FiNETIK – Asia and Latin America – Market News Network

Bolsa Mexicana de Valores, S.A.B. de C.V. (BMV: Bolsa), informs that in connection with certain information that has been circulating in the public regarding a possible transaction between the BOLSA MEXICANA DE VALORES, S.A.B. DE C.V. (“BMV”) and CME Group Inc (“CME”), BMV informs the public that it is conducting discussions of a preliminary nature with CME that encompasses a number of commercial arrangements and a possible minority equity component. No preliminary or definitive agreements have been executed and there is no assurance yet that an agreement will be reached between the parties.

Source: BMV, 08.09.2009

FiNETIK comments:
As FiNETIK understands form confidential sources in CME and BM&F BOVESPA, The two exchanges agreed to splitted and access the world according to a certain formula. The two exceptions, where both exchanges could compete agains each others will be Mexico and China.

Other news:

MexDer Weighs CME Partnership With An Eye Toward International Growth 16.09.2009

Market Comments:
Bolsa Mexicana de Valores, the owner of Mercado Mexicano de Derivados (MexDer), has entered talks with CME Group, which could involve selling a minority stake in the BMV Group to the Chicago exchange. BMV said in a statement today (September 8) that it was conducting discussions of “a preliminary nature”.

The talks centre around a number of “commercial arrangements” and “a possible minority equity component”.
“No preliminary or definitive agreements have been executed and there is no assurance yet that an agreement will be reached between the parties,” BMV said in a statement.

The talks centre on the derivatives arm of BMV – MexDer, a common ground for BMV and CME.

Bernardo Mariano, an analyst at the Equity Research Desk, an investment advisory firm in Greenwich, Connecticut, said the announcement was “an excellent move” for Bolsa Mexicana.
A relationship between the two exchanges could mean an order routing agreement or cross-listing of their products.

“For Bolsa Mexicana it’s an excellent deal, because CME has about 150,000 terminals around the world and that will provide MexDer with an audience. For them to achieve 150,000 terminals can take many years if not even decades,” Mariano said.

For CME Group the deal could mean being able to provide more products to its existing clients or charging fees to distribute the Mexican products, Mariano said. It could also reach new customers in Mexico.

In October 2007, CME Group agreed a deal with São Paulo-based BM&F Bovespa, whereby the US exchange acquired a 5% stake in the Brazilian exchange, which received a 1.7% stake in the CME Group.

The deal has involved a mutual order routing agreement, so that BM&F Bovespa’s contracts are available for electronic trading through CME’s Globex platform, while CME’s contracts can be traded on the Brazilian exchange’s system. The two groups have also jointly developed new products.

Under the exclusive agreement with BM&F, CME is not allowed to invest in other central and south American exchanges. However, according to ERDesk, it is indeed allowed to reach an agreement with BMV as an exception.

Filed under: BM&FBOVESPA, BMV - Mexico, Exchanges, Latin America, Mexico, News, BM&FBOVESPA, BMV Bolsa Mexicana de Valores, Brazil, China 中国, CME, Derivatives, DMA Direct Market Access, Emerging Markets, Exchanges, Mercado Electronico, MexDer, Mexico, Trade Connectivity