Mexican exchange operator Bolsa Mexicana De Valores (Bolsa) is setting up a new clearinghouse and trading platform to serve the country’s swaps market for getting a jump on planned regulations, Nasdaq reports. The market revamp is modeled on the U.S. Dodd-Frank financial law.
The move will open up a new range of Mexico’s derivatives market for the bourse and can strengthen its ties with Chicago-based exchange company CME Group. Interest-rate swaps, used by banks and municipalities to hedge mortgage exposure and bond issues, make up about 60 percent of the instruments traded.
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