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Debt markets |
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Debt markets are physical and virtual forums and sets of rules that allow investors, issuers, and intermediaries to perform issuance, placement, distribution,
and trading operations with the debt instruments registered in the National Securities Registry.
Debt instruments are also known as fixed-rate instruments since they promise the holder a fixed
cash flow and payments that are determined in accordance with a specified, pre-established formula.
When shares are issued for the first time, they are traded in primary markets. When securities have been previously
acquired through public or private offerings, they can be traded in secondary markets.
The securities that are sold in this market are classified according to:
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Maturity: short term, medium term, and long term |
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Type of issuer: public (federal government, government-owned entities, states and municipalities, Banco de México) and private (non-government companies). |
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Credit rating: with or without investment grade |
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Type of interest: fixed, variable, or indexed |
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Legal characteristics: treasury notes and commercial paper, among others. |
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Stock markets |
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Stock markets are physical and virtual forums and sets of rules that allow investors, issuers, and intermediaries to perform issuance,
placement, distribution, and trading operations with the shares registered in the National Securities Registry.
When shares are issued for the first time, they are traded in primary markets. When securities have been previously acquired through public or
private offerings, they can be traded in secondary markets.
The securities that are traded on this market are classified according to:
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Type of issuer: private companies or investment companies |
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Type of security: preferred or common |
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Derivatives |
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Through a derivatives market, participants enter into contracts with instruments whose value is derived or contingent
upon the value of another asset or other assets, known as the underlying asset or assets. The key purpose of a derivatives market is to
provide financial hedging or investment instruments in order to foster adequate risk management.
The derivatives market is segmented as follows:
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Exchange market: Market on which trades are made through a recognized exchange.
In Mexico the derivatives market is known as Mexican Derivatives Exchange (MexDer). |
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MexDer currently trades futures and options contracts on the following financial assets: dollars, euros, bonds, shares, indexes, and interest rates. |
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Over-the-counter market: Market in which trades are agreed directly among buyers and sellers, without a key counterparty that reduces the credit risk. |
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Foreign exchange |
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On a foreign exchange market, buyers and sellers trade foreign currency. The volume of foreign currency transactions determines the daily prices of various currencies vis-à-vis others, and the exchange rate with respect to the national currency.
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