Bolsa Mexicana de Valores, the owner of Mercado Mexicano de
Derivados (MexDer), has entered talks with CME Group, which
could involve selling a minority stake in the BMV Group to the
Chicago exchange. BMV said in a statement on September 8 that
it was conducting discussions of "a preliminary nature".
The talks centre around a number of "commercial
arrangements" and "a possible minority equity component".
"No preliminary or definitive agreements have been executed
and there is no assurance yet that an agreement will be reached
between the parties," BMV said in a statement.
A spokesperson for CME Group in Chicago declined to comment.
BMV was unavailable for comment.
The talks centre on the derivatives arm of BMV –
MexDer, a common ground for BMV and CME.
Bernardo Mariano, an analyst at the Equity Research Desk, an
investment advisory firm in Greenwich, Connecticut, said the
announcement was "an excellent move" for Bolsa Mexicana.
A relationship between the two exchanges could mean an order
routing agreement or cross-listing of their products.
"For Bolsa Mexicana it’s an excellent deal,
because CME has about 150,000 terminals around the world and
that will provide MexDer with an audience. For them to achieve
150,000 terminals can take many years if not even decades,"
For CME Group the deal could mean being able to provide more
products to its existing clients or charging fees to distribute
the Mexican products, Mariano said. It could also reach new
customers in Mexico.
In October 2007, CME Group agreed a deal with São
Paulo-based BM&F Bovespa, whereby the US exchange acquired
a 5% stake in the Brazilian exchange, which received a 1.7%
stake in the CME Group.
The deal has involved a mutual order routing agreement, so
that BM&F Bovespa’s contracts are available
for electronic trading through CME’s Globex
platform, while CME’s contracts can be traded on
the Brazilian exchange’s system. The two groups
have also jointly developed new products.
Under the exclusive agreement with BM&F, CME is not
allowed to invest in other central and south American
exchanges. However, according to ERDesk, it is indeed allowed
to reach an agreement with BMV as an exception.
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