CHICAGO, May 25, 2021 /PRNewswire/ -- CME Group, the
world's leading and most diverse derivatives marketplace, today
announced the first trades of the new interest rate futures based
on the Central Bank of Mexico's Overnight TIIE funding
rate (F-TIIE). Launched on May 24,
2021, the trades were transacted by BBVA México, Monex Casa
de Bolsa and Banorte, and were executed via Altura Markets and CME
"We are pleased to have received industry support for our first
Mexican F-TIIE interest rate futures contract," said Agha
Mirza, Global Head of Rates and OTC Products at CME
Group. "Our futures contract aligns with the Central Bank
of Mexico's objectives to develop robust risk-free rates
(RFR) and establish a domestic funding curve, while complementing
our OTC Mexican interest rate swaps clearing business, dollar-peso
FX futures contracts and SOFR futures."
"Mexico fully embraces the
global trend for new market-based reference rates, and today an
optimal instrument for trading and hedging the overnight reference
rate of the Central Bank of Mexico
has arrived," said Alejandro Faesi,
Head of Global Markets and Institutional Sales for Banorte.
"Banorte is proud to join CME Group in this effort."
"The development of an active and liquid derivatives market for
Funding TIIE is one of the key elements to allow this rate to
become the benchmark for the Mexican market," said Manuel Meza, Head of Global Markets, BBVA
Mexico. "Corporate issuers and bank loans in MXN will soon follow
in having F-TIIE as the reference rate."
"Funding TIIE futures at CME Group, along with other contracts
like SOFR and USD/MXN currency futures, are instrumental for
transitioning to the new and modern market structure for
Mexico and its financial markets
participants. This is a game changer," said Javier Alvarado, CEO, Monex Casa de Bolsa.
The Mexican peso-denominated contract will be cash-settled
against the compounded F-TIIE rate over monthly contract periods.
F-TIIE is published daily by the Central Bank
of Mexico and is based on the highly developed and liquid
Mexican repo market. Mexican F-TIIE Rate futures are listed with
and subject to the rules of CME. For contract specifications and
more information, please visit: www.cmegroup.com/ftiie.
As the world's leading and most diverse derivatives marketplace,
CME Group (www.cmegroup.com) enables clients to trade futures,
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indexes, foreign exchange, energy, agricultural
products and metals. The company offers futures and
options on futures trading through the CME Globex® platform, fixed
income trading via BrokerTec and foreign exchange trading on the
EBS platform. In addition, it operates one of the world's leading
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of pre- and post-trade products and services underpinning the
entire lifecycle of a trade, CME Group also offers optimization and
reconciliation services through TriOptima, and trade processing
services through Traiana.
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SOURCE CME Group