Digital Banking

Derivatives and Risk Solutions

OTC Derivatives

Exchange Rate and Interest Rates


We offer financial solutions to help you achieve your goals and manage market risks related to exchange and interest rates, providing you with greater security for your cash flow. At Monex, the advice you receive is personalized, as we tailor a hedging plan to fit your company's specific needs.

Derivative Market Features

At Monex, we operate OTC (Over the Counter) derivative products. We create a customized portfolio based on the financial requirements and needs of our clients.

We offer various tools to manage, control, or minimize financial risks.

It offers different tools to manage, control or minimize financial risks.

Coverage (Hedging).

Risk management.

What can be hedged?

 

Exchange rate

Currency exchange rate risks due to imports, exports, royalty payments, dividends, foreign credit payments, among others.

USD/MXN,  EUR/USD, EUR/MXN, CAD/USD, USD/JPY, USD/CNY and more.

 

Interest rates (Libor, TIIE)

Credit or investment hedging due to variability of local or foreign rates.

 

Stock Exchange Indexes

IPC (he Mexican Stock Exchange’s Price and Quotation Index)

The financial derivative products offered at Monex are the following

Underlying Assets: Exchange rate and IPC

Forwards:

Contracts that establish, in the present, the obligation to buy or sell in the future, a certain amount of an underlying asset at a determined fixed price. Entering into a forward contract does not imply an initial cost. Depending on your credit profile and  financial information, a deposit margin is requested as guarantee with the purpose of minimizing the risk of non-compliance.

Options:

Contracts that today grant the right (but not the obligation) to buy (Calls) or sell (Puts) in the future, a certain amount of an underlying asset, which can be determined by the client. A premium is paid for the right to this hedge.

Amongst others.

Underlying Assets: Interest Rates

Interest rate swaps

Exchange of interest rates (variable-fixed or fixed-variable) in the same currency to hedge credits or investments. Entering into a Swap contract does not imply any initial cost.

Cross Currency Swaps

Exchange of a payment flow in a determined currency for another flow of payment in a different currency, to hedge long-term credits or flows; there can be a simultaneous exchange of rates. Entering into a CCY Swap does not imply any initial cost.

Cap

Strategy that allows setting a roof over the interest rate, limiting the maximum cost of its debt and benefiting from a lowering-rate scenario. A premium is paid for the right of this coverage.

Floors

Strategy that allows establishing a floor under the interest rate, securing the minimum interest to receive by an investment, benefiting from a hike in the interest rates. A premium is paid for the right to this hedge.

Amongst others.

THE SUPPORT YOU NEEDED

SIGN UP NOW

REQUISITES

1

Contact your Account Executive

2

Allow us to perform a diagnosis

3

We submit solutions