International derivatives marketplace CME Group today announced that nine market participants have cleared over-the-counter (OTC) Mexican Overnight Funding Rate (F-TIIE) index swaps since the company launched its clearing service on February 5.
The cleared F-TIIE overnight index swaps (OIS) represent more than 4.3 billion pesos (the equivalent of $250 million) in notional value and support Banco de México’s transition from its benchmark Interbank Equilibrium Interest Rate (TIIE) to the F-TIIE rate.
Market participants who have already cleared these swaps through CME Group include Banorte, BBVA, Goldman Sachs, HSBC, J.P. Morgan, Morgan Stanley, and Santander.
“Our new swaps clearing service provides critical infrastructure for clients navigating the F-TIIE benchmark transition,” said Agha Mirza, CME Group Global Head of Rates and OTC Products. “Looking forward, we will continue to work to deliver capital efficiencies to market participants to help advance the development of Mexico’s derivatives marketplace.”
In addition to clearing F-TIIE index swaps, CME Group offers F-TIIE futures, which trade alongside SOFR futures and MXN/USD FX futures, providing a comprehensive hedging solution for the short end of the Mexican interest rate curve.
