Cme Group Inc. · NASDAQ:CME

Cme — MexDer — Investor Presentation (October 2012)

35 slides from Cme's investor presentation, October 2012

  1. Slide 1: North to South Market Maker Program

    North to South Market Maker Program

  2. Slide 2: Agenda

    Agenda g 9 I t d ti Introduction 9 Benefits 9 How to participate? 9 Products overview

  3. Slide 3: Agenda

    Agenda g 9Introduction 9 Benefits 9 How to participate? 9 Products overview

  4. Slide 4: Introduction

    Introduction • MexDer is the derivatives subsidiaryy of BMV Group the financial exchange operator in Mexico. • Fully electronic market place, as a self-regulated g it has a flexible legal exchange g framework. • CME Group and MexDer joined forces to link the trading platforms, a world of opportuniti

  5. Slide 5: Agenda

    Agenda g 9 Introduction 9 B Benefits fit 9 How to participate? 9 Products overview

  6. Slide 6: Benefits

    Benefits ƒ With the CME Group – MexDer order routing agreement MexDer products will be available il bl in i more than th 100,000 100 000 CME Globex® Gl b ® screens. ƒ No Withholding Taxes when trading in MexDer. ƒ No local presence required in Mexico. ƒ Omnibus Accounts: Rule 30.7 (CFTC) segregation

  7. Slide 7: Agenda

    Agenda g 9 Introduction 9 Benefits 9How to participate? 9 Products overview

  8. Slide 8: How to participate?

    How to participate? p p 1. As a Client of an MCM 2. A an Omnibus As O ib Account A t in i MexDer M D 3. As a Client of a MexDer Omnibus Account 4. As a Remote Member http://www.mexder.com/MEX/Open_an_Account_-_Trading_and_Clearing_Members.html

  9. Slide 9: How to participate?

    How to participate? p p 1. As a Client of an MCM. ƒ Fastest and easiest way to take advantage of the CME Group – MexDer order routing agreement (ORA) . ƒ Have access to CME Globex ƒ Direct execution in MexDer, Co-location available. ƒ Clears through g a MexDer Clearing g Member (MCM), the only paper

  10. Slide 10: (1) As a Client of an MCM

    (1) As a Client of an MCM Lines to GLOBEX Prop Trader : GLOBEX As saCClient e toof Infrastructure US an MCM 40 Mbps line MEXICO Account with MCM required Mexico GLOBEX Hub 40 Mbps line MCM (Asigna Clearing Member) (Paperwork required) Co-location Match Engine available

  11. Slide 11: How to participate?

    How to participate? p p 1. As a Client of an MCM ƒ Executing g as a customer of a Trading g Member or even through g an Omnibus Account. 2. As a MexDer Omnibus Account. ƒ The CME member that qualifies as an omnibus account executes directlyy in MexDer and clears through a MexDer Clearing Member. ƒ M

  12. Slide 12: (2) As a MexDer Omnibus Account

    (2) As a MexDer Omnibus Account Lines to GLOBEX CMEG Member : GLOBEX Infrastructure As a MexDer Omnibus US Account 40 Mbps line MEXICO Account with MCM required Mexico GLOBEX Hub 40 Mbps line MCM (Asigna Clearing Member) (Paperwork required) Match Engine

  13. Slide 13: How to participate?

    How to participate? p p 1. As a Client of an MCM. ƒ Executing g as a customer of a Trading g Member or even through g an Omnibus Account. 2. As a MexDer Omnibus Account . ƒ The CME member that qualifies as an omnibus account executes directly in MexDer and clears through a MexDer Clearing Member. ƒ

  14. Slide 14: (3) As a Client of a MexDer Omnibus account

    (3) As a Client of a MexDer Omnibus account Lines to GLOBEX Customer: GLOBEX CMEG Member: Infrastructure As a Client of a MexDer Omnibus Account US 40 Mbps line Omnibus Account (NO additional paperwork required) MEXICO Mexico GLOBEX Hub 40 Mbps line MCM (Asigna Clearing Member) Match Engine

  15. Slide 15: How to participate?

    How to participate? p p 1. As a Client of an MCM. ƒ Executing as a customer of a Trading Member or even through an Omnibus Account. 2. As a MexDer Omnibus Account . ƒ The CME member that qualifies as an omnibus account executes directly in MexDer and clears through a MexDer Clearing Member. ƒ The om

  16. Slide 16: (4) As a Remote Member

    (4) As a Remote Member Lines to GLOBEX GLOBEX CMEG Member: Infrastructure MexDer member & Omnibus Account US 40 Mbps line MEXICO Account with MexDer Clearing Member required ((Paperwork p required) Mexico GLOBEX Hub 40 Mbps line MCM (Asigna Clearing Member) (Paperwork required) Co-location Match Eng

  17. Slide 17: Agenda

    Agenda g 9 Introduction 9 Benefits 9 How to participate? 9 Products overview

  18. Slide 18: Products overview

    Products overview «= |PC/FUT swxnvusp CC aaMxe O _BRTRAC 10 4— CEMEXCPO QO. GMEXICOB O NAFTRAGC TELMEX L TLEVISA CPO WALMEX V == TIE Yn) 2 Yr. Centrally Cleared SWAP o 10 Yr. Centrally Cleared SWAP 5S CEES 4+—— M3 Bond = M10 Bond LL M20 Bond MXN/USD MXN/EURO IPC ILCTRAC BRTRAC 10

  19. Slide 19: Let's take a closer look

    Let’s take a closer look: 9 IPC Futures 9 MXN/USD Futures 9 Bond Futures

  20. Slide 20: Let's take a closer look: IPC Futures

    Let’s take a closer look: 9 IPC Futures 9 MXN/USD Futures 9 Bond Futures

  21. Slide 21: IPC Futures

    IPC Futures ƒ Underlying, IPC - Mexican Exchange Index. ƒ Capitalization Index Ticker Symbol: IPC Q t ti Quotation: I d P Index Points i t Size: IPC x $ 10 MXN Tick: 5 points p Tick Size: $ 50 MXN // $ 4.16 USD * Notional Size: $370, 000 MXN ***// $30, 833 USD*** Maturity Months: Quarterly, up to on

  22. Slide 22: IPC Futures volume and open interest

    IPC Futures ƒ Leading indicator of the Mexican Stock market. ƒ Highly Hi hl correlated l t d with the S&P. S&P ƒ 2010 return USD 26.83% IPC Future (ADV) 6,000 100,000 VOLUME OPEN INTEREST 90,000 5,000 EST 80,000 OPEN INTERE 70,000 VOLUME 4,000 60,000 3,000 50,000 O 40 000 40,000 2,000 30,000 20,000

  23. Slide 23: Options on the IPC Future

    Options on the IPC Future ƒ Underlying, IPC Future ƒ 2010 Implied I li d Volatility: V l tilit 20.8% 20 8% Ticker Symbol: IP Quotation: Index Points Style: European Tick: 1 point Size: IPC x $10 MXN M t it Months: Maturity M th Q t l up to Quarterly, t one year Settlement: Cash Trading Hours: 07:30

  24. Slide 24: Options on the IPC Future

    Options on the IPC Future Options on the IPC Future Volume Open Interest 700 VOLUMEN INTERÉS ABIERTO 16,000 600 14,000 n Interest 12,000 500 UME 10,000 Open VOLU 400 8,000 300 6,000 200 4,000 100 2,000 0 0 2004 2005 2006 2007 2008 2009 2010

  25. Slide 25: Volatility Index Mexico (VIMEX) vs VIX

    Volatility Index Mexico (VIMEX) vs VIX® VIMEX® VIX® 85 80 75 70 65 60 ƒ Arbitrage Opportunities 55 50 45 40 35 30 25 20 15 10 5 29‐Aug 8‐Oct 24‐Aug 19‐Aug 5‐Feb 3‐Oct 31‐Jan 28‐Sep 22‐Mar 17‐Mar 26‐Apr 5‐Jun 21‐Apr 1‐May 20‐Jul 15‐Jul 12‐Mar 10‐Jul 17‐Nov 12‐Nov 7‐Nov 2‐Jan 11‐Feb 10‐Jun 27‐Dec 22‐D

  26. Slide 26: Let's take a closer look: MXN/USD Futures

    Let’s take a closer look: 9 IPC Futures 9 MXN/USD Futures 9 Bond Futures

  27. Slide 27: MXN/USD Futures

    MXN/USD Futures ƒ Underlying, United States of America - Dollar. ƒ Arbitrage opportunity t it with th MXN/USD Futures of the CME Group. ith the Group Ticker Symbol: y DA MR11 ** Quotation: Price Size: $ 10,000 USD Ti k Tick: $0 0.0001 0001 MXN Tick Size: $ 1 MXN // $ 0.0833 USD * Notional Value: $10

  28. Slide 28: MXN/USD Futures

    MXN/USD Futures ƒ Volume increased 255% in 2010 vs 2009. ƒ Opportunities O t iti forf HFT quoting ti on a screen USD Dollar Futures (ADV) 30,000 300,000 VOLUME OPEN INTEREST 25,000 250,000 EREST 20,000 200,000 ME VOLUM OPEN INTE 15,000 150,000 10,000 100,000 5 000 5,000 50 000 50,000 - 0 2005 2006 2

  29. Slide 29: Let's take a closer look: Bond Futures

    Let’s take a closer look: 9 IPC Futures 9 MXN/USD Futures 9 B d Futures Bond F

  30. Slide 30: Bond Futures

    Bond Futures ƒ Underlying, Bonds issued by the Mexican government (BBB+). ƒ The most actively traded securities in Mexico ƒ A benchmark for Mexican domestic interest rates. Ticker Symbol: M3/ M10/ M20 Quotation: Price Si Size: $100 000 MXN $100,000 Tick: $ 0.025 MXN // $ 0.00208 USD * Tick Size: $ 2

  31. Slide 31: Bonds Futures

    Bonds Futures Foreign Investment in MXN Debt ƒ M Bonds included in the WGBI $40,000 $35,000 Government Securities Index Index. $30,000 MILLIONS) ƒ Very important foreign $25,000 $20,000 participation USD (M $15,000 ƒ Most efficient way to hedge or $10,000 short the Mexican y yield $5,000 $0 curve. D

  32. Slide 32: Bonds Futures Contracts

    Bonds Futures Contracts M3 Future (ADV) VOLUMEN M10 Future ((ADV)) 4,500 40,000 INTERÉS ABIERTO 14,000 140,000 OPEN INTE 4,000 35,000 VOLUMEN INTERÉS ABIERTO OPEN INT 3,500 30,000 12,000 120,000 LUME LUME 3,000 10,000 100,000 25,000 2,500 8,000 80,000 VOL 8 000 80 000 TEREST EREST 20,000 20 000 VOL

  33. Slide 33: Bond Futures: Arbitrage Opportunities

    USD U $110 $112 $114 $116 $118 $120 $122 $124 $126 $128 Jun 10 Jun 10 Jun 10 Jun 10 Jun 10 Jul 10 Jul 10 Jul 10 Jul 10 Aug 10 A Aug 10 A Aug 10 A Aug 10 A Aug 10 A Sep 10 S Sep 10 S Sep 10 S Sep 10 S Oct 10 Oct 10 Oct 10 10 Year T-Note Futures JN 11 Oct 10 Nov 10 N Nov 10 N Nov 10 N Nov 10 N Nov 10

  34. Slide 34: Final remarks

    Final remarks • Opportunity to participate in a developing market . • End customers, FCMs, prop traders, high frequency traders. • Easy access • Market a et Making a g incentive ce t e pprogram. og a • Liquidity and depth in the underlying securities; d development l t in th i derivatives i their d

  35. Slide 35: Key Contacts

    Key Contacts ƒ BMV MexDer ƒ P&S Berenice Corral VP Business Development bcorral@mexder.com +52 555342 9930 ƒ Operations Luis Acevedo Chief Operation Officer lacevedo@mexder.com +52 55 5342 9910 ƒ Clearing Member Firms: http://www.mexder.com/MEX/Open_an_Account_-_Trading_and_Clearing_Members.html ƒ C

MexDer — Investor Presentation (October 2012) on 6ix