Lesson in Financial Regulation in Mexico: Part 2

Continued from Lesson in Financial Regulation in Mexico: Part 1.

Since 2007, the government has been gradually easing restrictions on pension fund investments. In February 2010 pension funds were allowed to invest in private equity. Most recently, in March 2011 investment was allowed for the first time in select foreign currencies (US dollars, euros and Japanese yen only).

In March 2011 the Mexican stockmarket (Bolsa Valores Mexicana -- BMV) formed a derivatives order routing partnership with CME Group (the US-based entity created from the merger of the Chicago Mercantile Exchange and the Chicago Board Options Exchange in July 2007). The BMV's derivative products are offered through its subsidiary, the Mexican Derivatives Exchange (Mercado Mexicano de Derivados -- MexDer). The first part of the arrangement, launched in April 2011, granted Mexican investors direct access to CME Group's products through MexDer. The second part, expected to go live in the third quarter of 2011, will allow international investors direct access to MexDer derivatives through CME Group.

Source: Economist Intelligence Unit