- This product broadens the range of current investors and participants in the Derivatives Market.
- Ideal instrument for retail investors who want to do strategies and have exposure to the Mexican Stock Exchange market through derivatives.
The Mexican Derivatives Market (MexDer) announced today the launching of a new product, the Mini IPC Futures Contract (Mini).
Mini Contracts are very popular and successful in international markets, as they are an ideal mechanism to provide retail investors access to the capital markets through derivative products with the same benefits, but with more accessible investments. Therefore The Mini is the best instrument for individuals to include strategies and the Mexican stock market performance in their portfolios.
The underlying is the IPC, which is the main Mexican stock market performance index. It is a capitalization weighted index of the 35 leading companies traded on the BMV (Mexican Stock Exchange). It is reviewed annually and includes the most liquid and representative listed stocks in Mexico. This Index is the main Mexican benchmark used by Financial Institutions in the equity market.
The Mini is one fifth of the IPC Futures Contract, and both are CFTC Approved. One of the most outstanding advantages of the Mini is that the transactional costs are less compared to those on the cash market. As with Futures, by using the Mini, investors can implement a leverage strategy that maximizes returns on portfolios, as well as conduct arbitrage between the Mini and the IPC Future or against the Naftrac (ETF). The Mini and the Future are also the most efficient options to take short positions in the capitals market.
The Mini is also available through the order routing agreement that MexDer has with the CME Group.
SPECIFICATIONS
Underlying: IPC or MexBol (Mexican Stock Exchange Index).
Contract Size: $2 (two pesos 00/100) multiplied by the IPC Value.
Delivery Months: Quarterly: March, June, September, December up to one year.
Trading Symbol: MIP
Quotation: IPC Index points.
Tick: 10 Points
Tick Value: $ 20 pesos
Tick Ratio/ Fee: 1.54 times
Initial Margin: $ 5,400 pesos
Opposite Margin: $ 3,240 pesos
Trading Hours: 7:30 to 15:00 hours.
Last Trading Day: Third Friday of the maturity month or the previous business day if such Friday is a non-business day.
Maturity date: Third Friday of the maturity month or the previous business day if such Friday is a non-business day.
Settlement: Next business day after maturity date.
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