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Mexican firms asked to reveal derivatives exposure
December 4, 2008 / 8:13 PM / 9 years ago

Mexican firms asked to reveal derivatives exposure

MEXICO CITY, Dec 4 (Reuters) - Mexican companies have been asked by regulators to disclose their exposure to derivatives instruments after a number of firms lost billions of dollars in bad currency bets following a steep devaluation of the peso.

Companies listed on the country’s stock exchange will have to clarify their derivatives positions in publicly available filings to the stock exchange by Dec. 15, said a spokesman for the National Banking and Securities Commission, or CNBV.

Troubled retailer Comercial Mexicana COMEUBC.MX, cement maker Cemex (CX.N)(CMXCPO.MX) and other companies shocked investors when they revealed steep losses on their derivatives positions in October as the peso took its worst hit in a decade.

The losses sparked worries that other Mexican firms could also be sitting on big losses.

Comercial Mexicana is currently in talks with creditors to restructure its debt after bad currency bets inflated its obligations to $2 billion.

The government said in October that it would probe whether companies with large losses in derivatives had broken rules by not keeping investors informed. (Reporting by Noel Randewich and Michael O‘Boyle; editing by John Wallace)

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