Do you have what it takes to trade CME Group Product from Mexico? South to North Connectivity

Transcription

1 Do you have what it takes to trade CME Group Product from Mexico? South to North Connectivity December 9, 2013

2 Disclaimer Futures trading is not suitable for all investors, and involves the risk of loss. Futures are a leveraged investment, and because only a percentage of a contract s value is required to trade, it is possible to lose more than the amount of money deposited for a futures position. Therefore, traders should only use funds that they can afford to lose without affecting their lifestyles. And only a portion of those funds should be devoted to any one trade because they cannot expect to profit on every trade. All references to options refer to options on futures. Swaps trading is not suitable for all investors, involves the risk of loss and should only be undertaken by investors who are ECPs within the meaning of section 1(a)12 of the Commodity Exchange Act. Swaps are a leveraged investment, and because only a percentage of a contract s value is required to trade, it is possible to lose more than the amount of money deposited for a swaps position. Therefore, traders should only use funds that they can afford to lose without affecting their lifestyles. And only a portion of those funds should be devoted to any one trade because they cannot expect to profit on every trade. Any research views expressed are those of the individual author and do not necessarily represent the views of the CME Group or its affiliates. CME Group is a trademark of CME Group Inc. The Globe Logo, CME, Globex and Chicago Mercantile Exchange are trademarks of Chicago Mercantile Exchange Inc. CBOT and the Chicago Board of Trade are trademarks of the Board of Trade of the City of Chicago, Inc. NYMEX, New York Mercantile Exchange and ClearPort are registered trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. KCBOT, KCBT and Kansas City Board of Trade are trademarks of The Board of Trade of Kansas City, Missouri, Inc. All other trademarks are the property of their respective owners. The information within this presentation has been compiled by CME Group for general purposes only. CME Group assumes no responsibility for any errors or omissions. Additionally, all examples in this presentation are hypothetical situations, used for explanation purposes only, and should not be considered investment advice or the results of actual market experience. All matters pertaining to rules and specifications herein are made subject to and are superseded by official Exchange rules. Current rules should be consulted in all cases concerning contract specifications. Copyright 2013 CME Group. All rights reserved CME Group. All rights reserved. 2

3 Customer Focused Partnership Benefits for Customers. BMV, CME Group Customers Access every major derivatives asset class on CME Globex Safety of CME Clearing BMV Group Leverage CME Group global distribution, risk management expertise Leverage CME Group sales, marketing and customer relationships Partnership Benefits CME Group Broaden customer access and increase trading volume of CME Group products Develop relationships with non-us brokers and regulators 2013 CME Group. All rights reserved. 3

4 Partnership Overview 2-way Order Routing for Derivatives MOU for joint efforts in market development Long-Term Strategic Partnership Board Level Involvement Equity Investment 2013 CME Group. All rights reserved. 4

5 Order Routing Overview South to North Mexican Customer Direct or Indirect Relationship MexDer Translation CMEG Clearing Globex Seamless Access to Customers 2013 CME Group. All rights reserved. 5

6 Customer On-Boarding South to North

7 Order Routing Basics: MexDer to CME Group BMV customers are able to leverage their existing connectivity to MexDer to trade CME Group products: CME, CBOT, NYMEX and COMEX market data will be available via MexDer connectivity * For a list of products available for order routing please refer to MexDer customers have the opportunity to trade both MexDer and CME products from the same trading screen Orders will route South to North from the customer s MexDer connection via a high speed international circuit to CME Globex All CME Group products clear at the CME Clearing House CME Group Clearing Firm relationship required Once the relationship with a CME Clearing Firm is established, customers will work with MexDer to map the account information 2013 CME Group. All rights reserved. 7

8 Establishing a relationship with a CME Group Clearing Member Firm and other order routing considerations MexDer Members wishing to trade CME Group products must satisfy all of the appropriate US regulatory requirements in order to be authorized to trade. Mexican entities wishing to trade CME Group contracts must have an relationship established with a CME Group Clearing Firm as this firm will be responsible for the settlement of all transactions with the CME Group Clearinghouse. Many MexDer clearers and brokers have pre-existing relationships with CME Group Clearing Firms; therefore the process may be indirectly facilitated for MexDer customers by their existing MexDer Broker or Clearing Member Firm. The Mexican entity may alternatively trade through an omnibus account at a CME Group Clearing Firm set up by an intermediary. The MexDer clearing member or MexDer trading member would provide this information to MexDer so they can permission the account in RTS. The setup includes account number, ilink session, and products of interest for market data considerations For questions regarding establishing a relationship with a CME Group Clearing Member Firm, you may also contact CME Group Global Account Management at or globalaccountmanagement@cmegroup.com 2013 CME Group. All rights reserved. 8

9 CME Group Products Available Through MexDer Order Routing Agreement Agriculture Energy Equity Indexes FX Interest Rates Metals Corn Futures Corn Options E-Mini Natural Gas Futures Light Sweet Crude Oil Futures E-Mini Dow ($5) Futures E-mini NASDAQ-100 Futures British Pound Futures E-mini Japanese Yen Futures 2-Year U.S. Treasury Note Futures 5-Year U.S. Treasury Note Futures Wheat Futures E-mini S&P Futures Euro FX Futures 10-Year U.S. Treasury Note Futures Gold Futures Gold Options Silver Futures Wheat Options E-mini S&P Options Japanese Yen Futures Eurodollar Futures Copper Futures Soybean Futures Soybean Options Soybean Meal Futures Soybean Meal Options Mexican Peso Futures Mexican Peso Options 2013 CME Group. All rights reserved. 9

10 Electronic Trading Overview South to North

11 South to North Connectivity: Order Routing to CME Group via existing Line to MexDer CME Group Mexico Globex Hub 45 Mbps line CMEG Globex Match Engine Order Routing 45 Mbps line MexDer Infrastructure Globex Credit Controls set by CMEG Clearing Firm Customer MexDer Broker/ Clearing Member Lines to MexDer US FCM Account with CMEG Clearing Firm required Mexico U.S CME Group. All rights reserved. 11

12 CME Globex Hub in Mexico In conjunction with the strategic partnership between CME Group and BMV, CME Group launched a new telecommunications hub in Mexico City Region in 2011: Provides new CME Group hub in the Mexico City region Standard, redundant international hub Access to all CME Group and Partner Exchange products Facilitates connectivity and reduces latency to the Globex network for Mexican and Latin American customers 2013 CME Group. All rights reserved. 12

13 Connection to CME Group Hub in Mexico via Dedicated Lines CMEG Mexico Globex Hub 45 Mbps line Globex Credit Controls set by CMEG Clearing Firm CMEG Globex Match Engine Customer US FCM Account with CMEG Clearing Firm required MEXICO U.S CME Group. All rights reserved. 13

14 Incentive Programs and Contact Details

15 South and Latin America Incentive Programs Latin America Commercial Incentive Program (LACIP) Allows commercial agricultural hedgers in the Latin America region to receive discounted fees for their proprietary trading of CME Group Commodity products. As of early 2010, extended to energy and metals commercial hedgers. Latin American Bank Incentive Program for Proprietary Trading of CME Group Products (LABIP) Allows banks in Latin America to receive discounted fees for their proprietary trading of CME Group products. Fund Manager Incentive Program (FMIP) Allows fund management firms (Fund Managers) in Latin America to receive discounted fees for the trading of certain CME Group products for approved fund accounts which are managed by the fund manager. For additional info: CME Group. All rights reserved. 15

16 Contact Information Issue MexDer CME Group Order Routing, Certification and Connectivity Jose Miguel De Dios Chief Operating Officer 52 (55) Alejandro Valdez Partner Exchange Manager 52 (55) Adam W. Smith Partner Exchange Acct. Mgr Products and Incentive Programs Berenice Corral VP Business Development 52 (55) Charles Farra Exec. Director, International P&S Anne Schankin Assoc. Dir., International P&S CME Group. All rights reserved. 16

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