Mexican Derivatives Exchange
From MarketsWiki
| Mexican Derivatives Exchange | |
| |
| Founded | December 15, 1998 |
|---|---|
| Headquarters | Mexico City, Mexico |
| Key People | Jorge Alegria, CEO
Guillermo Prieto, chairman |
| Products | Futures and options on short-term interest rates, currencies, equity indexes and single stocks. |
| Web site | http://www.mexder.com.mx |
The rapid growth of its TIIE benchmark interest-rate contract and domestic financial reforms have propelled the all-electronic Mexican Derivatives Exchange (MexDer) into the world’s fifth-largest by volume less than a decade after its creation in 1998[1]. Trading volume rose 154 per cent in 2006 to 274.7m futures and options contracts, with open interest closing the year at 45m.
History
Mexico’s 2006 Securities Markets Act paved the way for potential demutualization, and Grupo BMV has hired BBVA Bancomer and UBS to explore an initial public offering of the entities[2]. MEFF, the Spanish derivatives operator, holds a 7.5 per cent stake in the business.
MexDer and Asigna are self-regulatory entities under the supervision of the Ministry of Finance and Public Credit, Banco de México, the country’s central bank, and the National Banking and Securities Commission (CNBV). International volumes have been boosted by revamped withholding tax rules and the authorization of remote trading in October 2006, while overall business has been boosted by the clearance for Mexico’s large mutual fund industry to participate in derivatives[3]
Products
MexDer lists futures on currencies, interest rates, equity indexes and single stocks, as well as options on currencies, equity indexes, single stocks and exchange-traded funds.
The TIIE 28-day interbank interest rate contract dominates trading on the exchange, accounting for 96 per cent of volume in 2006. A 164 per cent rise in trading lifting volume to 264m contracts, ranking it fifth globally, and open interest doubled in 2006 to 45,000 contracts. MexDer lists four other interest-rate products.
Open interest in futures on the benchmark IPC Index rose 10-fold over the past two years. Options on the IPC index were launched in March 2004, with the underlying contract changed in December 2006 from the spot index to the IPC future
Single-stock futures are offered in five companies, including Centex and Femsa, with options on two of the stocks.
A peso/US dollar option was launched in 2006, expanding a currencies complex which includes futures on the peso against the dollar and the euro.
- MexDer USA Dollar Currency Futures
- MexDer European Monetary Union Euro Currency Futures
- MexDer IPC Index of the BMV (Mexican Stock Exchange) Futures
- MexDer 28 Day Interbank Interest Rate Futures
- MexDer 91 Day Treasury Bill Certificate Futures
- MexDer 3 Year Bond Futures
- MexDer 10 Year Bond Futures
- MexDer Inflation Index Futures
- MexDer 10 Year Interest Rate Swap Futures
- MexDer América Móvil L
- MexDer Cemex CPO
- MexDer Femusa UBD
- MexDer Gcarso A1
- MexDer Telmex L
- MexDer Walmex V
References
- ↑ "FIA rankings 2006". Futures Industry Association. Retrieved on November 13, 2007.
- ↑ "Mexican Derivatives See Boost". Latin Finance. Retrieved on November 13, 2007.
- ↑ "MexDer: A Futures Market With Global Appeal ". FIA Magazine. Retrieved on November 13, 2007.
