1 / 46

MexDer, Mexican Derivatives Exchange

MexDer, Mexican Derivatives Exchange . Products

hayward
Download Presentation

MexDer, Mexican Derivatives Exchange

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

    1. MexDer, Mexican Derivatives Exchange

    2. MexDer, Mexican Derivatives Exchange Products & Statistics Development of a Successful Market A new investment framework for Pension Funds New Products Why Mexico? Access for international players Global Accounts Mechanisms to Provide Real Time Data Final Remarks

    3. Listed Instruments Futures Contracts Currencies Mexican Peso / U.S. Dollar Indices IPC (Mexican Stock Exchange Index) Fixed Income 91 days Cetes (MXP Treasury Bill) 28 days TIIE (Interbank Interest Rate) 3 year Fixed Rate Bond in MXP (M3) 10 year Fixed Rate Bond in MXP (M10) Inflation Index (UDI) Individual Stocks Cemex CPO, Femsa UBD, Gcarso, Telmex L, Amx L.

    4. Listed Instruments Options Contracts

    5. MexDer Evolution

    6. Data Highlights

    7. Monthly Average Traded Volume (Thousands of contracts)

    9. US Dollar (MXP/USD) Futures Contract Evolution

    10. 10 Year Fixed Rate Bond Futures Evolution

    12. Development of a Successful Market

    13. Liquidity in the cash Markets and a new large Institutional Investors base (Demand). A solid Clearing House (AAA) and well designed contracts. (Products, supply). Complete support from the Authorities to the proposals submitted. Commitment from the local Intermediaries for Promotion, Growth and Trading Activity.

    14. Growth Factors (Favorable International Outlook) Moody´s assigned the investment grade to Mexico in 2000. Standard & Poor’s assigned the investment grade in february, 2002. Throughout 2001, the Federal Government carried out several operations involving Brady Bonds, issuing debt in the international Markets.

    15. Growth Factors (Internal Savings Orientation) Pension Funds-SIEFORES (Mandatory Specialized Retirement Funds) Initiated operations in 1998, and have since represented an important source of financing for both the public and private sectors. By 2001, SIEFORES holdings already accounted for: 30% of all public sector securities 20% of all private sector securities Long Term Investment Needs Resulting from the long term liabilities in the Pension System. Longer Maturity debt placed by the public sector.

    16. Growth Factors Long Term Investment: 2000, Central Bank Issues 3 and 5 yrs Fixed Rate Bonds in MXP placed locally 2001, Central Bank Issues 10 yrs debt 2003, Central Bank Issues 20 yrs debt

    17. Growth Factors (Mexican Market Trend) Higher participation from Institutional Investors: AFORES (Retirement Funds Administrators) Mutual Funds Insurance Companies All of these have been fundamental to maintain the growth of the Debt Market in Mexico. Active participation from Foreign institutions is expected, due to recent changes in the AFORES Investment Rules.

    18. Growth Factors (Mexican Market Development)

    19. The institutional investors contributed to the growth of savings through Exchange Listed Instruments.

    20. A new Investment Framework for Pension Funds

    21. New Participants …“Big Players” (Pension Funds) In January 2004 Pension Funds started using Fixed Income Derivatives. Last January 18th, 2005 Pension Funds began trading in Equities & Equity Derivatives. The entrance of these new participants will bring as a consequence greater depth and liquidity to the Mexican Derivatives Market. The Pension Funds AUM are 44 Billion USD. They are allowed to invest up to 15 % (net exposure) of their assets in Equity Indices. (Capital Protected Notes).

    22. Investment Rules for Pension Funds May 3, 04 -New Investment Rules. Investments to be allowed in additional Securities (15% Net exposure).

    23. Investment Rules…Impact.

    24. The other “Big Players”… (Mutual Funds and Insurance Companies) MexDer has been negotiating with the Mexican Financial Authorities on behalf of Insurance Companies and Mutual Funds, to develop their derivatives legal framework. We are expecting the arrival from the insurance sector in the Derivatives scene in the second half of 2005. The Investment regime to regulate the use of Derivatives in the mutual funds should be ready by year end.

    26. Current Plans and developments

    27. Why Mexico?

    28. Macroeconomic and financial conditions are helping the development of the Mexican Market

    29. Peso Debt Market (medium and long term)

    30. Peso Debt Market (medium and long term)

    31. Mexico’s Equity Market

    32. Foreign Investment MXN Government Securities & MXN Equity Market

    33. Access for International players

    34. Access for investors and foreign Intermediaries We have the participation of almost all local intermediaries. It is necessary to have more final users (clients of our clients). Important participation in trading of foreign Broker dealers on OTC trades / Mexican interest rates. Counterparty limits increasing.

    35. Strategy Attract international Players

    38. Mechanisms to Provide Real Time Data

    39. Real Time Data SIVA TCP/IP The Automated Securities Consulting System (SIVA) -TCP/IP Protocol- Provides on-line information through terminals connected to our mainframe (Tandem) to connect all MexDer’s participants (Customers, Vendors, Clearing Members, etc.)

    41. Final Remarks…

    42. A great opportunity!

    43. A great opportunity!

    44. It’s the right time…

    45. It’s the right time…

    46. It’s the right time…

    47. MexDer, Mexican Derivatives Exchange

More Related