Derivatives marketplace operator CME Group Inc (NASDAQ:CME) has announced that it cleared a record 1 trillion in Mexican peso (MXN) interest rate swaps in a single day, January 12, 2017, an equivalent of more than $47 billion in notional value.
January 12 cleared notional surpassed the previous record of MXN 659 billion ($32 billion) set on December 16, 2016.
Mexican Peso trading has gained popularity over the past few months, ahead of the inauguration later this week of U.S. President-Elect Donald Trump. Much of Mr. Trump’s rhetoric has been saved for Mexico, and what he considers a bad trade deal the U.S. has with Mexico as part of NAFTA.
“We are pleased that global market participants continue to turn to our OTC cleared swaps solution as their preferred venue to clear Mexican Peso TIIE swaps,” said Sean Tully, CME Group Global Head of Financial and OTC Products. “We continue to strive to provide efficiencies to this important marketplace, including the first cleared MXN compression cycle through TriOptima TriReduce, which removed more than 33,000 line items and reduced gross notional by MXN 6.23 trillion ($331 billion) on market participants’ balance sheets.”
CME Clearing began offering Mexican peso interest rate swaps clearing in 2013. To date, nearly 120 market participants have cleared MXN swaps at CME, with a cleared notional of over MXN 57 trillion ($3.1 trillion).