Enhanced Investments - Financial Portal

CME Group to Launch Mexican F-TIIE Interest Rate Futures

Published: 2021-04-20 11:00:00 ET

CHICAGO and MEXICO CITY, April 20, 2021 /PRNewswire/ -- CME Group, the world's leading and most diverse derivatives marketplace, today announced it will introduce interest rate futures based on the Central Bank of Mexico's Overnight TIIE funding rate (F-TIIE). Monthly contracts based on the Mexican F-TIIE Rate will become available for trading on May 24, 2021, pending regulatory review.

The Mexican peso-denominated contract will be cash settled against the compounded F-TIIE rate over monthly contract periods. F-TIIE is published daily by the Central Bank of Mexico and is based on the highly developed and liquid Mexican repo market. The contract aligns with the Central Bank of Mexico's objectives to develop robust risk-free rates (RFR) and establish a domestic funding curve.

"We are delighted to support the objectives of the Central Bank of Mexico. From managing the economic risk of central bank policy changes or hedging Bondes D coupons, to creating new yield curves and developing RFR-based products, clients can utilize this new futures contract in a variety of different ways," said Agha Mirza, Global Head of Rates and OTC Products at CME Group. "We expect the new Mexican F-TIIE rate futures to complement our existing OTC Mexican interest rate swaps clearing business, our dollar-peso FX futures contracts and CME's SOFR futures, reinforcing our leading position as the home of risk-free rate futures."

"We are fully supportive of the adoption of RFRs that align with global standards and help to further enhance liquidity in our underlying F-TIIE rate. The development of a deep and liquid derivatives market is key for establishing F-TIIE as a benchmark rate for Mexico," said Gerardo Garcia, General Director of Market Operations, Central Bank of Mexico. "We welcome this move from the CME Group to help facilitate derivatives trading and enhance liquidity in the Mexican interest rate market."

Mexican F-TIIE Rate futures will be listed with and subject to the rules of CME. For contracts specifications or more information, please visit: www.cmegroup.com/ftiie.

As the world's leading and most diverse derivatives marketplace, CME Group (www.cmegroup.com) enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data – empowering market participants worldwide to efficiently manage risk and capture opportunities. CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on interest rates, equity indexes, foreign exchange, energy, agricultural products and metals. The company offers futures and options on futures trading through the CME Globex® platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform. In addition, it operates one of the world's leading central counterparty clearing providers, CME Clearing. With a range of pre- and post-trade products and services underpinning the entire lifecycle of a trade, CME Group also offers optimization and reconciliation services through TriOptima, and trade processing services through Traiana.

CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex, and, E-mini are trademarks of Chicago Mercantile Exchange Inc. CBOT and Chicago Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc. NYMEX, New York Mercantile Exchange and ClearPort are trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. BrokerTec, EBS, TriOptima, and Traiana are trademarks of BrokerTec Europe LTD, EBS Group LTD, TriOptima AB, and Traiana, Inc., respectively. Dow Jones, Dow Jones Industrial Average, S&P 500 and S&P are service and/or trademarks of Dow Jones Trademark Holdings LLC, Standard & Poor's Financial Services LLC and S&P/Dow Jones Indices LLC, as the case may be, and have been licensed for use by Chicago Mercantile Exchange Inc. All other trademarks are the property of their respective owners.

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SOURCE CME Group

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Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.