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Mexico issues rules to beef up derivatives trading oversight 

May 16, 2014
Michael O'Boyle, Reuters

Mexico published new rules on Thursday aimed at boosting oversight of derivatives trades and centralizing the clearing of transactions in a bid to minimize risks of a market crisis.

Mexico's financial authorities have been working on new rules agreed to in general by the Group of 20 economic powers after risky derivatives trading helped fuel the 2007-2009 financial crisis and led to multi-billion dollar taxpayer bailouts.

The regulations published in Mexico's Federal Register by the Finance Ministry, the banking and securities regulator and the central bank set up a framework for independent clearing houses to settle derivatives trades made on exchanges or other platforms.

"It is necessary to modify current regulation to promote more transparency and order in the derivatives market," the ministry said.

Read more: Reuters

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