The Mexican Derivatives Exchange, MexDer, and the CME Group have launched a south-to-north connection, providing Mexican investors access to CME Group's derivatives contracts, including interest rates, foreign currencies, equity indexes, energy, metals and agricultural commodities.
Luis Téllez, chairman and CEO of BMV Group, says the direct order routing connection will make it possible to trade and route electronic orders on MexDer and CME Group, opening both firms' contracts to a broader range of traders.
The connection will give market participants increased access to foreign markets and liquidity pools, in turn allowing traders to hedge risks across multiple exchanges, arbitrage prices between markets and/or securities, as well as geographically diversify investment allocations.
With the establishment of a new CME Group international telecommunications hub in Mexico City, MexDer participants can leverage their existing MexDer front-end trading platform or API (application program interface) to route and execute trades on the CME Globex electronic trading platform.
In the first stage of the Order Routing Agreement, MexDer members and their customers will have access to CME Group products. The initial activity is expected to be performed by local members trading on a proprietary basis and they will incorporate customers orders in the coming weeks.
The second phase of the partnership is ("north-to-south") scheduled for Q3 this year, and will give CME Group market participants access to MexDer's benchmark interest rate and equity index derivatives.
While at Sibos Toronto, James shares some interviews covering topics on blockchain, fintechs and cybersecurity.Subscribe to Weekly Wrap emails