In 2024, financial coverage for retail and institutional investors will focus on the exchange rate (peso-dollar) and interest rates, predicts José Miguel de Dios, general director of the Mexican Derivatives Market (MexDer). The director of the derivatives exchange in Mexico assured that this year, amid greater liquidity and broader client participation, Mexican peso futures contracts on the Chicago Mercantile Exchange (CME) Group reached a record average daily volume.
The continued growth of the Mexican economy is leading more clients to trade currency futures at CME Group. Meanwhile, as client participation continues to increase, they are focused on creating and maintaining continued liquidity that will support the long-term development of electronic foreign exchange markets in Latin America. The Mexican peso ended 2023 as the best year in its history with a gain of 13 percent against the US currency.
Bernardo Gattass, head of volatility trading at Itaú explained that many large global institutional investors would do well to add CME Group to their lists of price providers for Latin American currencies so that they can take advantage of the liquidity of both market makers global as well as local. He gave an example of currency futures operations in Latin America in 2023: Mexican peso contracts reached a record $1.8 billion in average daily volume (ADV) of equivalent reference value while Brazilian real futures also reached an all-time high of $300 million in equivalent benchmark ADV. This year will be one with extreme volatility in the financial market due to presidential elections in Mexico and the United States which raises the possibility of high fluctuations in assets for retirement workers and retail investors.