CME Group Recognized as Central Counterparty in Mexico

North American diversified electronic marketplace and network of exchanges CME Group has today announced that Chicago Mercantile Exchange Inc. obtained full recognition as a foreign central counterparty (CCP) in Mexico from the Banco de México, effective September 2, 2016. Since April 2016, the clearing house division of CME Group, CME Clearing, had operated under temporary […]

North American diversified electronic marketplace and network of exchanges CME Group has today announced that Chicago Mercantile Exchange Inc. obtained full recognition as a foreign central counterparty (CCP) in Mexico from the Banco de México, effective September 2, 2016. Since April 2016, the clearing house division of CME Group, CME Clearing, had operated under temporary recognition pending finalization of a memorandum of understanding (MOU) between the Commodity Futures Trading Commission, Banco de México and the Comisión Nacional Bancaria y de Valores (CNBV).

Execution of the MOU and extension of CME Group’s recognition provide uninterrupted access and additional certainty for Mexican market participants subject to the local Mexican Peso (MXN) Interbank Equilibrium Interest Rate (TIIE) swap clearing mandate to fulfill their obligations at CME Clearing.

“This recognition as a CCP will strengthen CME Group’s ability to help our clients in the region effectively manage their risk,” said Sunil Cutinho, Senior Managing Director, and President of CME Clearing. “As our clients continue to increase their voluntary clearing of MXN interest rate swaps, we look forward to bringing greater liquidity and transparency to this significant and rapidly-growing market.”

With this recognition, CME Clearing can continue providing Mexican participants clearing and settlement services in its OTC interest rate swaps (IRS), including CME Group’s MXN IRS. Since launching the product, CME Group has cleared over $1.85 trillion in MXN IRS and open interest has grown to more than $895 billion. More than 85 market participants have cleared MXN IRS through CME Clearing, with 20 dealers providing liquidity.

CME Group offers clearing in 19 IRS currencies and is the only global clearing house to offer central clearing for MXN IRS, Brazilian Real (BRL) IRS and U.S. Dollar Swaptions (USD).

As the world’s leading and most diverse derivatives marketplace, CME Group (www.cmegroup.com) is where the world comes to manage risk. CME Group exchanges offer the widest range of global benchmark products across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural products and metals. Around the world, CME Group brings buyers and sellers together through its CME Globex® electronic trading platform and its exchanges based in Chicago, New York and London.

CME Group also operates one of the world’s leading central counterparty clearing providers through CME Clearing and CME Clearing Europe, which offer clearing and settlement services across asset classes for exchange-traded and over-the-counter derivatives. CME Group’s products and services ensure that businesses around the world can effectively manage risk and achieve growth.

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