Bolsa Mexicana growth curbed on derivatives rule delay, CEO says

Rules could be delayed until after 2013

Mexico’s delay of new derivatives regulations has cost the country’s stock exchange operator a source of revenue growth this year, Bolsa Mexicana de Valores SAB Chief Executive Officer Luis Tellez said.

Regulators probably won’t publish final rules requiring more derivatives trades to be processed on exchanges and clearinghouses until later in 2013 or beyond, Tellez said today in an interview in New York. Most investors had expected the rules on interest-rate derivatives, known as swaps, to take effect in January, Tellez said.

The regulators are concerned that stricter rules on Mexican swaps may push trading to the U.S., where new standards apply to swaps in dollars, euros, yen and pounds, he said.

The exclusion of peso swaps in the U.S. “is provoking second thoughts” on the part of the Mexican authorities, Tellez said.

Mexico City-based Bolsa’s shares, which surged 45 percent last year, have tumbled 8.9 percent this year.

The Mexican regulators are bound by a Group of 20 commitment to impose the stiffer derivatives rules eventually, Tellez said.

The rules, when passed, would have a “positive, significant impact” on Bolsa’s revenue, Tellez said.

Bloomberg News

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