Considerations for the Design of a Central Counterparty for the Mexican Money Market

Abstract

The financial crisis has brought the problems of regulatory failure and unbridled counterparty risk to the forefront in financial discussions. In the last decade central counterparties have been created in order to face those insidious problems. In Mexico both the stock and the derivatives markets have central counterparties but the money market has not. This paper addresses the Issue of creating a central counterparty for the Mexican money market. Recommendations that must be followed in the design and the management of risk of a central counterparty given by international regulatory institutions are presented in this study. Also two different conceptual designs for a central counterparty appropriate for the Mexican market are proposed. Final conclusions support the creation of a new central counterparty for the Mexican money market.

La crisis financiera ha puesto en la agenda de las discusiones financieras los problemas sobre fallas en las regulaciones y el riesgo descontrolado de la contrapartida. En la última década se han creado contrapartidas centrales para enfrentar estos insidiosos problemas. En México tanto la bolsa como los mercados de derivados tienen contrapartidas centrales pero el mercado de divisas no. En este estudio se presentan las recomendaciones que deberán seguirse para el diseño y manejo deriesgo de una contrapartida central hechas por instituciones reguladoras internacionales. Al mismo tiempo se proponen dos diseños conceptuales diferentes de contrapartidas centrales apropiadas para el mercado mexicano. Las conclusiones finales sustentan la creación de una nueva contrapartida central para el mercado de valores mexicano