The Mexican Derivatives Exchange (MexDer) has announced the launch of a new instrument, the 10-Year Federal Government Bonds Futures (Bond M241205). The Specific Bond Future is an innovative product that has the most liquid Bond in the Mexican fixed income market as underlying, with approximately 25% of the total daily volumen.
This Futures contract is an ideal instrument for institutional investors to optimize portfolios that are looking for exposure in the attractive Mexican Bond market. Among other key benefits the investors will know at any time which bond will be received upon delivery at maturity.
In addition it complements the hedging alternatives that the Mexican and foreign investors can find in MexDer; it is the perfect hedging tool for the Bonds traded in the spot market -both have the same sensitivity- plus the arbitrage opportunity it provides against the Treasury Bond Market. Furthermore this contract allows high leverage, creation of short positions and an efficient capital use, a relevant factor worldwide to maximize returns with less market and counterpart risks, since all the trades are cleared in Asigna, the “AAA” Central Counterpart of MexDer.
“Besides the benefits for the local market: Banks, Brokerage Houses, Pension Funds (Afores), Mutual Funds and other institutional investors, the launch of this product is quite attractive for the International participants as well”, said Jorge Alegria, CEO of MexDer, “since 50% of the underlying asset is in foreign hands. Therefore the 10-year M Bond Future will be a very useful hedging and investment tool for them, which will attract new participants to MexDer”, he added.
This contract will be available through MexDer Trading Members, through Clearing Members and through the order routing agreement with CME Group via Globex.