MEXICO CITY May 15 Mexico published new rules
on Thursday aimed at boosting oversight of derivatives trades
and centralizing the clearing of transactions in a bid to
minimize risks of a market crisis.
Mexico's financial authorities have been working on new
rules agreed to in general by the Group of 20 economic powers
after risky derivatives trading helped fuel the 2007-2009
financial crisis and led to multi-billion dollar taxpayer
The regulations published in Mexico's Federal Register by
the Finance Ministry, the banking and securities regulator and
the central bank set up a framework for independent clearing
houses to settle derivatives trades made on exchanges or other
"It is necessary to modify current regulation to promote
more transparency and order in the derivatives market," the
Unlike stock trades that go through exchanges, most
derivatives of Mexican financial assets are traded over the
counter directly between investors and institutions.
The rules also establish standards for corporate governance,
operations, auditing and security while giving clearing houses
the power to register information on derivatives trades.
The opaque derivatives trades that shook U.S. banks during
the financial crisis also dealt a harsh blow to Mexican
companies when risky derivatives bets exploded, sparking
concerns that more local firms were hiding big losses.
Further regulations on derivatives trades, including bigger
capital requirements to cover potential losses, will be
published by financial authorities, the ministry said.
(Reporting by Michael O'Boyle; Editing by Cynthia Osterman)