higher investment levels to support growth initiatives.

Accordingly, in 2025, we invested over MXN 250 million to maintain the competitiveness of our core systems and advance toward NASDAQ platforms, making the start of a multiyear investment cycle with CapEx declining from 2027 onwards. In 2026, we are planning an additional investment of approximately MXN 500 million, supporting a data-driven business, the expansion of our debt CCP, enhanced surveillance, cybersecurity, cloud migration and stronger continuity and recovery plans.

Initial deliveries are expected with the completion of the derivatives platform under the Nasdaq Eqlipse solution, followed by the repo CCP, both this same year towards 4Q '26. While executing a significant investment program, we continue to balance this investment program with our shareholder return. So we are maintaining a dividend of MXN 2.05 per share and a buyback program of at least MXN 160 million, implying a distribution of 81% of 2025 net income with flexibility to complement this objective through an extraordinary dividend towards year-end if required.

In 2026, our focus will be on the execution of our initiatives, laying the groundwork for revenue-generating initiatives that we are expecting to see generating revenues and contributing from 2027 onwards.

Let us begin also with a brief overview of the quarter's most relevant initiatives. We continue advancing on our new bond services for our CCP. November 2025 marked a significant milestone for the Mexican market with the launch of the first central counterparty for fixed income bonds. The first live transactions cleared by 5 banks through 2 interdealer brokers confirm the successful launch of the CCP. While participation is not mandatory and adoption is expected to be gradual, its introduction lays the foundation for the debt markets transition from a traditionally voice-based environment to a fully electronically centrally clear marketplace.

Experience from other markets shows the impact of combining centralized clearing and electronic trading. Mexican equities, as an example, experienced a nearly 20-fold increase in activity over 2 decades, while U.S. Treasury volumes expanded by roughly tenfold after adoption. These examples show how CCPs and electronic trading support growth across asset classes. And in this context, the Mexican bond market is a pivotal point.

With an average trading daily volume of around $6 billion, the introduction of a CCP and the shift toward electronic trading are setting the stage for higher volumes, more access and greater liquidity. Consistent with our road map, the initiative is to advance for a second phase, the repo service on our CCP. This is expected to be completed by the end of 2026. And unlike the initial phase, adoption is expected to be faster given strong market demand and benefit. With approximately USD 100 billion daily trading volumes, the repo segment materially expands the scope of centralized clearing and sets the stage of a third phase extending to securities lending.

On our data agenda, we are defining a unified data infrastructure strategy. This includes designing the target architecture to support the new trading and clearing platforms for derivatives, along with data requirements across the rest of the business. A core element is the transition from an on-premise setup to a cloud-based model, which will support advanced analytics, customizable reporting, data-driven products and coordination with MexDer and Asigna. New data product releases are planned for late 2026, aligned with the launch of the new derivatives platform.

I would also like to briefly update you on our efforts and progress in market data. As part of our long-term strategy initiated several years ago, we have focused on increasing the international visibility of the Mexican markets by reducing access barriers and bringing market information closer to global participants. Complementing this solution, during 2025, we further evolved our access model through the deployment of the global access network product, a fully virtualized colocation solution now operating in production and under this model, Bolsa provides the core access and connectivity infrastructure, enabling a scalable framework for direct market access. This architecture enables more competitive pricing, faster time to market. As adoption gains traction, the existing client pipeline supports a potential 5% uplift in market data revenues for 2026.

Turning to derivatives. We see growth potential for MexDer given that substantial share of activity in the derivatives market remains in the OTC. This creates an opportunity to keep migrating volume towards listed and clear products over time. To address this, we are focusing on 3 levers: international exposure, retail product expansion such as seeing the stock derivatives and SIC options and also supporting institutional participation through the Asigna liquidity alternative framework. At the same time, we are advancing the migration of our transactional services to Nasdaq Eclipse trading solution, which essentially -- and this is essential to provide the scalability required for the long-term growth in the listed derivatives marketplace.

As mentioned regarding the liquidity alternatives initiative for Asigna, progress is still being made. Gradual but continuous. We have 3 major banks advancing in their implementation, while regulators are working on aligning the legal framework. From Asigna side, the infrastructure is already in place and the initiative is expected to materialize in the coming months.

In parallel, equity listing activity resumed with the IPOs announced in the prior quarter materializing through Essentia, Aeromexico and Fibra Next, the follow-on transactions. This reflected an improvement in market conditions after several years of inactivity with momentum continuing beyond the quarter. Currently, there are 4 companies actively exploring potential IPOs on a confidential basis.

In parallel, the IPC index has reached historical highs and equity valuations have improved. So together, all these factors reflect the strengthening equity market conditions and growing interest in public markets as a source of capital.

Beyond the recovery in equity listings, market activity is also strengthening across other asset classes with record levels in 2025 as total financing reached MXN 755 billion, a 24% increase compared to 2024. Demand for debt listings is increasing across short- and long-term maturities, supported by a pipeline of approximately more -- MXN 80 billion for the first 2 months of the year with high-profile transactions that increase visibility. Most of these issues are expected to be listed on BMV.

Finally, structured products are also showing strengthening activity with higher demand for listed warrants driven by private banking and wealth management participation. Following on, the simplified listing initiative remains an ongoing long-term initiative. The same confidential company is still in process alongside with our ongoing efforts to promote the regime and build market awareness. This is a constant effort that -- with adoption expected to be gradual.

Turning to our equity fee schedule. And as noted last quarter, we received the regulatory authorization to adjust our fees. However, implementation remains our discretion with no requirement regarding timing our application. Currently, we are not planning any changes on our fees.

Let me now move to our key financial highlights in the following slides. Please keep in mind that all figures are expressed in Mexican pesos. On Slide 3 and 4, for the key 2025 financial highlights, Q4 2025 revenues were flat at MXN 1.1 billion, while operating expenses rose 15% due to our accelerated strategic investments. This pressure operating leverage, driving a 9% EBITDA decline to MXN 608 million and with a 900 basis point margin contraction to 54%.

Net income fell 20%. And at the full year level, revenues grew 7% to MXN 4.5 billion, Operating expenses increased 11% and EBITDA rose 5% to MXN 2.5 billion. Despite the investment cycle, margins remained strong at 56%, only 198 basis points below 2024 as expected. Net income showed resilience, easing 2% year-over-year. Taken together, Q4 reflects the timing of our accelerated and planned investments, not a change in the business structural profitability. The full year results provide the right lens with solid revenue growth, higher EBITDA in absolute terms and structurally strong margins.

Let's turn to the next slide, please. Revenues by business line across both 4Q 2025 and the full year. Top line behavior followed the same pattern and was driven by revenue mix. Growth consistently came from equity and derivatives trading, MXN 7 million and MXN 4 million and for equity clearing, MXN 10 million. Information Services, MXN 19 million and capital formation were MXN 8 million. Steady growth in central securities depository Indeval of MXN 10 million, and these gains were partially offset in both periods, seeing declines in the derivatives clearing space for MXN 19 million and our OTC trading for MXN 6 million. Top line in both periods reflected a similar mix of strong growth segments and areas of softness, highlighting our model of stability of the business fundamentals.

Turning to the next slide on equity trading and clearing activity. We see on 4Q 2025 equity trading activity strengthened. Average daily trading value increased 10% versus Q4 '24. This performance was driven mostly by growth across local and global markets. In addition, global markets transaction rose 23%, reflecting higher investor participation. BMV's market share remained stable, ranging between 78% and 80%.

In the clearing businesses, revenues increased 19% in Q4 '25, reaching the highest fourth quarter level and delivering a strong year-over-year increase. Meanwhile, equity segment revenues rose 10%, reflecting a solid year-over-year recovery and remaining broadly stable compared to the previous quarter.

Let us go on the next slide to review derivatives. MexDer posted 16% year-over-year revenue growth. However, this increase was offset by a significant decline in the derivatives clearing business, resulting in a 19% increase in quarterly revenues for the Derivatives segment. Against this, trading dynamics remain active, particularly in dollar futures, where the average daily notional value increased 68% and open interest grew 1.2x compared to 2024.

Regarding margin deposits in Asigna, year-to-date average balance in 2025 decreased by 15% compared to the prior year.

On Slide 9, we can see OTC trading results moving to SIF ICAP. OTC trading revenue declined 4% year-over-year. Both Mexico and Chile experienced an appreciation of their currencies. So Mexico revenue grew 6% and Chile decreased 8%. The performance in Chile was driven by lower market interest rates combined with volume discounts.

On Slide 10, we have figures for our Capital Formation segment, where revenue increased by 6%, mainly driven by a 58% increase in medium- and long-term debt listing activity. As a result of this record-breaking issuance base, total outstanding long-term listings rose 8% year-over-year, reaching 546 issuers as of December of 2025. While the equity market has shown renewed activity, as previously noted, the debt market continues to strengthen.

In 2025, BMV financed MXN 636 billion. This represents an 8% year-over-year increase. This momentum has been further reinforced by the addition of new high-profile participants such as CFE, AMH and SAC.

Moving to the Central Securities depository. Slide 11 shows Indeval revenue increased by 3%, driven by more dynamic cross-border activity and higher assets under custody across both domestic and global markets. This is compensated in part by FX. During 4Q 2025, total assets under custody reached MXN 45 trillion, representing a 13% increase compared to our 4Q '24.

Custody volumes increased across all segments, led by a strong growth on SIC listed ETFs and debt securities. This higher level of activity was also reflected in settlement metrics with the average daily value settled increased by 4%. And additionally, following the recent retail tariff adjustment, operations in this segment grew by more than 50%.

Let's move to Slide 12 for Information Services. Information Services revenue increased 9%, driven primarily by market data, which grew 13% compared with the fourth quarter of 2024 and accounted for 72% of the total revenue. At Valmer, our quarterly revenues remained flat, while FX movements had a negative impact on our results.

Let us now take a look at our operating expenses on Slide 13 and 14. 4Q '25, the 15% expenses reflects a clear reinvestment and execution phase. As Grupo BMV accelerated its strategic initiatives and advanced its modernization agenda, expenses grew across key categories, led by personnel on $22 million, technology, $23 million and depreciation, $21 million.

The evolution of expenses through 2025 was concentrated in the same key categories, all directly linked to the implementation of the strategic plan. The expansion of teams in priority areas strengthened internal capabilities, while the increase in technology and depreciation reflects sustained investments in infrastructural renewal, particularly in storage and cyber. The expense level reached in the fourth quarter establishes the new cost baseline for 2026, which clearly reflects a phase of strategic execution and modernization.

With this, I would like to thank you for connecting today and listening to my remarks. Here and alongside with my colleagues, we will gladly address any questions you may have. Thank you very much.

[Operator Instructions] And our first question will come from Yuri Fernandes with JPMorgan.

Maybe if you can explore more a high-level guidance and view regarding the investments in technology, like the OpEx, how much should we see on growth on that line? And maybe an update on CapEx. I guess the last message for 2026 was for CapEx to increase some 50%. 50%, 75% over 2025. So just checking if we -- it was clear from Mr. Alegria that we should see more investments this year, right? But if you can provide more color, how much -- just for us to quantify this. So basically, OpEx, CapEx and maybe if you want to discuss a little bit the margins, what should we expect for EBITDA margin here for the company?

Yes, Yuri, as you say, we are expecting CapEx for 2026 to be close to MXN 500 million. It should come down for 2027. We don't have an exact number yet, but it will still be above MXN 300 million for 2027 and then decrease further for 2028. For operating expenses, we're expecting a high single-digit increase for 2026. We're expecting margins to be stable. Maybe revenues are hard to estimate. But I would say a stable plus/minus 1% for EBITDA margins. That would be our expectations for 2026.

Just on the margins, if I may, just a clarification. When you say stable or maybe down 1 point, are you referring to the fourth quarter margin of 54%? Are you referring to the full year margin around 56%? Just to be clear here.

I'm referring to the full year margin of 56%.

And our next question comes from Daniela Miranda with Santander.

Just a very quick one on financial income in 2026. I mean assuming additional 50 basis points cut in reference rates from current levels, how should we think about financial income next year or this year? Could you help us frame approximately like how sensitive is financial income under that scenario?

Daniela, we didn't fully understand, but I understand you're asking about financial income. We're expecting less according to the reduction of interest rates. So that's something that's definitely going to affect us. And we're also taking steps to reduce the variability on the FX gain loss. So you should have an impact from the reduced interest rates and less -- and we're working towards less volatility in FX gain and loss.

[Operator Instructions] And we'll go next to Carlos Gomez with HSBC.

Going back to the expenses, you ended up growing them 10.6% this year. Was that more or less than you initially expected? I think it's a little bit more. On the CapEx, can you also remind us the average life of the CapEx that you're introducing and therefore, the amortization rate? And should we expect your depreciation charges, which were up 14% this year to increase significantly in the next couple of years? And finally, can you remind us your sensitivity to exchange rate?

Carlos, the -- I would say the increase in expenses came in line with our expectations. We had -- a year ago, we had said that we expected a decrease in margins for this -- for 2025. Revenues were higher at the beginning of the year, but expenses came in line where we had expected them.

Regarding your second question, average depreciation is done between 7 and 10 years for the technological evolution program that we're calling these new platforms, we're thinking about 10 years. You should start seeing most of the impact in 2028. That's when we'll begin to amortize the full investment.

Regarding your third question, our sensitivity to the FX, as a rule of thumb because it varies depending on market conditions, it's about MXN 50 million in EBITDA for MXN 1 of depreciation. As I said, it can vary, and with the new -- it will surely vary with the new expenses that we're acquiring, which are more related to the FX. But as of now, take that rule of thumb.

Okay. So it hasn't changed. It's still a $50 million in EBITDA for the 5% move in the currency?

Yes.

And I don't think the queue is too long. So I'm going to throw another question. You are buying the systems from NASDAQ. As you have seen, because of the impact of AI, the market has interpreted that pricing for those -- that type of software is going to decrease. As an acquirer of these products of cloud services, of software services, have you seen any change in pricing over the last year that you can say is the impact of NASDAQ? And do you expect any changes in the coming years?

We haven't seen any changes. We are -- let me say, we're still in the process of ending negotiations on some of the services we're acquiring. But we haven't seen any changes, and we would love to see a decrease in some of them.

I would imagine, but you haven't so far.

Sorry. No, we have not.

And our next question will come from Ernesto Gabilondo with Bank of America.

My first question will be a follow-up in terms of FX and interest rates. Just wondering what are your expectations for the FX and interest rates for this year? And if you are evaluating any kind of hedge to mitigate the impact? And looking into the first half of this year, it seems it will be a tough comp considering the strong peso appreciation and rates. So just wondering what are you deciding to do on that?

And then my second question is also related, a follow-up in terms of your investment phase and OpEx. So just wondering, for this year, should we expect OpEx growing at a higher pace when compared to revenues? If you can provide if there will be some seasonality in expenses throughout this year? And also, can you walk us through the timing of the investments this year? And when do you think the revenues will start showing up, I think, will be very helpful.

And I also remember you were expecting Indeval to be at the cloud by 2027. So just wondering how should we expect OpEx, as you were saying, it should be declining in 2027, but maybe not at the lows that could be at 2028. Just wondering if 2027 will continue to have some of the Indeval investments or other investments in 2027.

Ernesto, we thought we were going to have to do without the pleasure of your questions. Regarding your first question, FX and interest rates, interest rates are coming down, so we're expecting less financial income there. And FX, we've been working to hedge to reduce our exposure to the FX gain loss that we have. So we're expecting less financial income and a little less impact from the FX gain loss.

For OpEx, for this year, we're expecting it to be high single digits, somewhat in line with what we're expecting in revenues. So you're asking timing, when we would expect to see -- if there's going to be seasonality in the expenses. Yes, there's always some seasonality. It's usually -- they start slower towards the first half and tend to lean a little more. We try to even the math throughout the year, but there is usually some seasonality.

We expect to see revenues from our initiatives in 2027, especially with the launching of the repo services in our CCP. We're expecting to see some revenues from the bond clearing for this year, but really nothing significant, nothing that moves the needle. So expect them for 2027 with the launching of the repo services.

And regarding Indeval in the cloud, yes, we're expecting to have our -- the new platform for Indeval towards the end of 2027. So it will be fully operational in 2028. We would expect to start seeing, let me say, some -- we'll have double expenses while we take out the old platforms and the old technology. So we would expect to see a reduction in revenues -- sorry, a reduction in expenses for 2028 and downward, at least from an overall point of view.

And this now concludes our question-and-answer session. I would like to turn the floor back over to Jorge Alegria. Please go ahead.

Thank you. Thank you very much again to everyone. We had a very, very active -- I think we may have another question, sorry.

Apparently, we have one more person lining up.

Okay. Yes. We have a question from Pablo Ordóñez with GBM.

Okay. Go ahead. I'll keep my remarks for later.

Can you hear me?

Yes, Pablo.

Just quickly, how should we think in terms of the payout for dividends and buybacks for the next 3 years? And are you considering using some part of the MXN 3.7 billion that you're still holding in your balance sheet for dividends and buybacks in this cycle of CapEx?

And also a second question is maybe if you can help us with some magnitude of how should we think of the additional revenues for the debt CCP once that you start rolling out the repos business in 2027?

Thank you, Pablo. For the dividend, this year, we're -- our distribution is going to be a dividend of 71% of net income, and we're doing a buyback of at least another 10%. This -- we will keep -- we'll try to keep our -- this cash distribution at this 80% level of net income. That's at least, let's say, our guideline. And we estimate that in spite of the investments we're doing, that's fully achievable. And this will be for next year and after that as well. We could have additional -- on buybacks, yes, but let's take the guideline as at least or around 80% of distribution.

Regarding your second question on the additional revenues from the repo services, we don't have an estimate on that yet. It's a big market. It's about MXN 100 billion in average daily -- $100 billion in daily volume. So we're still working on the fee to get that. But when we have additional information on that, we'll let you know.

And this does conclude the question-and-answer session, Jorge?

Now it's my turn again. Thank you very much. And again, this 2025 proved to be a year where we realized and started to operate on our strategic plan for the next 3, 4, 5 years. This year, we are going to be focusing on the execution of the plan, providing value to our shareholders, and we look forward for an exciting 2026 and onwards. So thank you very much, and talk to you soon.

Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect your lines, and have a wonderful day.

Greetings, and welcome to the Bolsa Mexicana de Valores S.A.B. de C.V. Third Quarter 2025 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the call over to your host, Ramón Güémez, Chief Financial Officer, please go ahead, sir.

Thank you. Good morning, and welcome to Bolsa Mexicana de Valores Third quarter 2025 Earnings Conference Call. Before proceeding, I'd like to provide a brief safe harbor statement. This presentation contains forward-looking statements and information related to Bolsa that are based on the analysis and expectations of its management as well as assumptions made and information currently available at Bolsa. Such statements reflect the current views of Bolsa related to future events and are subject to risks, uncertainties and assumptions.

Many factors could cause the current results, performance or achievements of Bolsa to be somewhat different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in general, economic, political, governmental and business conditions, both in a global scale and in the individual countries in which Bolsa does business, such as changes in monetary policies and inflation rates, in prices, in business strategy and various other factors.

Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may vary considerably from those described herein as anticipated, believed, estimated, expected or targeted. Bolsa does not intend and does not assume any obligation to update these forward-looking statements. This call is intended for the financial community only, and the floor will be open at the end to address any questions you may have.

Joining us for today's call are Jorge Alegria, Chief Executive Officer; Roberto González, Chief Post-Trade Officer; Gabriel Rodríguez, SIF ICAP CEO; and Alfredo Guillén, Managing Director, Equity Markets; José Miguel De Dios, Managing Director, Derivatives Market; Luis René Ramón, Managing Director Business Development; Hanna Rivas FP&A and IR Director; and myself, Ramón Güémez.

With that, I would like to turn the call over to Mr. Jorge Alegria, our CEO Yes.

Hello, I hope you can hear me okay. Thank you, Ramón, and good morning, everyone. I hope you are all doing well today. We released our earnings results yesterday evening, providing a comprehensive detail on the third quarter of 2025 results. Copies of our press release and slide deck are available at bmv.com.mx on the Investor Relations.

During today's call, I will first review our ongoing initiatives and then briefly comment on our financial results. Then we will conclude with a Q&A session, where we will gladly take your questions via the conference call line.

Let us begin with a brief overview of the quarter's most relevant developments, starting with equity market activity. Two new IPOs have now been confirmed in our pipeline. So Aeromexico is coming back to the market and Esentia Energy Systems is debuting. Both have announced plans to list on BMV before year-end. And additionally, 2 more equity transactions are under consideration, one potential IPO and one follow-on offering, both currently still confidential.

These transactions reflect renewed interest from the market participants following a period of limited activity. Our bond CCP, following successful regulatory audit, the CCP has been approved to operate as a central counterparty for Mexican government bonds. Participants are now finalizing preparations and the first clear of M bonds trade is expected by mid-November. This CCP launch marks a major transformation for the fixed income market in Mexico. It will enable multilateral clearing between banks and brokers, reducing counterparty risk and limiting contagion. This structure also improves liquidity efficiency by netting positions across all participants, lowering then the overall cost requirements. And additionally, it supports the transition from voice-based to electronic trading. As for the CCP service for repos, we are currently working on its design, targeting a launch by year-end 2026. Given the large size of the repo market, this service is expected to be an important source of revenues for the CCP in the future.

Turning to the equity fee schedule. You may recall that in late 2024, our competitor reduced its fees and temporarily impacting our market share. In response and to maintain our competitive position, we submitted a fee adjustment proposal to the Mexican authorities. Over time, our market share remained stable. We are within the 78%, 80% range, reflecting the resilience of our service model and the strength of our client relationships. Our revised equity trading fee is now approved, though we have not decided on implementation date for it.

In the meantime, we remain focused on market stability, operational efficiency and delivering value to market participants. In the derivative market segment, the S&P IPC index future was listed on CME, Chicago Mercantile Exchange last August, making it now available on both Mexican Derivatives Exchange, MexDer and CME. This dual listing expands access for local and international investors. Targeted marketing and commercial efforts have positioned it as a key instrument for Mexican equity exposure. Trading activity on CME is often mirrored -- as we can see every day is often mirrored on MexDer primarily through arbitrage strategies.

We continue advancing on our technological evolution with a strategic agreement recently signed with NASDAQ to also migrate MexDer platforms. With this, we plan to launch a fully integrated derivatives platform in 2026. And then in 2027, we plan to go live with cloud-based platform for CCPs and for the CSD and Valmer. By modernizing its infrastructure and embracing scalable cloud-native solutions, BMV Group is strengthening its capacity to service the local market, attract international participants, boost transaction volumes and unlock new revenues, particularly through data monetization but also global connectivity.

This transformation also reinforces our organization's commitment to innovation, operational resilience and robust security. Earlier this year, we launched our data intelligence unit to lead across functional data strategy all across the organization and headed by top-tier professionals. The initial phase is now underway focusing on mapping the data landscape across all business lines. Next steps include designing central architecture cleaning the data and migrating to a modernized environment. While results may take some time, the strategy will begin to show its potential in the medium term, especially as it aligns with our technology evolution project. As platforms are modernized, they will incorporate data-driven capabilities such as real-time analytics and customizable reporting.

As part of our commercial and marketing efforts and the strategy, our new unified structure enables a more efficient and client-focused approach. This quarter, we tripled our targeted campaigns and client outreach compared to the previous quarter. Our communication strategy now delivers more tailored messaging to specific audiences including financial, but also retail clients. Client meetings are focused on 2 key goals: promoting adoption of the bond CCP and repositioning the S&P IPC Index.

We also successfully executed a media tour in New York in early September to evaluate Mexico's global profile among international investors. Our central message remains clear. Mexico is a highly attractive investment destination, offering stability, proximity to the U.S. in a dynamic emerging market. Additionally, our digital presence has grown significantly helping to promote our products and expand financial education and awareness. Finally, on our ESG agenda, we are proud to have been recognized by HSBC as governance leaders, receiving an award that highlights top ESG strategies in the country. Being named a leading company in sustainable innovation reinforces our belief that sustainability strengthens our business.

Let me now move on to our key financial highlights in the following slides. Please keep in mind that all figures are expressed in Mexican pesos. During Q3 of 2025, total revenues reached MXN 1.1 billion, representing a 4% increase in year-over-year mainly driven by post-trade segment, particularly securities custody along with steady growth in information services and listing activities. EBITDA totaled MXN 623 million, up 2% year-over-year, while EBITDA margin stood at 57% showing a resilient and efficient business with robust cash generation from operations. Net income amounted to MXN 393 million, a 4% decline impacted by recent interest rate cuts by Banxico, which led to lower financial income. On a year-to-date basis, revenues and EBITDA showed double-digit growth, reflecting consistent growth across business lines.

EBITDA margins stood at a solid 57%, net income reached MXN 1.2 billion, up 5%. The increase in expenses reflects our strategy, which we will elaborate on later. Please turn to the next slide. In the third quarter of 2025, more than 75% of total revenues came from post-trade information services, equity and capital formation activities, reaching MXN 826 million, showing a solid performance. For the 9 months ended in September 2025, the reference segments also contributed with most revenues, reaching MXN 2.4 billion, reaffirming the company's stable core business foundation.

Please turn to Slide 7 to go over equity trading and clearing. In Q3 '25, cash equity trading activity remained at similar levels to Q3 '24 despite a 4% decrease in local operations. Global activity continues showing dynamism as evidenced by an increase of 7%. Regarding market share, BMV's level covers between 28% and 80% -- 78% and 80%. On the clearing business, revenue was up by 8%, while total ADTV for the market remained flat quarter-over-quarter.

Revenues from the equity segment increased 6% on a year-to-date basis, but remained unchanged in the third quarter compared to the previous one. Let us go on to the next slide to review derivatives. Revenues from derivatives segment increased in both Q3 and on a year-to-date basis despite a 10% decline in Asigna's revenues, showing more dynamism in futures trading. The average daily notional value of total futures increased by 70%, while open interest doubled in amount compared to 2024 figures. Regarding margin deposits in Asigna, the year-to-date average balance in 2025 decreased by 7%, reaching MXN 42 billion, which continues to represent a relevant figure.

On Slide 9, OTC trading results are shown. SIF ICAP's OTC trading revenues decreased 6% in Q3 '25. Both Mexico and Chile experienced lower market activity, along with an appreciation of their currencies. Mexico revenue grew by 3% and Chile decreased by 10%, which contributes with 80% of the total revenues. In Mexico, M bonds trading fell slightly with lower rates. On Slide 10, we have figures for capital formation. Capital Formation revenue increased by 6%, mainly explained by an 80% contribution of maintenance revenues, Listing revenues grew 38% driven by debt listings. Total outstanding long-term listings increased 5% year-over-year, reaching 531 as of September 2025.

Moving on to the central securities deposit on Slide 11. In demand revenue grew 8%, driven by an increase in assets under custody in both domestic and global markets and more dynamic global market activity. In Q3, total assets under custody reached MXN 44 trillion, a 12% increase reflecting the contribution of the service, which accounts for nearly 50% of total revenue. The exchange rate effect reduced results by MXN 7 million, reflecting peso appreciation.

Finally, on Slide 12, Information Services. Information Services revenue increased by 10%. Market data grew 10% when compared with Q3 '24 and contributed 68% of total revenue. Valmer quarterly revenues increased 11%, explained by new clients and offering new personalized services and APIs. The exchange effects reduced results by MXN 7 million, reflecting peso appreciation. Now let's look at our operating expenses on Slide 13 and 14. Operating expenses for Q3, '25 totaled MXN 543 million, reflecting an 8% increase. This was mainly driven by costs related to marketing and promotion, technology depreciation and personnel which together account for slightly more than 80% of the quarter's expenses, in line with our strategy to continue investing in new business units and technology resilience.

Year-to-date expenses reflect similar growth trends in percentage terms. In Q3, 2025, expenses were impacted by MXN 3 million due to FX appreciation. On a cumulative basis, the effect was more significant with a positive impact of slightly over MXN 27 million. Total CapEx for Q3 reached MXN 89 million while year-to-date CapEx is totaling MXN 189 million, in line with our strategy. Our plan to expand our buyback program earlier this year has not been executed as planned due to market conditions. We became active again in early October, and we are ready to remain active through year-end. Our strategy remains centered on returning capital to shareholders over holding excess cash.

With this, I conclude my presentation. Thank you for connecting today and listening to our remarks. We would like to remind participants that today's call is being recorded, and a replay will be available to more over Bolsa's corporate website, www.bmv.com.mx, and we're now ready to take any questions you may have.

[Operator Instructions] Our first question comes from the line of Ernesto Gabilondo with Bank of America.

I have 3 questions from my side. The first one, we noted this quarter, OpEx growth outpaced revenue growth. We have seen some investors raising some eyebrows on when the timing will be to start seeing new initiatives reflecting in revenues. So when do you expect revenue should be able to outpace OpEx growth?

For my second question, we have seen the weakness of the dollar and the potential strengthening of the peso is reaching a USMCA agreement. On the other hand, there are expectations for the interest rates to continue to go down. Some analysts are expected to be at 6% by the end of next year. So have management evaluated the possibility to implement some hedges to FX or to rate considering the expectations for the dollar and for rates. And for my last question is if you can give us any update on the discussions for the secondary regulation or hedge funds or multi-funds?

Thank you, Ernesto. I guess, for the first question on OpEx growth versus revenue growth, Ramón, I don't know if you want to add some remarks. What I can tell you that this is as planned and presented at the beginning of the year regarding the investments we are making, especially in technology, data security, upgrading our technology. But Ramón, can you elaborate on that?

Yes. Ernesto, our strategy, which was -- which we commented on was to invest in new products and new departments, especially data and technology. When we are expecting the new revenues from additional services will be when we have the new CCP for bonds and as the data products begin to mature. So we had spoken earlier that we could see we -- we were expecting or we're willing to take a drop in EBITDA margins. It hasn't happened because revenues were better than we had expected, especially during the first half of the year. But we would expect to see revenues begin happening in 2027.

For next year, we're still expecting to see more investment than revenue growth. Regarding the second question...

On the weakness of the peso, Ernesto. Yes, we definitely -- I mean, we are aware of the weakness of the U.S. dollar, the strong growth of peso the interest rates coming down. So we would like to analyze some hedging alternatives and how to manage the treasury as well on this environment. I don't know whether Ramón, if you can elaborate on that. But definitely, we should consider something because this is not a temporary thing as it looks.

Well, yes, just to enforce or his comments is something that we've talked about. The audit committee has raised the question is what would be the best -- our best strategy going forward. As you know, we have somewhat of a long position. We also have certain exposure from Chile, which affects us. So it's something that we are considering.

Excellent. And for the last question on the update for the secondary regulation?

Yes, on the hedge funds, let me tell you what I know. José Manuel can also add on it. But as you know, the Chairman of the Executive Commission has recently changed. The new Chairman is quite familiar with these rules. What he asked us for a couple of months to take over all the initiatives that he was pushing from his previous post on the treasury. But I think there are very good news for the industry in general to have the new Chairman of the Securities Commission that was involved not only on the writing and pushing in Congress, et cetera, the initiatives, the 2 main initiatives we have seen in the last 3 or 4 years, which were the simplified listings and also the pension funds. What I know is that these big discussions are moving forward and some important news were recently published regarding securities lending by flexibilizing and making the tax treatment for securities lending clearer in order to facilitate security lending, and that will be a key element for the growth of the local hedge fund industry. That's what I can tell you.

Our next question comes from the line of Brian Flores with Citigroup.

I have 2 questions. The third one is on margins. I wanted to ask you, you obviously are investing, as you just mentioned, and you also mentioned some changes in market share. So I just wanted to get your view on which one is dominating the compression in margins? Just to understand if you think this is a structural trend? Or do you think, as you mentioned, that they should recover in 2027, do you mean recovering vis-a-vis the current levels or more depressed levels? Do they stay stable or they come back to the levels we saw, for example, in 2024?

And then my second question, you mentioned your plans on the buyback program, you said you were going to remain active to year-end. And you call it market conditions. Could you elaborate a bit on that, do you mean the share price to make buybacks is not making a lot of sense right now. Do you mean it's too volatile to do a decision. I just wanted to see if you could elaborate a bit on what are you seeing in these market conditions?

Thank you, Brian. First of all, when we speak about margins, we are talking about EBITDA margins. As I said, they could come down for next year. And for 2027, we would expect them to go back up to these levels to the 57 levels, depending on market conditions, it hopefully is still higher. And market share we expect it to remain around these levels. We don't see -- we don't expect much movement there. Regarding the buyback program, what I said is we are ready to be active. We operate depending on the stock price. The stock price during the first 6 months of the year or 7 months was higher than -- than what we had expected. And so we operated less than we had originally thought -- at current levels, we will be active again. And by that mean -- but it's dependent on the stock price. I don't know if that's clear.

Yes, it's very clear.

And as I said, our strategy is to return capital. We don't need to hold more cash than we actually need.

Our next question comes from the line of Carlos Gomez with HSBC. I'm sorry. Our next question comes from the line of Yuri Fernandes with JPMorgan.

I have one regarding your CapEx. It was higher again. And I know it's part of your post-trade interest formation all your investments it is clear. But I remember in the past call, you mentioned $250 million -- sorry, MXN 250 million kind of guidance for this year. And you are on track for that because you had like a very low first quarter. But if you continue the pace you had this quarter, and we annualize, maybe you're slightly above, right? You could be running at around MXN 300 million, MXN 350 million. So just checking the box, like should we see maybe CapEx above the initial budget? Like are you seeing more investments. And what should we see for 2026? Like should this continue? Because in the end of this impact your margin discussion, right, if you do it takes time for your depreciation to show up your capitalizing expenses.

So just trying to understand where your CapEx guidance contrast versus the third quarter print. And then my second question is regarding your equity price decrease. I remember last year, at the beginning of this year, that we were supposed to reduce the trading -- the price of trading, maybe MXN 100 million impact for the year. How is that? Like were you able to get the approvals? You still don't have the approvals, and you don't have like any price reductions. Does it make sense to cut the prices now? If you can provide an update on this topic, it would be interesting.

Yuri, this is Jorge. Thank you for your question. Let me answer the second one. We haven't matched the trading, our trading fees. We haven't decreased, [Technical Difficulty] last year. We have approval from the regulator to go down if we need it. But at the moment, we are -- because we are [Technical Difficulty] market share, we are not planning to move the prices soon, although we are ready to do that if needed. But the pricing structure remains the same as last year. We were not in the need of lowering because the market share, although was lower a little bit at the beginning of the year, we recovered it. So we are not seeing any [Technical Difficulty] to use the new equity tariffs.

And I don't know, Ramón, if you can go deeper on the CapEx question from Yuri.

Sure. Yuri, our project -- our main project, which is the technology transformation system from Post-Trade has been -- we included the derivatives platforms. And it has also grown in scope a bit into more data capabilities. So that has led to more CapEx investment. And for next year, it should remain -- that -- both of these projects remain -- the most significant one is being this NASDAQ technological transformation. So yes, we're also expecting high CapEx in the MXN 250 million, MXN 300 million for next year.

Super clear. How about after debts, should return it to the MXN 200 million that you used to guide or like it's 2026, and then 2027, it goes down or too early to talk about it?

Well, once we're done with the systems for Post-Trade, we're likely to begin with our trading -- with our cash equity trading technology. So it should be a lower investment than this, but we're also going to have more projects there.

Super clear. And if I may, a third one, and sorry for asking many questions. But we saw many noises on taxation in Mexico with the budget for 2026, right? There was news on insurance to companies, some news on banks. Is there anything in particular for investments exchange? Like is there anything changing for you like on the proposal or nothing major for your sector?

Nothing major. We're not expecting a -- we're not having any impact currently.

Our next question comes from the line of Edson Murguia with SummaCap.

I have one specifically about the technology and my question is, how are you going to make today a operational risk? Because it's my understanding that the plan needs to be in AWS. Even the cloud for 2027 and a couple of days ago, we saw a sort of that, even a brokerage dealer in Mexico, their recovery process was not that quick. So my question is, how are you going to mitigate that specifically? And the second question regarding on technology and this transformation. We have seen an increase in salaries and compensation in a couple of quarters. So -- because you are using AI, if I remember correctly, last quarter, the Chief Information Officer, you mentioned the AI excellence center. And correct me if the name is wrong, are we expecting a headcount reduction?

Can you please repeat the first question?

Yes, my first question is how are you going to mitigate technology risk using AWS in the case if another shutdown that we saw a couple of days ago.

I can jump on [indiscernible]. Well the problem that was kind of presented by -- I understand because it's hard to have good understanding of your question because of the noise in the line. But it has to do, as I understand, regarding the problem that the AWS faced last Monday. And we have been taking a look at this condition and this problem came from the Virginia region that is the oldest regions in AWS. The remaining regions in AWS hasn't had any problem with territory and what we are planning is to allocate our operations in the Mexico region. This also has to do with the regulation in order to have -- to give the data [indiscernible].

So we are working in understanding this problem. First, the good news is that the problem on the current performance that AWS has faced are just related with the Virginia region, as these are the oldest ones. The remaining hasn't had any problem. And second, we are taking a look in order to assure that the customer record recondition, we are planning to install already can manage this problem so far. We are pretty confident that the resiliency design that we are planning to implement will also -- can handle the situation. And second, repeating of the condition of the Virginia region. Our presumption will be allocated in the Mexico region. That is main one, and we expect that we have [indiscernible] that is present in the remaining regions in AWS.

I'm dividing on the headcount reduction or the possibility because the using of AI?

We don't -- let me say, our investments in technology are aimed at making us more productive. There is no headcount reduction plan or target along with them but with greater technology, you should be more efficient in your operation. Now if people can be assigned to different activities or different productive activities, that will be the case. So our aim is to be more efficient and productive and not necessarily looking at a headcount reduction objective per se.

Okay. And last, if I may, regarding on this second phase of the digital transformation, specifically about derivatives. Could you explain a little bit more? It's going to be, I don't know, Asigna first or if this is going to be MexDer because it's my understanding that you're planning a full transformation way clearing central counterparty trading also? And if I may, part of the question is, are you planning to, in this transformation include 0 days to exploration options?

Yes. Yes, José Miguel also maybe help me on the answer, but the answer is -- let me just clarify something. It's not a second stage. Actually, we are planning to deploy all the derivatives technology ready by year-end 2026. So that will include MexDer, and that will include Asigna [indiscernible] to be running into the NASDAQ technology, provided cloud services as well and a lot of flexibility on the design and implementation of new products, including yes, short-dated options, weekly, et cetera, something that currently, we cannot deploy, but next year, we will be able to cope with those needs to -- in terms of time to market and new products implementation with substantial timing reduction in time to market. But that's the new derivatives platforms for both trading and clearly will be ready in 1 year time.

Our next question comes from the line of Pablo Ordóñez with GBM.

Jorge, Ramón, I have a couple of questions. First, can you comment on the rollout of the business -- of the clearing business for debt. You received authorization back in September to start operations. So my question is are banks and clients participating and also what could be the potential revenue growth for the CCB in the coming years from this project?

[Technical Difficulty]. Yes, we received authorization. We are in the process of the onboarding. We -- there was a call a couple of weeks ago, an industry led by the Central Bank Treasury, the Securities Commission [indiscernible] to announce the launching. The first day of trading, I believe, is November 20 or 26 and I don't have it in front of me but it's, let's say, the last week of November to go live. We have 4 inter-delivery brokers already testing and pretty much connected. And the intention is to have 4 to 6 clearing members by that date ready and more people will be incorporating their request to join clearing for the CCP but we have a list of interested parties -- correct me, Ramón, Roberto is in the line that we have around 14 interested broker dealers and banks to join this first stage of clearing, which will be only cash bonds, cash and M bond clearing to be ready for 2026 rollout of the repos which -- where we expect to have much higher participation. But I don't know if you can look at that add something, Ramón on the projected growth.

Yes, as we said in the call, the significant part of revenues from the CCP will come from the repo service. That is where we're expecting to have the revenue generation and that service will go live at the end of 2026. So we should start seeing revenues let's say, for 2027, have the size of the revenues or how much is still unclear. It depends basically on the final fee schedule, but it will -- we're not expecting anything significant for 2026.

With the current numbers -- just to give you an idea of the size of the market, the -- today, the CCP, the cash equity CCP excluding a little bit more than $1 billion a day, let's say, $1.3 billion a day. The expected size of the M bonds market we are targeting on the first stage is $6 billion. Obviously, fees are not the same. These are public now, it is around 1/3 of the equities but the size of the market is much, much bigger. And that's only cash. Repos, we are talking about 5x those numbers eventually to be targeted in the second stage. So that's why we are enthusiastic about the second stage. And even with the first stage, it means that it's a sizable opportunity for us on the clearing side for M bonds, definitely in the repos and eventually to develop the electronic piece of the trading as well.

That's great color, Jorge and Ramón. Second question, if I may. So you mentioned -- so we are now expecting MXN 250 million in CapEx per year for the coming years. So what are you thinking in terms of the payout? Should this year, you decrease the payout to 70%, do you think that with these levels of CapEx, should we continue to expect dividends around 70% work on Ramón?

First of all, let me clarify. CapEx for next year should be higher than the MXN 250 million that we had expected. We had expected MXN 250 million for this year. We're most likely end up higher, and we will most likely be higher for next year due to the expansion of the projects that we're having. Where the dividend will be depends on the balance we have on dividend and buybacks. It's -- I think you have a very valid point. We cannot have high CapEx, high dividend and high buybacks all at the same time because we're going to run out of cash. So that's something that we will -- the dividend will be a balance between the buyback and the dividend. Our strategy will be to give back as much cash as we can and not keep cash that we do not need and keep that number as high as possible, whether it be through a dividend or through buybacks.

Okay. And when you say higher than MXN 250 million, the CapEx for next year, are you thinking MXN 300 million or even higher than that amount?

We're working on the numbers, but it could be higher than MXN 300 million. Thank you for the question. And I think we have Carlos Gomez now.

Our next question comes from the line of Carlos Gomez with HSBC.

Again, my apologies for my technical problem before. So 2 questions. One is going back to the investment plans. Again, to recall, we have more than MXN 300 million next year. Probably, again, from what we understand, a similar amount the following year, I guess, that is fair to say. This is on CapEx, so it is capitalized. Can you remind us what amortization period you are using and when we will start to see amortization charges hit the income statement more heavily? Is it going to be in 2026 or '27 and beyond?

Second, I wanted to ask about the impact of the foreign exchange. You have this very useful table. Thank you for that on Page 8, would you show how on equation on ForEx adjusted terms EBITDA revenues and expenses all grew by 7%. That's actually an acceleration from the 5% that you have from the fourth quarter of last year. Would you say that your business is actually picking up and will be a realistic ForEx adjusted expectation for 2026?

Carlos, regarding the first question, amortization period is somewhere between 7 and 10 years. It depends on the specific project. For the NASDAQ technology, we'll be using 10 years.

Is this linear, by the way?

Yes. it's linear. CapEx should be shier in 2026, it should decrease a bit by 2027, but also we could have new projects there, but nothing as large as what we're having right now. And could you repeat the -- your second question, please?

So again, when we look at your business on a ForEx-adjusted basis, and you show us those numbers on Page 8 of your press release, you were growing at 5% last year? For the full year, you have been growing 7% in the first 9 months of the year. So should we understand that your business is accelerating? And should we expect a higher rate of growth into next year or this 7% is a realistic one for 2026?

That really depends on what happens to the FX. We have let's say, a rule of thumb, you could say that MXN 1 movement in the exchange rate equals MXN 50 million to MXN 60 million in EBITDA. So if the peso depreciates by MXN 1, we're going to have around MXN 50 million or MXN 60 million more EBITDA. If the peso appreciates by MXN 1, we're going to have MXN 50 million to MXN 60 million less.

Okay. So that is the sensitivity to ForEx. And I guess my question is the underlying growth of the business. If the 7% that we see adjusted for ForEx, is a realistic expectation for 2026 or you aim higher or lower than that?

It should be around there.

There are no questions at this time. I'll turn the floor back to management for any final comments.

Well, thank you very much again. We are very grateful for your time and excited to share our numbers and our plans that are developing as planned and looking for an active and exciting fourth quarter as well as a very productive 2026. So thank you very much to all. And if anything you can check on our website for a replay of the call or reach out to Ramón or Hanna for any questions. Thank you very much for your time.

Thank you. This concludes today's conference call. You may disconnect your lines at this time. Thank you for your participation.