The 10-year old Mercado Mexicano de Derivados (MexDer), Mexico’s derivative exchange, has made a global name for itself. Unlike many of its emerging market peers, the exchange has taken steps to enable international members to operate remotely. The legal, regulatory and technological moves required for remote trading make MexDer a leading example of how to promote derivatives trading despite a small local market and stalled IPO issuance. "Back in 2004 the exchange was struggling. We have now turned things around," says MexDer chief executive Jorge Alegria. "The first step was to get international members trading here and for that we needed to modernize the exchange. Now we have eight international members, including Morgan Stanley and Goldman Sachs."
In 2004, the Mexican exchange signed an agreement with Meff, Spain’s futures and options exchange, to share technology and help Mexico develop an options market. Then, between 2005 and 2006, Alegria focused on revamping the legal framework in Mexico.