MXN/USD Futures Contract
October, 2014.
MXN/USD Futures Contract: Description
• The MXN is the eighth most traded currency in the world, the third
most traded in the Americas and the most traded in LATAM.
• MXN has become the main hedging currency for emerging countries
in the same geographical region, specially those that lack local
liquidity.
• High yields offered in Mexican Fixed Income instruments, attract
large international cash flows, thus incrementing FX Derivatives
trading volume.
• Useful product to create synthetic rates
•
Daily vs Monthly spreads (Fx Strip)
www.mexder.com
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MXN/USD Futures Contract: Specifications
Underlying:
US Dollar
Contract Size:
$10,000 Dollars
Delivery Months:
Daily, monthly and quarterly, up to 15 years
Trading Symbol:
DA
Quotation:
Pesos per Dollar
Tick:
0.0001 Pesos
Tick Value:
$1 Peso
Tick Ratio/ Fee:
0.36 times.
Initial Margin:
$9,000 pesos.
Opposite Margin:
$3,600 pesos
Trading Hours:
7:30 to 14:00 hours.
Last Trading Day:
Monday of the week of the third Wednesday of the contract month
Maturity date:
Monday of the week of the third Wednesday of the contract month
Settlement:
Physical delivery.
Bloomberg <MMDD>
DSA<CRNCY>CT
Reuters MXN/FUTEX1
0#MXP:
www.mexder.com
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MXN/USD Futures Contract: Specifications
•
Initial margin of $ 9,000.00  Leverage 14:1
•
Listed Series:
•
•
•
•
Daily (up to 5 business days)
Monthly or
Quarterly
Up to 15 years
•
Settlement = T+2
•
Trading Symbol (example):
 DA16 JN15, where:
16
Delivery day
JN
Delivery month
15
Delivery year
* Clearing Members may require additional margin
www.mexder.com
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MXN/USD Futures Contract
• Participants: Banks, FCM’s, Pension Funds, Mutual Funds, liquidity
providers.
• Competitive trading and clearing costs.
www.mexder.com
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MXN/USD Futures Contract: Uses
• Hedging
•
Importers with USD commitments.
• Exporters that receive USD flows.
• Dollar Credits.
• Infrastructure financing.
• Arbitrage
MexDer’s Dollar Future vs CME’s Peso Future.
• Currencies with significant correlation.
•
• Strategies:
•
USD funding
• Synthetic Interest Rates in pesos and in dollars. (FX Strip).
www.mexder.com
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MXN/USD Futures Contract: Benefits.
• Smaller contract size = more precise hedging.
• High level of Open Interest = Portfolio hedging
• Constant quotations and liquidity in the first 9 monthly deliveries.
• Expiring Futures available
• 40% volume growth in the last year.
• Easy access and easy execution
www.mexder.com
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MXN/USD Futures Contracts
• August 2014: Open Interest and Volume Record.
• Competitive execution and clearing fees.
www.mexder.com
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MXN/USD Futures Contracts: Trading Screens.
• Daily deliveries.
• Monthly deliveries.
• Trading book depth.
www.mexder.com
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Hedging Strategy for a Local Exporter Producer
USD$ 915,350.00
MXN$ 12,550,363.85
June 17'15
Today
Risk  Exchange Rate Dropping
USD$ 915,350.00
@ 13.7110 MXN / USD
MXN$ 12,614,120.00
MexDer´s Dollar Futures Sell
June 17'15
Today
MXN$ 12,614,120.00
-MXN$ 62,097.50
MXN$ 12,552,022.50
Dollar buy on the Cash Market
USD$ 915,350.00 ± 91.53 contracts 92 DA15 JN15 contracts
@ 13.7110 MXN / USD
USD$ 4,650.00.00
@ 13.3543 MXN / USD
June 17'15
MXN$ 62,097.50
MXN$ 12,223,858.51
MXN$ 12,552,022.50
MXN$ 328,163.99
Hedged a loss of:
10
Synthetic MXN Financing
MXN$ 9,542,116.00
June 17'15
251 days
Spot Date
MXN rate for 251 days
USD rate for 251 days
FX Spot rate
DEUAF JN15
3.34 %
0.2643 %
13.4396
.2265/.2292
(FWD Points 251 days)
MXN financing requirement (spot)
A
MXN$ 9,542,116.00
Borrow MXN @ 3.34%
251 days
Spot Date
June 17'15
Pure MXN
Financing
@ 3.34%
MXN$ 9,764,325.38
B
USD$ 710,000.00
Borrow USD @ .2643%
June 17'15
251 days
Spot Date
USD$ -711,308.36
DEUAF JN15 FX Strip
USD$ 710,000.00
71 DA17 JN15 contracts
@ 13.4396 + .2292 = 13.6688
MXN$ 9,542,116.00
Sell DA07 OC14 Future
Spot Date
USD$ -710,000.00
71 DA07 OC14 contracts
@ 13.4396
June 17'15
251 days
Buy DA17 JN15 Future
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MXN$ 9,704,848.00
Synthetic MXN
Financing
@ 2.446%
MexDer in the Vendors
MexDer Reference in:
Bloomberg: MMDD <GO>
Thomson Reuters: 0#MEXDER-MEXICO
SiBolsa - App
Reference Code in Vendors
Bloomberg
Thomson Reuters
MexDer General Reference
MMDD <GO>
MX/FUTEX1
Futures General Reference
MMDF <GO> +2 <GO>
MXN/FUTEX1
Options General Reference
MMDO <GO> +3 <GO>
MXN/OPT1
SWAPS General Reference
MXN/SWAP1
MMDD <GO> 6 <GO>7 <GO>
Most common Node SWAPS
VIMEX (Mexican Volatility Index)
MXNIRS=XD
VIMEX Index <GO>
Conversion Factors
www.mexder.com
VIMEX
MX/FACTOR1
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SiBolsa
Contact:
Natalia Cueto
[email protected]
(5255) 5342 9002
www.mexder.com
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MexDer in the Vendors: Futures Contracts
Bloomberg
Thomson Reuters
FUTURES
CURRENCIES
Mexican Peso/ U.S. Dollar
DSA<CRNCY>CT
0#MXP:
US. Dollar Daily Contracts
DSDAILY<CRNCY>CT
0#MXPD:
Mexican Peso/ Euro
BEA<CRNCY>CT
0#EURO
INDICES
<INDEX>
IPC (Mexican Stock Exchange Index)
ISA<INDEX>CT
0#IPC:
INDIVIDUAL STOCKS
SFUT MD
MXN/FUTEX2
28 day TIIE (Interbank Interest Rate)
DOA<CMDTY>CT
0#TII:
28 day TIIE Strip
MMDD <GO> --> 4 --> 7
10 year IRS Futures Deliverable Centrally Cleared SWAP
SWIA<CMDTY>CT
0#SWA10:
2 year IRS Futures Deliverable Centrally Cleared SWAP
SWEA<CMDTY>CT
0#SWA02:
91 day Cetes (MXN Treasury Bill)
GMA<CMDTY>CT
0#CTE:
3 year Bond in MXN (M3)
MAA<CMDTY>CT
0#BN0:
10 years Bond in MXN (M10)
DWA<CMDTY>CT
0#B10:
Specific 10 Year M Bond (DC24)
DCYA<CMDTY>CT
0#DC24:
Specific 20 Year M Bond (MY31)
MYOA<CMDTY>CT
0#BD31M:
20 year Bond in MXN (M20)
VYBA<CMDTY>CT
0#B20:
30 year Bond in MXN (M30)
VYCA<CMDTY>CT
0#B30:
www.mexder.com
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MexDer in the Vendors: Options Contracts
Bloomberg
Thomson Reuters
ISA<INDEX>OMON
0#IPC*.XD
MXX<CRNCY>OMON
0#DA*.XD
America Móvil L
AMXL MM <EQUITY> OMON
0#AX*.XD
Cemex CPO
CEMEXCP MM <EQUITY> OMON
0#CX*.XD
Tlevisa CPO
TLEVICPO MM <EQUITY> OMON
<0#TV*.XD>
GMéxico B
GMEXICOB MM <EQUITY> OMON
<0#GM*.XD>
Walmex V
WALMEXV MM <EQUITY> OMON
0#WA*.XD
Naftrac 02
NAFTRAC <EQUITY> OMON
0#NA*.XD
BRTRAC 10
BRTRAC MM <equity> OMON <GO>
0#BR*.XD
INDICES
Futures on the IPC
CURRENCIES
OPTIONS
Mexican Peso/ U.S. Dollar
INDIVIDUAL STOCKS
ETF’s
www.mexder.com
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Contact us
 Berenice Corral
(5255) 5342-9930
[email protected]
 Reynaldo Lozano
(5255) 5342-9921
[email protected]
www.mexder.com
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Interactive Brokers
presents
MEXDER Offering
Judith Casasampere
Interactive Brokers Corp.
[email protected]
Member SIPC www.sipc.org
www.ibkr.com/webinars
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Our Business
• We are the largest U.S. electronic broker as measured by revenue trades
• Recognized industry leader Barron’s #1 electronic broker 3 year straight
• Interactive Brokers has 252,000 customer accounts and $5.2 billions equity
capital (as of Jun-14)
• Our clients are over 190 countries
• Almost 45% of our Revenues come from Commisions and Executions,
over 70% is generated in the USA
• Rating S&P is A2/A- and stable
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IB - MEXDER Products
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IB Margin Requirements - Mexder
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• Mission
• Growth
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