The financial crisis has slowed trading at Mexico City’s derivatives exchange, and led to some nasty smells in the OTC market. But participants are sure this is a temporary dip. Mexico’s market, led by MexDer, is full of drive. The exchange has up-to-date technology, is easily accessible to foreign traders, and could be on the verge of attracting a wave of new interest. Agnieszka Troszkiewicz reports.
Jorge Alegría Formoso, chief executive of Mercado
Mexicano de Derivados, is heading for Huatulco, a tourist
resort in southern Mexico. But instead of taking some time off,
he is attending the annual convention of Mexican pension
As Alegría explained when FOW caught up with him, he
is relentlessly working to attract new market participants to
MexDer, and pension funds, known as Afores (Administradoras de
Fondos de Retiro), are the country’s largest
They are increasingly given permission to use a wider range
of financial products, presenting a big opportunity for
On October 1, President Felipe Calderón proposed
allowing Afores to invest freely in stocks, which would involve
using single stock options. The reforms, which also include
allowing Afores to invest in infrastructure and IPOs, have yet
to be approved by the National Commission for the Pension
System (Consar) and by Banco de Mexico, the
country’s central bank.
"This is very good news for MexDer," Alegría says.
"Because of the changes in the regulation, we are very bullish
on individual stock options, and potentially individual stock
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