MexDer Mexican Derivatives Exchange

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MexDerMexican Derivatives Exchange

• September, 2009

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MexDer

• MexDer is the Mexican Derivatives Exchange.
• Founded in 1998.
• Regulated by the Ministry of Finance and
  supervised by the Mexican Securities Commission
  (CNBV)
• Part of the Mexican Stock Exchange Group.

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IPC Index Futures Contracts

• The leading indicator for the Mexican equity
  markets.
• The IPC indicates the market return based on
  price variations in a balanced, weighted and
  representative sample of the stocks listed on the
  Mexican Stock Exchange.
• The easiest and cheapest way to hedge and short
  the Mexican equity market.
• From 2006 to 2008 the Open Interest has increased
  in more than 184.

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Arbitrage Opportunities VIMEX vs VIX

VIX is a registered trademark of Chicago Board
of Options Exchange, Incorporated.
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10-Year Bond Futures Contracts

• Underlying 10 year bond issued by the Mexican
  federal government.
• One of the most actively traded fixed income
  securities in Mexico.
• Local Pension Funds and foreigners actively
  trade this product.
• Arbitrage opportunities.
• Most efficient way to hedge and short positions.

Source Banxico
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Fixed Income Futures

• Trade the whole yield curve of the Mexican
  Sovereign that is available.
• 91 Day Treasury CETE
• 3 Year Bond (M 3)
• 10 Year Bond (M10)
• 20 Year Bond (M20)

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Foreign Investment in Mexican Bonds(Balance at
the end of each period)
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Arbitrage Opportunities 10-Year
Bond Futures (MX) vs. T Notes Futures (US)
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What makes MexDer so attractive?

• No Withholding Taxes for
• Capital gains in fixed income derivatives traded
  in MexDer (Since 2006).
• Options on Single Stocks (Since 2008).
• Omnibus Accounts.
• In accordance to the CFTCs rule 30.7, two
  accounts are allowed
• One for Proprietary trading.
• One for Customer trading.
• Remote Membership.
• IOSCO technical committee members.
• No local presence required.
• CFTC No-Action Letters (IPC futures screens).
• FIX Access.
• Proximity
• Collaterals accepted in the US.
• Give Ups.
• FIA standard agreement.

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