With an aim to boost transparency and limit risk in the opaque market, Mexican authorities are developing new derivatives rules in line with international standards Mexico’s central bank governor Agustin Carstens said.
Carstens said the central bank, finance ministry and bank regulator were discussing plans to improve margin management and counterpart registration.
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"Many derivatives imply international operations so it would be desirable for Mexico to adjust to international regulation," Carstens added.
Risky trading in swaps, a type of derivative, at firms like insurer American International Group helped fuel the 2007-2009 financial crisis which led to multi-billion dollar taxpayer bailouts in the United States and elsewhere.
A swap is a financial contract in which two parties exchange cash flows on debt, currencies, or other assets, to hedge risk or make a profit.
With memories of that financial crisis still raw, Group of 20 countries agreed in late 2009 that derivatives like interest rate swaps and credit default swaps should be traded on electronic platforms, centrally cleared and recorded, by the end of 2012.
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