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Tuesday, March 9, 2010

CME Group, Mexican exchange enter $17M pact

(Crain’s) — CME Group Inc. is partnering with Bolsa Mexicana de Valores SAB de C.V. in an agreement that will include a derivative order routing pact and the CME taking a $17-million stake in the Mexican derivatives exchange.

Under the routing agreement scheduled to start next year, CME will be the “exclusive exchange provider of derivatives order routing services” to the Mexican exchange outside of Latin America, and Bolsa will provide similar services to CME in Mexico, according to a release issued jointly Monday by the exchanges.

The two also will join in pursuing new products, clearing opportunities, and other “commercial” possibilities, the release said.

The $17-million investment will give CME a 1.9% stake in the Mexican exchange.

The pact “furthers our global strategy to offer customers increased access to our products while, at the same time, offering BMV to use the CME Globex trading network to increase distribution of their products in North America,” CME Chairman Terry Duffy said in the release.

In addition to reaching the Mexican market, the routing agreement will “soon” extend access on or through the CME Globex electronic trading platform to markets in Brazil, South Korea, Dubai and Malaysia, as well, CME CEO Craig Donohue said in the release.

The arrangement will give Bolsa customers access to CME’s derivatives contracts and expand their international reach while providing increased liquidity to Bolsa by way of more international investors, BMV Executive Chairman CEO Luis Tellez said in the release.

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