Indiana Grain Company, LLC

Posted: 03/10/10

By: tomgrisafi

The Mexican Stock Exchange, or BMV, and the CME Group have entered into a strategic alliance that includes an order routing agreement for derivatives products.

CME Group has acquired about 1.9 percent of the BMV’s outstanding shares under the terms of the equity portion of the deal for $17 million.

The BMV’s Control Trust, moreover, has granted CME Group the right to nominate a member of the Mexican exchange’s board of directors.

The exchanges plan to work together in several areas, such as “the development of new products, marketing, client training and a clearing agreement that will allow each company to clear the trades of the other’s clients,” the BMV said.

“Latin America is a key market for CME Group,” CME Group executive chairman Terry Duffy said.

“We are pleased to announce this new partnership with BMV which furthers our global strategy to offer customers increased access to our products while, at the same time, allowing BMV to use the CME Globex trading network to increase distribution of their products in North America,” Duffy added.

The order routing arrangement is scheduled to take effect in 2011, giving BMV clients access to CME Group’s benchmark derivatives contracts, including interest rates, foreign currencies, equity indexes, energy, metals and agricultural commodities.

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