Glossary

Access Code(s).  A unique, non-transferable and personal alphanumeric code that the user introduces in the terminals of the Electronic Trading System, to obtain access to the same, and which constitutes the user's electronic signature in transactions performed on (through) the Exchange.

Accredited Personnel.  Individuals who have been designated by Clearing Members and Traders to act as Promoters, Desk Traders, risk managers and account managers, and which have been accredited by the Exchange.

American Style Option(s).  An Option Contract that gives the Buyer the right to exercise the put or call at any time, within the trading hours established by the Exchange, during the life of the contract.

Arbitration Panel.  The collegiate body that assists the Committee on Discipline and Arbitration, which is responsible for resolving disputes between Clearing Members or Traders, or between Clients and Clearing Members and Traders, by means of arbitration.

Auction.  Means of creating Futures Contracts through the double-market system, in which all Clearing Members, Traders and Clients have the right to participate simultaneously as Buyer and Seller. The price at which the auction takes place is obtained from the Bid and Offer prices at which the greatest number of Contracts was traded.

Auditing committee. The collegiate body of the Exchange responsible for assisting the Board of Directors in its auditing duties.

Bid or Offer.  An offer to buy (Bid) or sell (Offer) a number of Contracts of a Series at a specific price, presented by a Clearing Member or Trader through the Electronic Trading System.

Board of Directors.  The Board of Directors of the Exchange.

Bulletin.  The medium for distribution of market information generated in Exchange trading sessions, as well as information regarding Underlying Assets, Clearing Members, Traders, and the Clearinghouse.

Business Day(s).  Any day on which banks and brokerage firms are open for business and engage in transactions in accordance with current regulations.

Buyer(s).  In a Futures Contract, the party that is obliged to pay the Settlement Balance at Expiration to the counterparty, on the Settlement Date.  In an Option Contract, the party that pays a Premium to acquire from the Seller the right, but not the obligation, to buy or sell an Underlying Asset.

Certification Committee.  The collegiate body of the Exchange responsible for assisting the Board of Directors in its certification duties.

Certifying Institution. The self-regulated institution authorized by the Exchange to certify the technical capacity of the personnel of Clearing Members, Traders, and the Clearinghouse.

Chairman.  The person appointed under the terms of the Exchange's corporate charter, and approved by the Authorities to perform the duties of Chairman of the Council. 

Chief Executive Officer.  The individual appointed under the terms of the Exchange's corporate charter, and approved by the Authorities to perform the duties of Chief Executive Officer of the Exchange.

Class(es).  All Futures Contracts which are based on or refer to the same Underlying Asset; or

All Call Options based on or referenced to the same Underlying Asset; or

All Put Options based on or referenced to the same Underlying Asset

Clearing Member.  A trust which is a member of the Exchange and which owns a share in the equity of the Clearinghouse, whose purpose is to settle and, in some cases, enter into exchange-listed Futures and Option Contracts on behalf of Clients.

Clearinghouse.   Mercantile negotiation that will be established by the trustee, charged to the equity of Trust number F/30,430, whose purpose is to clear and settle Futures and Option Contracts, as well as to act as counterparty for every transaction performed on the Exchange; it is identified by the trade name of "Asigna Compensación y Liquidación."

Client(s).  Party or parties who enter into Futures and/or Options Contracts on or through the Exchange, through a Clearing Member or a Trader acting as broker for a Clearing Member, and whose counterparty is the Clearinghouse.

Committee on Admission and New Products. The collegiate body of the Exchange responsible for assisting the Board of Directors in the technical duties of implementing and developing new products and trading mechanism, and admitting and approving shareholders of the Exchange, Clearing Members, and Traders, and accrediting their personnel.

Committee on Compliance and Ethics.  The collegiate body of the exchange responsible for assisting the Board of Directors in its regulatory and ethical duties.

Committee on Disciplinary Measures and Arbitration.  The collegiate body of the Exchange responsible for assisting the Board of Directors in its disciplinary and arbitration duties.

Compliance Officer.  The party appointed under the terms of the corporate charter of the Exchange, authorized by the National Banking and Securities Commission, and responsible for monitoring compliance with the Rules, Provisions, and self-regulatory standards issued by the Exchange and Clearinghouse, as well as other provisions issued by the Authorities and applicable to the market; and also responsible for proposing modifications to the self-regulatory standards to the Board of Directors of the Exchange.

Conciliator.  A party designated under the terms of these Regulations to perform the duties of conciliator between parties in the event of a dispute within a conciliation procedure.

Contract(s).  Any Future or Option Contract.

Contribution(s).  Cash, securities or other assets approved by the Authorities, which must be delivered to Clearing Members, or when applicable, Traders, for every Open Contract, to ensure their compliance with the obligations derived from Futures or Options Contracts.

Cross Transaction.  A transaction performed through the presentation of one Bid and one Offer in the Electronic Trading System, by the same Clearing Member or Trader, providing that both Bids come from Clients.

Daily Settlement Price or Closing Price.  In a Futures Contract, the reference price per unit of the Underlying Asset, which the Exchange communicates to the Clearinghouse for the purpose of calculating the Daily Settlement.

Daily Settlement(s).  A sum of money that is required, received and submitted daily, as the case may be, resulting from the Clearinghouse's daily valuation of changes in the Closing Price of each Open Contract, against the Closing Price of the immediately preceding Business Day, or, if such is the case, against the contract price.

Depth Transaction.  A transaction performed by Market Makers through the trading-by-phone service, consisting of the presentation of Bids or Offers in a specific period of time during a trading session, at the same price as that of the last trade on record for that Series, and provided the total volume of the Bid or Offer displayed in the Electronic Trading System has been completed.

Desk Traders.  An individual hired by a Trader or Clearing Member to execute orders to enter into in Futures and Options Contracts through the electronic trading systems of the Exchange.

Disciplinary Panel.  The collegiate body that assists the Committee on Discipline and Arbitration, which is responsible for resolving cases of default on the obligations established in these Regulations and in the Operating Manual. 

Electronic System for Order Receipt and Registry and Transaction Assignment (or SRA).  The electronic system that each Clearing Member of Trader that engages in Third-Party Transactions must use to record Client Orders and to assign transactions that result from the execution of those Orders in the Electronic Trading System.

Electronic Trading System.  The system supplied by the Exchange for use by Clearing Members and  Traders in entering into Contracts.

European Style Option(s).  An Option Contract that gives the Buyer the right to exercise the put or call only on the Expiration Date.

Exchange.  The corporation known as MexDer, Mercado Mexicano de Derivados, S.A. de C.V. (the Mexican Derivatives Exchange), whose purpose is to supply the facilities and other services necessary for Futures and Option Contracts to be quoted and traded.

Exercise Date. The Business Day following the date on which the Buyer of an Option Contract has the power to exercise the right.

Exercise.  The power of the Buyer of an Option Contract to make effective the right agreed upon in the contract.

Expiration Date.  The business day on which the term of a Contract expires, according to the General Contract Conditions.

Financial Capacity.  The result of analysis performed with regard to a Client in order to determine the total amount of obligations it may assume in entering into Contracts.

Firm Transaction.  A transaction consisting of the presentation of one Bid or Offer in the Electronic Trading System, which is completed when the price of one Bid is equal to or greater than that of an Offer, or when the price of an Offer is equal to or less than the price of a Bid. 

Futures contract(s).  A standardized legal agreement specifying the term, amount, quantity and quality, among other features, to buy or sell an Underlying Asset at a certain price, to be settled at a future date.

General Contract Conditions.  The standardized characteristics of each Futures and Options Contracts.

If the Futures Contract  specifies payment of differences, the Underlying Asset shall not be physically delivered.

If the Option Contract specifies payment of differences, the Underlying Asset shall not be physically delivered.

In an Option Contract, the party which must sell or buy, as the case may be, the Underlying Asset at the price agreed on in the Contract.

In an Option Contract, the value of the Premium per unit of the Underlying Asset for each of the Series, which the Exchange communicates to the Clearinghouse for the purpose of calculating the Daily Settlement.

In the case of Option Contracts, all contracts belonging to a single Class with the same Strike Price, Style, Expiration Date and settlement procedure.

Liquidity Terms and Conditions.  Trading requirements established by the Exchange, which banks and brokerage firms authorized by the Board of Directors to engage in transactions on the Exchange, and which are considered Market Makers, must meet; obliging them to present Bids or Offers on a given number of Proprietary Transactions and within a price spread, in order to enhance market liquidity.

Long Position.  The number of Open Contracts in each of the Series with respect to which the Client acts as Buyer.

Margin. The contribution that each Clearing Member must deliver to the Clearinghouse for every Open Contract.

Market Maker(s).  Traders that have obtained approval from the Exchange to act in such capacity, and who must permanently and for their own account, maintain buy and sell bids on Futures and/or Options Contracts.

Market.  The market for Exchange-traded Futures and Option Contracts.

MexDer Account.  Individual account number assigned by the Exchange to each Client at the request of the Clearing Member, which is used to identify Transactions by Client, regardless of whether or not those Transactions are performed through different Clearing Members.

Open Contract(s).  A transaction performed on the Exchange by a Client through a Clearing Member, which has not been canceled by the same Client through the performance of a contrary transaction in the same series through the same Clearing Member.

Operating Manual.  Manual of Policies and Procedures establishing specific procedures and specifications for the Exchange, the Clearinghouse and Clearing Members and Traders in the performance of their duties.

Option Contract(s).  A standardized legal agreement by which the Buyer pays a premium to acquire from the Seller the right, but not the obligation, to buy (Call) or sell (Put) an Underlying Asset at an agreed-upon price and a future date; and the Seller is obliged to sell or buy, as the case may be, the Underlying Asset at the agreed-upon price. The Buyer may exercise the right as agreed upon in the respective contract.

Orders.Instructions drafted by a Client to buy or sell a given Series.

Participation.Act by virtue of which a Trading member or Trader participates in a cross or self-entry transaction, accepting the terms offered by the Clearing member or Trader that is performing the Transaction.

Transactions that are the result of a Participation shall be performed at the cross price plus one tick, if the Participation was a buy, or less one tick if it was a sell.

Position Limit (s).The maximum number of Open contracts a Client can maintain in the same Class or Series.

Premium. The reference value agreed upon as consideration for celebrating an Option Contract, which may be expressed in monetary units or calculated on the basis of yield rates, indices or any other unit.

Price. Reference value agreed upon as consideration in a Futures Contract, which may be expressed in monetary units or calculated on the basis of yield rates, indices or any other unit.

Process Delegate.  The person appointed by the Chief Executive Officer to assist in administering disciplinary processes, according to the obligations established in the Regulations.

Proprietary Position Clearing Member.  A trust whose purpose is to clear and settle only Transactions on behalf of the trustors--multiple-service banks, brokerage firms, and other entities belonging to the same financial group--as well as the Trader whose equity is wholly or partly owned by the above-mentioned institutions. 

Proprietary Trades.Those which are settled and, when applicable, performed by Clearing members exclusively on behalf of their trustor banks, brokerage firms and other financial entities that are part of the same financial group as that bank or brokerage firm, under the terms of the Rules, and those performed by Traders as Clients of a Clearing Member.

Provisions."Prudential provisions that apply to participants in the futures and exchange-listed options markets as regards their transactions," as published in the Official Gazette of the Federation on May 26, 1997, and modifications thereto.

Registry Code.  The codes that the Exchange assigns to each Clearing Member, Trader and Market Maker to identify its transactions in the Electronic Trading System.

Regulations. The Internal Regulations of the Exchange.

Rules. Refers to those "Rules governing companies and trusts involved in establishing and operating a market for exchange-listed futures and options," published in the Official Gazette of the Federation on December 31, 1996, and modifications thereto.

Sales Representative.  An individual authorized by a Clearing Member or Trader to handle instructions received from Clients to enter into transactions on the Exchange.

Self-Entry Transaction.  A transaction performed through presentation of one Bid and one Offer in the Electronic Trading System, by the same Clearing Member or Trader, provided that one of the Bids is made out of the proprietary account of a Clearing Member or Trader.

Seller(s). In a Futures Contract, the party which must deliver the Settlement Balance at Expiration to the counterparty on the Settlement Date.

Series. In the case of Futures Contracts, all Contracts belonging to a single Class with the same Expiration Date.

Settlement Balance at Expiration. In the case of a Long Position to be settled in kind, the amount obtained by multiplying the Settlement Price at Expiration by the number of units of the Underlying Asset referred to in the Futures Contract, by the number of Open Contracts.

In the case of a Short position to be settled in kind, the number of units of the Underlying Asset referred to in the Futures Contract, multiplied by the number of Open Contracts.

In the case of a Long or Short Position to be settled in cash, the difference between the Daily Settlement Price on the Business Day immediately preceding the Settlement Price, or the Strike Price and the Settlement Price at Expiration, multiplied by the number of units referred to in the Futures Contract, by the number of Open Contracts.

For a Long (Short) Position in Call Option Contracts whose payment or settlement is to be made by price differences and which expires with an intrinsic value, the cash amount that will be received from (delivered to) the Clearinghouse, obtained by subtracting the Strike Price from the Price or value of the Underlying Asset, and multiplying that amount by the number of units of the Underlying Asset involved in the Option Contract, by the number of Open Contracts.

For a Long position in Call Option Contracts and for a Short Position in Put Option Contracts, to be settled in kind, the amount obtained by multiplying the Strike Price by the number of units of the Underlying Asset involved in the Option Contract, and then by the number of contracts exercised as per instructions or assignment.

For a Short Position in Call Option Contracts and for a Long Position in Put Option Contracts, to be settled in kind, the number of units of the Underlying Asset involved in the Option Contract, multiplied by the number of assigned contracts, or exercised as per instructions.

For a Long (Short) Position in Put Option Contracts whose payment or settlement is to be made by price differences and which expires with an intrinsic value, the cash amount that will be received from (delivered to) the Clearinghouse, obtained by subtracting the Price or value of the Underlying Asset from the Strike Price, and multiplying that amount by the number of units of the Underlying Asset involved in the Option Contract, by the number of Open Contracts.

Settlement Date.  The business day on which obligations stemming from a Contract are due and payable, according to the General Contract Conditions. 

Settlement Price at Expiration.  The reference price per unit of the Underlying Asset, which is published by the Exchange, and on the bases of which the Clearinghouse settles the Futures Contracts on the Settlement Date.

The strike price per unit of the Underlying Asset of the Series of Option Contracts expiring and settled in kind, based on which the Clearinghouse performs settlement at expiration on the corresponding date.

The value of the Premium per unit of Underlying Asset of the Option Contract Series expiring and settled by price differences, which the Exchange communicates to the Clearinghouse for the purpose of performing settlement at expiration on the corresponding date.

Short Position.  The number of Open Contracts in each series with respect to which the Client acts as Seller.

Strike Price.  The price at which the Buyer of an Option Contract may exercise the agreed-upon right.

Style.The type of Option contract (American or European).

Third-Party Position Clearing Member.  A trust whose purpose is to clear and settle Third-Party Transactions.

Third-Party Trades.  Those which are settled and, when applicable, performed by Clearing Members on behalf of parties other than the trustor bank and/or brokerage firm, and any performed by Traders acting as brokers for a Clearing member.

Tick. The minimum permitted variation in the price of a Series.

Trader(s). Banks, brokerage firms and other individuals and corporations, whether or not they are members of the Exchange, whose purpose is to act as a broker of one or more Clearing members in entering into Futures and Option Contracts, and which may access the Exchange's Electronic Trading system to enter into such contracts.

When Traders engage in Futures and Options Contracts for their own accounts, they act as Clients.

Underlying Asset(s). Any good or reference index used as the basis for a Futures or Options Contract entered into on (through) the Exchange.