north to south market maker programmarket maker program · benefits with the cme group – mexder...

North to South Market Maker ProgramMarket Maker Program

Agendag

I t d tiIntroduction

Benefits

How to participate?

Products overview

Agendag

IntroductionBenefits

How to participate?

Products overviewProducts overview

Introduction• MexDer is the derivatives subsidiary of BMVyGroup the financial exchange operator in Mexico.

• Fully electronic market place, as a self-regulated

exchange it has a flexible legal framework.g g

• CME Group and MexDer joined forces to link thetrading platforms, a world of opportunities is broughtcloser to you.

• MexDer is the leading market place for tradingderivatives on Mexican benchmarks.

Agendag

IntroductionIntroduction

B fitBenefitsHow to participate?

Products overviewProducts overview

Benefits

With the CME Group – MexDer order routing agreement MexDer products will beil bl i th 100 000 CME Gl b ®available in more than 100,000 CME Globex® screens.

No Withholding Taxes when trading in MexDer.

No local presence required in Mexico.

Omnibus Accounts: Rule 30.7 (CFTC) segregationO f P i diOne for Proprietary trading.One for Customer trading.

Remote Membership.CFTC approved productsCo-locationDMACollaterals accepted in the US.

Give Ups.FIA d dFIA standard agreement.

Agendag


Benefits

How to participate?How to participate?Products overviewProducts overview

How to participate?p p1. As a Client of an MCM

A O ib A t i M D2. As an Omnibus Account in MexDer

3. As a Client of a MexDer Omnibus Account

4. As a Remote Member

http://www.mexder.com/MEX/Open_an_Account_-_Trading_and_Clearing_Members.html

How to participate?p p1. As a Client of an MCM.

Fastest and easiest way to take advantage of the CMEGroup – MexDer order routing agreement (ORA) .

Have access to CME GlobexDirect execution in MexDer, Co-locationavailable.Clears through a MexDer Clearing Memberg g(MCM), the only paperwork required.

2. As a MexDer Omnibus Account.A li t f M D O ib t3. As a client of a MexDer Omnibus account.

4. As a Remote Member.Non-Clearing Remote Membership with direct access to the trading system clearingthrough a local Clearing Memberthrough a local Clearing Member


(1) As a Client of an MCM

Prop Trader :As a Client of

Lines to GLOBEX

GLOBEX Infrastructure USUS

40 Mbps line

s a C e t oan MCM

USUS

MEXICOMEXICOMEXICOMEXICO

Account withMCM required

Mexico GLOBEX Hub

40 Mbps line40 Mbps line

MCM

Match Engine

(Asigna Clearing Member)

(Paperwork required) Co-locationavailable

How to participate?p p1. As a Client of an MCM

Executing as a customer of a Trading Member or even through an Omnibusg g gAccount.

2. As a MexDer Omnibus Account.The CME member that qualifies as an omnibusaccount executes directly in MexDer andyclears through a MexDer Clearing Member.Minimum legal paperwork required withMinimum legal paperwork required withMexDer.The omnibus clients identity is not disclosed.The omnibus clients identity is not disclosed.

3. As a client of a MexDer Omnibus account4. As a Remote Member.

Non-Clearing Remote Membership with direct access to the trading system clearingNon-Clearing Remote Membership with direct access to the trading system clearingthrough a local Clearing Member


(2) As a MexDer Omnibus Account

CMEG Member :As a MexDer Omnibus

Lines to GLOBEX


40 Mbps lineAs a MexDer Omnibus

AccountUSUS

MEXICOMEXICOMEXICOMEXICO

Account withMCM required

Mexico GLOBEX Hub


MCM

Match Engine


(Paperwork required)


Executing as a customer of a Trading Member or even through an Omnibusg g gAccount.

2. As a MexDer Omnibus Account .The CME member that qualifies as an omnibus account executes directly inMexDer and clears through a MexDer Clearing Member.The omnibus clients identity is not disclosed.

3 As a client of a MexDer Omnibus account3. As a client of a MexDer Omnibus accountWhen executing through an Omnibus Account, youdon’t need legal paperwork with MexDerdon t need legal paperwork with MexDer.Trade through your existing agreement with the CMEMember (registered omnibus in MexDer)Member (registered omnibus in MexDer)

4. As a Remote Member.Non-Clearing Remote Membership with direct access to the trading system andclearing through a local Clearing Memberg g g


(3) As a Client of a MexDer Omnibus account

Customer:As a Client of a MexDer

Lines to GLOBEX


CMEG Member:Omnibus Account

40 Mbps lineAs a Client of a MexDer

Omnibus AccountUSUS

MEXICOMEXICO

Omnibus Account

(NO additional paperwork required) MEXICOMEXICOrequired)

Mexico GLOBEX Hub


MCM

Match Engine



Executing as a customer of a Trading Member or even through an OmnibusExecuting as a customer of a Trading Member or even through an OmnibusAccount.

2. As a MexDer Omnibus Account .The CME member that qualifies as an omnibus account executes directly in MexDerand clears through a MexDer Clearing Member.

The omnibus clients identity is not disclosed.3. As a client of a MexDer Omnibus account

4. As a Remote Member.Non-Clearing Remote Membership with direct access toNon Clearing Remote Membership with direct access tothe trading system.

Legal paperwork required with the Exchange.

Clear through a MexDer Clearing Member.


(4) As a Remote Member

Lines to GLOBEX


CMEG Member:MexDer member & Omnibus Account

40 Mbps lineUSUS

MEXICOMEXICO

MexDer member & Omnibus Account

MEXICOMEXICO

(Paperwork

Account withMexDer ClearingMember required

Mexico GLOBEX Hub

40 Mbps line

( prequired)

40 Mbps line

MCM

Match Engine


(Paperwork required) Co-locationavailable

Agendag


Benefits

How to participate?

Products overview

Products overview

Let’s take a closer look:

IPC Futures

MXN/USD Futures

Bond FuturesBond Futures


IPC Futures

MXN/USD Futures

Bond Futures

IPC Futures

Underlying, IPC - Mexican Exchange Index.Capitalization Index

Ticker Symbol: IPC Q t ti I d P i t

Capitalization Index

Quotation: Index PointsSize: IPC x $ 10 MXNTick: 5 pointspTick Size: $ 50 MXN // $ 4.16 USD *Notional Size: $370, 000 MXN ***// $30, 833 USD***Maturity Months: Quarterly, up to one yearSettlement: CashTrading Hours: 07:30 - 15:00 hrs. (GMT -06:00)Trading Hours: 07:30 15:00 hrs. (GMT 06:00)

Bloomberg < MMDD > ISA <INDEX> CT

Reuters MXN/FUTEX1 0#IPC:

*Exchange Rate : $ 12 MXN*** IPC@ 37000 points

IPC Futures

Leading indicator of the Mexican Stock market.Hi hl l t d S&PHighly correlated with the S&P.

2010 return USD 26.83%

IPC Future (ADV)

80,000

90,000

100,000

5,000

6,000

EST

VOLUME OPEN INTEREST

40 000

50,000

60,000

70,000

3,000

4,000

OPE

N IN

TER

E

VOLU

ME

10,000

20,000

30,000

40,000

1,000

2,000

O

0-2005 2006 2007 2008 2009 2010

Options on the IPC Future

Underlying, IPC Future

2010 I li d V l tilit 20 8%

Ticker Symbol: IP

2010 Implied Volatility: 20.8%

Ticker Symbol: IP Quotation: Index PointsStyle: EuropeanTick: 1 point

Size: IPC x $10 MXN

M t it M th Q t l tMaturity Months: Quarterly, up to one year

Settlement: Cash

Trading Hours: 07:30 15:00 hrs (GMT 06:00)Trading Hours: 07:30 - 15:00 hrs. (GMT -06:00)

Bloomberg < MMDD > ISA <INDEX> OMONReuters MXN/FUTEX1 0#IPC* XD:Reuters MXN/FUTEX1 0#IPC .XD:


16,000700


VOLUMEN INTERÉS ABIERTO

Volume Open Interest

10,000

12,000

14,000

400

500

600

n In

tere

st

UM

E

4,000

6,000

8,000

200

300

400

Ope

n

VOLU

0

2,000

0

100

2004 2005 2006 2007 2008 2009 2010

Volatility Index Mexico (VIMEX) vs VIX®

85 VIMEX® VIX®

65

70

75

80

Arbitrage Opportunities

50

55

60

65 Arbitrage Opportunities

30

35

40

45

15

20

25

30

5

10

2‐Jan

11‐Feb

22‐M

ar

1‐May

10‐Jun

20‐Jul

29‐Aug

8‐Oct

17‐Nov

27‐Dec

5‐Feb

17‐M

ar

26‐Apr

5‐Jun

15‐Jul

24‐Aug

3‐Oct

12‐Nov

22‐Dec

31‐Jan

12‐M

ar

21‐Apr

31‐M

ay

10‐Jul

19‐Aug

28‐Sep

7‐Nov

17‐Dec

VIX ® is a registered trademark of Chicago Board of Options Exchange, Incorporated.

1 2 2 1 2 1 2 2 1 2 1 2 3 1 2 1


IPC Futures

MXN/USD Futures

Bond FuturesBond Futures

MXN/USD FuturesUnderlying, United States of America - Dollar.Arbitrage t it ith th MXN/USD Futures of the CME Group

Ticker Symbol: DA MR11 **

Arbitrage opportunity with the MXN/USD Futures of the CME Group.

yQuotation: PriceSize: $ 10,000 USDTi k $ 0 0001 MXNTick: $ 0.0001 MXNTick Size: $ 1 MXN // $ 0.0833 USD *Notional Value: $10,000 USD$ ,Maturity Months: Quarterly, up to 3 yearsSettlement: Physical deliveryTrading Hours: 07:30 - 14:00 hrs. (GMT -06:00)

Bloomberg < MMDD > DWA <CMDTY> CTReuters MXN/FUTEX1 0#B10:Reuters MXN/FUTEX1 0#B10:

** DA + the month of the year of maturity*Exchange Rate : $ 12 MXN

MXN/USD FuturesVolume increased 255% in 2010 vs 2009.O t iti f HFT tiOpportunities for HFT quoting on a screen

300,00030,000

USD Dollar Futures (ADV)


200,000

250,000

20,000

25,000

ERES

T

ME


50 000

100,000

150,000

5 000

10,000

15,000

OPE

N IN

TE

VOLU

M

0

50,000

-

5,000

2005 2006 2007 2008 2009 2010

** DA + the month of the year of maturity

*Exchange Rate : $ 12 MXN


IPC Futures

MXN/USD Futures

B d FBond Futures

Bond FuturesUnderlying, Bonds issued by the Mexican government (BBB+).The most actively traded securities in MexicoThe most actively traded securities in MexicoA benchmark for Mexican domestic interest rates.

Ticker Symbol: M3/ M10/ M20Quotation: PriceSi $100 000 MXNSize: $100,000 MXNTick: $ 0.025 MXN // $ 0.00208 USD *Tick Size: $ 25 MXN // 2.08 USD *$

Notional Value: $100,000 MXN//$8,333 USD *

Maturity Months: Quarterly, up to 3 yearsSettlement: Physical delivery

Trading Hours: 07:30 - 14:00 hrs. (GMT -06:00)

Bloomberg < MMDD > DWA <CMDTY> CTReuters MXN/FUTEX1 0#B10:

*Exchange Rate : $ 12 MXN

Bonds Futures

$35,000

$40,000Foreign Investment in MXN Debt

Government SecuritiesM Bonds included in the WGBI Index

$20,000

$25,000

$30,000

MIL

LIO

NS)

Index.Very important foreign participation

$5,000

$10,000

$15,000

USD

(MparticipationMost efficient way to hedge or short the Mexican yield

$0

Dec

-00

Dec

-01

Dec

-02

Dec

-03

Dec

-04

Dec

-05

Dec

-06

Dec

-07

Dec

-08

Dec

-09

Dec

-10

Source: Banxico

ycurve.

250,000

300,000

16,000

18,000

20,000

Bonds Futures (M3/M10/M20) ADV


The whole yield curve of the

Mexican Sovereign is available:

100,000

150,000

200,000

6 000

8,000

10,000

12,000

14,000

EN IN

TER

EST

VOLU

ME

3 Year Bond (M3)

10 Year Bond (M10)

20 Year Bond (M20)

+ 91 Day Treasury CETE.

0

50,000

0

2,000

4,000

6,000

2005 2006 2007 2008 2009 2010

OPE

V

Bonds Futures Contracts

M10 Future (ADV)M3 Future (ADV)

VOLUMEN

80 000

100,000

120,000

140,000

8 000

10,000

12,000

14,000

( )VOLUMEN INTERÉS ABIERTO

LUM

E

OPEN

INT

20 000

25,000

30,000

35,000

40,000

2,500 3,000 3,500 4,000 4,500 VOLUMEN

INTERÉS ABIERTO

LUM

E

OPEN

INTE

0

20,000

40,000

60,000

80,000

-

2,000

4,000

6,000

8,000

VOL

TEREST

0

5,000

10,000

15,000

20,000

0500

1,000 1,500 2,000

VOL ER

EST

0

Sep

-Dic

03

2004

2005

2006

2007

2008

2009

2010

00

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

120,000

140,000

160,000

4 000

5,000

6,000 M20 Future (ADV)VOLUMEN INTERÉS ABIERTO

VOLU

ME

20 000

40,000

60,000

80,000

100,000

1,000

2,000

3,000

4,000 OPEN

INTER

0

20,000

-Jun-Dic 09 2010

REST

Bond Futures: Arbitrage Opportunities

10 Year Bond Future (MXN) vs. 10 Year T-Note Future (USD)

$121

$124

$126

$128

$115

$118

$122

$124

USD

MXN

$109

$112$118

$120

U M

$103

$106

$109

$112

$114

$116

10 Year T-Note Futures JN 11 M10 Futures JN 11

$100

$103

$110

$112

Jun

10Ju

n 10

Jun

10Ju

n 10

Jun

10Ju

l 10

Jul 1

0Ju

l 10

Jul 1

0Au

g 10

Aug

10Au

g 10

Aug

10Au

g 10

Sep

10Se

p 10

Sep

10Se

p 10

Oct

10

Oct

10

Oct

10

Oct

10

Nov

10

Nov

10

Nov

10

Nov

10

Nov

10

Dec

10

Dec

10

Dec

10

Dec

10

Jan

11Ja

n 11

Jan

11Ja

n 11

Feb

11Fe

b 11

Feb

11

A A A A A S S S S N N N N N D D D D F F F

Final remarks• Opportunity to participate in a developingmarket .• End customers, FCMs, prop traders, highfrequency traders.

• Easy access• Easy access

• Market Making incentive program.a et a g ce t e p og a

• Liquidity and depth in the underlying securities;d l t i th i d i ti t t t f lldevelopment in their derivatives contracts to follow.

• Be part of the development of this new andBe part of the development of this new andexciting market!

Key Contacts

BMV MexDer

P&SP&SBerenice CorralVP Business Development [email protected]+52 555342 9930

OperationsLuis Acevedo Chief Operation Officer [email protected] +52 55 5342 9910

Clearing Member Firms:


CME International P&SCharles FarraDirector, Products and International [email protected]+1 312 930 2319

CME GAMsJodi Abudarham Director, PE & Client Technology [email protected]+1 312 930 1302

north to south market maker programmarket maker program · benefits with the cme group – mexder...

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