Mexican Derivatives Exchange

March, 2008

2

What happened in 2007??

3

We are a modern Exchange

Electronic Access - MexFixRemote Membership

Omnibus Accounts

No Withholding Taxes

CFTC Approved products

USD collaterals

4

TIIE Swap, Very liquid in the OTC.

September 2007 - 10 Year TIIE Swap Futures launching.

1000 Times larger than Individual TIIE Future Contracts.

More precise hedging.

Easy monitoring and administration process.

TIIE Swap VS TIIE Futures

Credit lines, security, transparency.

Anonymous Market.

Position Netting.

Transaction Margins and costs.

5

2004 - February 2008

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

Jan

-04

Ma

r-0

4

Ma

y-0

4

Jul-

04

Se

p-0

4

No

v-0

4

Jan

-05

Ma

r-0

5

Ma

y-0

5

Jul-

05

Se

p-0

5

No

v-0

5

Jan

-06

Ma

r-0

6

Ma

y-0

6

Jul-

06

Se

p-0

6

No

v-0

6

Jan

-07

Ma

r-0

7

Ma

y-0

7

Jul-

07

Se

p-0

7

No

v-0

7

Jan

-08

Vo

lum

e (t

ho

usa

nd

s)

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

55,000

60,000

OI (th

ou

sand

s)

Volume (Thousand contracts)

OI (Thousand contracts)

28-Day TIIE Future

Less volume in the TIIE… ? ? ?

6

September 2007 - February 2008

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000S

ep-0

7

Oct

-07

No

v-07

Dec

-07

Jan

-08

Feb

-08

Vo

lum

e

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

OI

Volume OI

TIIE Swap Future

Lets take closer look… ! ! !

7

TIIE Future + TIIE Swap Future Contracts

2004 - February 2008

0

10,000

20,000

30,000

40,000

50,000

60,000

Jan-

04

Apr-0

4

Jul-0

4

Oct

-04

Jan-

05

Apr-0

5

Jul-0

5

Oct

-05

Jan-

06

Apr-0

6

Jul-0

6

Oct

-06

Jan-

07

Apr-0

7

Jul-0

7

Oct

-07

Jan-

08

Vo

lum

e (

tho

us

an

ds

)

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

OI (th

ou

sa

nd

s)

10 yr Interest Rate Swap

TIIE 28

OI

A closer look… ! ! !

8

10 Year Fixed Rate Bond Futures February 6, 2008

45.80%

42.07%

12.13%

Total (contracts) 21,440

Trading & Clearing MembersInstitutionalOther participants

Percentage of the Open Interest

Source: Asigna0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Cont

ract

(Tho

usan

ds)

Sep - Dic 2003 2004 2005 2006 2007

M10 - 10 Year Bonds Futures

150%

Great for arbitrage = T-note future vs M10 Bond

Volume increase in 2007 = 150%

Long term interest rate benchmark in Mexico.

(ADV)

10-Year Bond Futures Contracts

9

IPC Index Future Contracts

The IPC is a capitalization Index and the leading indicator of the Mexican Stock Exchange performance.

CFTC approved product.

Algo traders in place.

Volatility and liquidity.

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Co

ntr

ac

ts

2001 2002 2003 2004 2005 2006 2007

IPC Index Futures

Trading & Clearing MembersInstitutionalOther participants

Percentage of the Open Interest

Source: Asigna

(ADV)

10

Options on the IPC Index Future

0

100

200

300

400

500

600

Vo

lum

e -

Co

ntr

acts

Mar-Dic 2004 2005 2006 2007

Options on the IPC Index Future(ADV)

11

IPC: Historic Volatility

0%

20%

40%

60%

80%

100%

120%

Jan-

94Au

g-94

Mar-95

Oct-9

5May

-96

Dec-9

6Ju

l-97

Feb-

98Se

p-98

Apr-9

9No

v-99

Jun-

00Ja

n-01

Aug-

01Mar

-02Oc

t-02

May-0

3De

c-03

Jul-0

4Fe

b-05

Sep-

05Ap

r-06

Nov-0

6Ju

n-07

Jan-

08

IPC Volatility 10 Days 30 Days 60 Days 90 Days

Asian CrisisRussian CrisisLTCM Crash

Nasdaq Drop

WorldCom-EnronArgentinian Crisis

September

DecemberError

MexicanPresidentialElection

Chinese Market Adjustment

Subprime Crisis in

US

12

Volatility Index Mexico (VIMEX) vs VIX

10

15

20

25

30

35

40

45Mar-04

May-04

Aug-04

Oct-04

Dec-04

Feb-05

Apr-05

Jun-05

Aug-05

Oct-05

Dec-05

Feb-06

May-06

Jul-06

Sep-06

Nov-06

Jan-07

Mar-07

May-07

Jul-07

Sep-07

Nov-07

Feb-08

VIM

EX

5

10

15

20

25

30

35

VIX

VIMEX VIXSubprime Crisis

MexicanPresidentialElections

Chinese Market Adjustment

Financial Institutions Quarterly Reports

13

Coming up for 2008…

Based on the new favorable legal and Tax framework, we plan to launch Individual Stock Options Contracts on:

CEMEX (CX): One of the largest Cement producers of the world

TELEVISA (TV): The largest media company in the Spanish speaking world.

FEMSA (FMX): Coca-Cola and Beer Bottler in Mexico.

TELMEX (TMX): Local and long distance telephone services, internet and broadband access throughout Mexico.

WALMEX (V MM); Wal-Mart of Mexico

These names, plus AMERICA MOVIL (AMX) already listed represents a fair sample of the Mexican Equity market, and more than 65% of the Bolsa Index.

Liquidity on the underlying stocks, in Mexico and in NYSE through ADR’s.

14

Market Participants 2007

5 Clearing Members

29 Mexican Trading Members

2 Non Mexican Trading Members

23 Market Makers

+ 7 Omnibus Accounts

15

Market Participants 2008

5 Clearing Members

34 Mexican Trading Members

7 Non Mexican Trading Members

24 Market Makers

+ 13 Omnibus Accounts

16

Members

17

API / FIX Access MexDer provides Access via the Financial

Information eXchange (FIX) protocol.

Certified ISV’s:

ISV’s currently testing:

18

It’s easy to participate!

1. As an Omnibus Account.

Handling costumer accounts through a Trading Member or a Clearing Member.

2. As a Client.

Proprietary Trader as a costumer of a Trading Member.

3. As a Remote Member.

Non-Clearing Remote Membership with direct access to the trading system.

19

It’s never been so easy….

Contact Us!

(5255) 5342-9999 (5255) 5342-9930

From the US:

1 866 MEXDER1From the rest of the world:

Berenice Corralbcorral@mexder.com

The leading Marketplace for trading derivatives on Mexican benchmarks