A screen displaying exchange rates are seen at the Mexican stock market building in Mexico City, Mexico November 11, 2016. REUTERS/Carlos Jasso

MEXICO CITY (Reuters) - Mexico’s government on Tuesday approved a new, second bourse, the Institutional Stock Exchange, which hopes to capture part of the equities market in Latin America’s No. 2 economy and entice more companies to issue stock.

Known by its Spanish acronym BIVA, the new stock exchange

aims to be operating by the start of next year, its president Santiago Urquiza said on Monday. It will compete with the Mexican Stock Exchange, or BMV BOLSAA.MX.

The finance ministry announced the approval of the exchange in the government’s official gazette.

Urquiza said he sees considerable potential for new public offerings from companies with annual sales of between 500 million pesos and 1 billion pesos ($28 million to $56 million).

BIVA will be backed by technology from Nasdaq, the second biggest U.S. exchange, which is used by more than 70 markets around the world, according to Urquiza.

He expected the number of publicly traded companies in Mexico could increase over the next three years by about 30 percent to around 200 listings while daily volume in Mexican stocks could grow 50 percent to around 20 billion pesos.