Mexico's central bank says U.S. to include TIIE 28 swaps in contracts

MEXICO CITY, Oct 3 (Reuters) - Mexico's central bank said on Monday that the U.S. Commodity Futures Trading Commission has decided to include the bank's interbank equilibrium interest rate of 28 days denominated in Mexican pesos in its list of swap contracts.

In 2015, the central bank determined that the 28-day TIIE swaps, the main local derivative, would be negotiated only in markets and platforms recognized by local financial authorities, part of a change in its operating rules.

"These are important actions to strengthen risk management in the markets where derivative transactions take place, promoting the healthy development of the financial system," said the central bank said in a statement.

The decision also reflects initiatives by financial authorities of the Group of 20 industrialized and developing economies designed to strengthen the derivatives market, the bank added.

(Reporting by David Alire Garcia; Editing by Shri Navaratnam)

Advertisement