New Mexican options exchange to spring out of Spanish alliance

MexDer, the Mexican derivatives exchange, has struck a deal with the Spanish futures and options exchange, Meff, to develop an options exchange in Mexico.

MexDer will use Meff's trading system, S/MART, as its options trading platform in Mexico, and the Spanish exchange will also provide training for MexDer personnel, as well as traders, market makers, brokers and investors.

MexDer, launched in December 1998, trades products including US dollar futures contracts, Mexican interest rate futures and options at 28 days, 91-day Certificados de la Tesoría de la República (cetes) government bond futures, and futures on the Mexican Stock Market Index. MexDer also trades futures on individual stocks, including cement company Cemex, telecommunications firm Telefonos Mexicanos, holding company Grupo Carso, and drinks company Femsa.

The contracts initially planned for listing on the Mexican options exchange will be the benchmark index of the Mexican stock market and options on some of the most liquid shares traded.

As part of the deal, the 14-year old Spanish institution will become a shareholder of MexDer, with a 7.5% holding. "By becoming shareholders of MexDer, we take on the challenge of collaborating closely in the development of new products that MexDer will launch for trading,” said Josep Manuel Basañez i Villaluenga, chairman of Meff. “Secondly, a large number of opportunities have emerged for launching products together and in possible tie-ups between the two markets,” he added.