Mexican Derivatives Exchange March, 2008 1 What happened in 2007?? 2 We are a modern Exchange Electronic Access - MexFix Remote Membership Omnibus Accounts No Withholding Taxes CFTC Approved products USD collaterals 3 TIIE Swap, Very liquid in the OTC. September Year TIIE Swap Futures launching Times larger than Individual TIIE Future Contracts. More precise hedging. Easy monitoring and administration process. TIIE Swap VS TIIE Futures Credit lines, security, transparency. Anonymous Market. Position Netting. Transaction Margins and costs. 4 28-Day TIIE Future Less volume in the TIIE ? ? ? 5 TIIE Swap Future Lets take closer look ! ! ! 6 TIIE Future + TIIE Swap Future Contracts A closer look ! ! ! 7 Total (contracts) 21,440 Trading & Clearing Members Institutional Other participants Percentage of the Open Interest Source: Asigna 150% Great for arbitrage = T-note future vs M10 Bond Volume increase in 2007 = 150% Long term interest rate benchmark in Mexico. (ADV) 10-Year Bond Futures Contracts 8 IPC Index Future Contracts The IPC is a capitalization Index and the leading indicator of the Mexican Stock Exchange performance. CFTC approved product. Algo traders in place. Volatility and liquidity. Trading & Clearing Members Institutional Other participants Percentage of the Open Interest Source: Asigna (ADV) 9 Options on the IPC Index Future (ADV) 10 IPC: Historic Volatility 11 Volatility Index Mexico (VIMEX) vs VIX 12 Coming up for 2008 Based on the new favorable legal and Tax framework, we plan to launch Individual Stock Options Contracts on: CEMEX (CX): One of the largest Cement producers of the world TELEVISA (TV): The largest media company in the Spanish speaking world. FEMSA (FMX): Coca-Cola and Beer Bottler in Mexico. TELMEX (TMX): Local and long distance telephone services, internet and broadband access throughout Mexico. WALMEX (V MM); Wal-Mart of Mexico These names, plus AMERICA MOVIL (AMX) already listed represents a fair sample of the Mexican Equity market, and more than 65% of the Bolsa Index. Liquidity on the underlying stocks, in Mexico and in NYSE through ADRs. 13 Market Participants Clearing Members 29Mexican Trading Members 2Non Mexican Trading Members 23Market Makers + 7 Omnibus Accounts 14 Market Participants Clearing Members 34Mexican Trading Members 7Non Mexican Trading Members 24Market Makers + 13 Omnibus Accounts 15 Members 16 API / FIX Access MexDer provides Access via the Financial Information eXchange (FIX) protocol. Certified ISVs: ISVs currently testing: 17 Its easy to participate! 1. As an Omnibus Account. Handling costumer accounts through a Trading Member or a Clearing Member. 2. As a Client. Proprietary Trader as a costumer of a Trading Member. 3. As a Remote Member. Non-Clearing Remote Membership with direct access to the trading system. 18 Its never been so easy. Contact Us! (5255) (5255) From the US: MEXDER1 From the rest of the world: Berenice Corral The leading Marketplace for trading derivatives on Mexican benchmarks