© 2010 CME Group. All rights reserved CME Group – BMV Electronic Trading Overview & Customer On-Boarding February 3rd, 2011 Partnership Overview Customer Focused Partnership Benefits for Customers, BMV, CME Group Customers • Access every major derivatives asset class on CME Globex • Safety of CME Clearing BMV Group • Leverage CME Group global distribution, risk management expertise Partnership Benefits • Leverage CME Group sales, marketing and customer relationships CME Group • Broaden customer access and increase trading volume of CME Group products • Develop relationships with non-US brokers and regulators © 2010 CME Group. All rights reserved 4 Partnership Overview MOU for joint efforts in market development 2-way Order Routing for Derivatives Long-Term Strategic Partnership Board Level Involvement Equity Investment 1: Excludes MexDer customers from Mexico or Latin America; 30% gross revenue share of revenue for direct collocation customers © 2010 CME Group. All rights reserved 5 Order Routing Overview South to North North to South U.S. Customer Direct or Indirect Relationship Direct or Indirect Relationship Mexican Customer MexDer Translation CMEG Clearing Globex CMEG Translation Asigna MexDer Seamless Access to Customers © 2010 CME Group. All rights reserved 6 Customer On-Boarding: South to North Establishing a relationship with a CME Group Clearing Member Firm • MexDer Members wishing to trade CME Group products must satisfy all of the appropriate US regulatory requirements in order to be authorized to trade. • Mexican entities wishing to trade CME Group contracts must have an account established with a CME Group Clearing Firm. • This firm is responsible for the settlement of all transactions with the CME Group Clearinghouse. • The Mexican entity may alternatively trade through an omnibus account at a CME Group Clearing Firm set up by an intermediary. • Many MexDer clearers and brokers have pre-existing relationships with CME Group Clearing Firms; therefore the process may also be facilitated for MexDer customers by their existing MexDer Broker or Clearing Firm. • A list of CME Clearing Firms is available on the http://www.cmegroup.com/tools-information/clearing-firms.html • For questions regarding establishing a relationship with a CME Group Clearing Member Firm, you may also contact Global Account Management at CME Group: CME Group Global Account Management 312 634 8700 or email globalaccountmanagement@cmegroup.com © 2010 CME Group. All rights reserved CME Group web site at: 8 Accessing CME products through a MexDer Clearing or Trading Member • New Customer would contact their MexDer Clearing member or MexDer Trading member and request access to the CME market. • MexDer Clearing member or MexDer Trading member will need to setup a CME clearing member relationship. This relationship can be direct or indirect • CME clearing member would work with CME Group and MexDer to provide access to the new MexDer customer. • The MexDer clearing member or MexDer trading member would provide this information to (BMV contact) so they can setup the account in RTS. The setup would include account number, iLink session, market data access markets. • If a MexDer customer, chooses to establish a relationship with a CME Group Clearing Firm independently, a list of CME Clearing Firms is available on the CME Group web site at: http://www.cmegroup.com/tools-information/clearing-firms.html © 2010 CME Group. All rights reserved 9 Electronic Trading Overview: South to North Order Routing Basics: MexDer to CME Group BMV customers will be able to leverage their existing connectivity to MexDer to trade CME Group products: • All CME, CBOT, NYMEX and COMEX market data will be available via MexDer connectivity • Orders will route “South to North” from the customer’s MexDer connection via a high speed international circuit to CME Globex • All CME Group products clear at the CME Clearing House • CME Group Clearing Firm relationship required • Targeted launch early Spring 2011 © 2010 CME Group. All rights reserved 11 Available CME Group products Asset Class Product Name Agriculture Corn Futures ZC Agriculture Corn Options OZC Energy E-mini Natural Gas Futures QG Energy Light Sweet Crude Oil Futures CL Equity Indexes E-mini Dow ($5) Futures YM Equity Indexes E-mini NASDAQ-100 Futures NQ Equity Indexes E-mini S&P 500 Futures ES Equity Indexes E-mini S&P 500 Options ES FX British Pound Futures 6B FX E-mini Japanese Yen Futures J7 FX Euro FX Futures 6E FX Japanese Yen Futures 6J FX Mexican Peso Futures 6M Interest Rates 10-Year U.S. Treasury Note Futures ZN Interest Rates Eurodollar Futures GE Metals Gold Futures GC Metals Silver Futures SI © 2010 CME Group. All rights reserved Globex Symbol 12 South to North Connectivity: Order Routing to CME Group via existing Line to MexDer CMEG Mexico Globex Hub 40 Mbps line 40 Mbps line OR MexDer Infrastructure Customer MexDer Broker/ Clearing Member Account with CMEG Clearing Firm required US FCM Lines to MexDer Mexico © 2010 CME Group. All rights reserved Globex Credit Controls set by CMEG Clearing Firm U.S. CMEG Globex Match Engine Mapping of Mexder accounts with CME accounts • Once the relation with a CME Clearing Firm is established, MexDer will map the account information on the interfaces • The MexDer member will send orders to CME seamlessly • MexDer members will trade both MexDer and CME products from the same “trading screen” • All CME trades will reach the correct account at the CME Clearing Firm • Clearing and settlement activities of CME products will be conducted by the CME Clearing Firm © 2010 CME Group. All rights reserved 14 Customers using the MexDer provided RTS screen Customers using the MexDer provided front end system (RTS screen) will not require any additional certification • Key business functionality: Order Types •Market (with protection) •Limit •Stop with protection •Stop Limit •Market Limit Order Qualifiers •Day •Good Till Cancel (GTC) •Good Till Date (GTD •Fill and Kill (FAK) Market Data •Futures Book-Depth Supported – Full •Options Book-Depth Supported – Full •Implied Price and Quantity Display Advanced Functionality •In-Flight Mitigation (IFM) •User Defined Spreads •Request for Quote (RFQ) •Indicative Prices •Give-Ups • MexDer Members utilizing the RTS front end trading screen provided by MexDer will need a direct connection to MexDer with Telmex as its provider. • Contacts at MexDer: For any assistance please contact José Miguel de Dios and Irma Gonzalez at 5342 9913 and 5342 9916 or josemd@mexder.com.mx and irmag@bmv.com.mx © 2010 CME Group. All rights reserved 15 Customers who want access via the FIX API 4.2 interface For customers who wish to use a non-exchange provided front-end or proprietary systems, MexDer requires additional certification in order to ensure they can correctly support CME Group products, Market Data and order routing. • Key business functionality: Order Types •Market (with protection) •Limit •Stop with protection •Stop Limit •Market Limit • Order Qualifiers •Day •Good Till Cancel (GTC) •Good Till Date (GTD •Fill and Kill (FAK) Market Data •Futures Book-Depth Supported – Full •Options Book-Depth Supported – Full •Implied Price and Quantity Display Advanced Functionality •In-Flight Mitigation (IFM) •User Defined Spreads •Request for Quote (RFQ) •Indicative Prices •Give-Ups There are many options to connect to the testing or production environments, for additional information - please refer to the document “Connecting to MexDer”. © 2010 CME Group. All rights reserved 16 Customers who want access via the FIX API 4.2 interface • Connection specifications: http://www.mexder.com/inter/info/mexder/avisos/Connecting%20to%20 MexDer.pdf • Link to documentation necessary for the APIs: http://www.mexder.com/inter/info/mexder/avisos/RTD_FIX_API_Specifi cation.pdf • Who to contact at the exchange for assistance?: For assistance please contact Hector García and Irma Gonzalez at 5342 992 and 5342 9916 or hjgarcia@bmv.com.mx and irmag@bmv.com.mx © 2010 CME Group. All rights reserved 17 Customers who want access via the FIX API 4.4 interface Customers who wish to use a non-exchange provided front-end or proprietary systems, MexDer requires additional certification in order to ensure they can correctly support CME Group products, Market Data and order routing. Please contact Hector García or Irma Gonzalez at 5342 9927 or 16 for support on the certification process. • MexDer will provide an API that supports the actual functionality that MexFix supports for trading MexDer products • Key business features: Order Types •Limit © 2010 CME Group. All rights reserved Order Qualifiers •Day Market Data •Futures Book-Depth Supported – Full •Options Book-Depth Supported – Full Advanced Functionality •Request for Quote (RFQ) •Give-Ups 18 Electronic Trading on CME Globex CME Globex Hub in Mexico In conjunction with the strategic partnership between CME Group and BMV, CME Group will launch a new telecommunications hub in Mexico City Region targeted for 2011: • Provides new CME Group hub in the Mexico City region • Standard, redundant international hub • Access to all CME Group and Partner Exchange products • Facilitates connectivity and reduces latency to the Globex network for Mexican and Latin American customers © 2010 CME Group. All rights reserved Connection to CME Group Hub in Mexico via Dedicated Lines CMEG Mexico Globex Hub 40 Mbps line Globex Credit Controls set by CMEG Clearing Firm US FCM Customer MEXICO © 2010 CME Group. All rights reserved Account with CMEG Clearing Firm required U.S. CMEG Globex Match Engine CME Globex Order Routing Messaging New Order Filled New Order Customer OR Order Acknowledgement Fill Broker © 2010 CME Group. All rights reserved CME Globex Match Engine CME Globex Order Routing Messaging New Order with Partial Fills New Order (10 contracts) Order Acknowledgement Customer OR Partial Fill (2) Broker Partial Fill (2) Partial Fill (6) © 2010 CME Group. All rights reserved CME Globex Match Engine CME Globex Order Routing Messaging Order Modification New Order Order Acknowledgement Customer CME Globex Match Engine OR Order Cancel/Replace (Modification) Broker Cancel/Replace Acknowledgement Fill © 2010 CME Group. All rights reserved CME Globex Order Routing Messaging Order Modification with Partial Fill New Order Order Acknowledgement Customer OR Partial Fill Broker Order Cancel/Replace (modification) Cancel/Replace Acknowledgement Fill © 2010 CME Group. All rights reserved CME Globex Match Engine CME Globex Order Routing Messaging Order Cancellation New Order Customer Order Acknowledgement OR Order Cancel Broker © 2010 CME Group. All rights reserved Order Cancellation Acknowledgement CME Globex Match Engine CME Group Trade Cancellation Policy If an order execution occurs at a price not representative of the current market, the CME Group Globex registered contact may call the GCC to request to have the trade reviewed • To invoke the policy a Globex registered contact** must call the GCC (Globex Control Center) within eight minutes of the error trade • CME Group Clearing Member firms will call on behalf of customers who are not GCC authorized contacts • In order to cancel or price adjust a trade, the GCC determines if the trade is within the Non-Reviewable Range (if it is, the trade stands) • If a trade is outside the Non-Reviewable Range, the GCC messages all CME Globex registered contacts via Targeted Messaging and the quote vendor network alerting that the trade has been cancelled or adjusted **Only CME Group Clearing Firms may request Globex Control Center registered contact status on behalf of their customers. Please refer any questions to your CME Group Clearing Firm © 2010 CME Group. All rights reserved 27 Electronic Trading Overview: North to South Order Routing Basics: CME Group to MexDer CME Group customers will be able to leverage their existing connectivity to CME Globex to trade MexDer products: • All MexDer interest rate and equity index derivatives product market data will be available on the CME Globex platform • Orders will route “North to South” from the customer’s CME Globex connection via a high speed international circuit to MexDer’s matching engine • All MexDer traded products clear at Asigna • Asigna Clearing Firm relationship required • Targeted launch in the second half of 2011 © 2010 CME Group. All rights reserved 29 North to South Connectivity: Order Routing to MexDer via existing line to CME Globex CMEG Mexico Globex Hub 40 Mbps line 40 Mbps line OR Lines to Globex Customer CME Globex Infrastructure Account with MexDer Clearing Firm required Asigna Clearing Member CMEG Broker US © 2010 CME Group. All rights reserved MexDer Match Engine MEXICO Product Availability – MexDer products • Asset Class Product Name MexDer Symbol Equity Indexes IPC Futures IPC Equity Indexes IPC Options IP FX U.S. Dollar Futures DEUA FX U.S. Dollar Options DA FX Euro /Peso futures EURO Interest Rates TIIE Futures TE28 Interest Rates CETE Futures CE91 Interest Rates M3 Bond Futures M3 Interest Rates M10 Bond Futures M10 Interest Rates M20 Bond Futures M20 Interest Rates 2 Y TIIE Swap Futures 02 Interest Rates 10 Y TIIE Swap Futures 10 Inflation Indexes UDI Futures UDI For more information about MexDer products go to: http://www.mexder.com.mx/MEX/Futures_Contracts.html and http://www.mexder.com.mx/MEX/Options_Contracts.html © 2010 CME Group. All rights reserved 31 Comentarios Finales © 2010 CME Group. All rights reserved