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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.

Account(s):

Set of Transaction records that the Clearinghouse maintains for each Clearing Member, on the basis of which the clearing and settlement are carried out

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.

Administration Sub-Committee:

The collegiate body responsible for assisting the technical committee in its market faculties of verifying the appropriate execution of the clearing and settlement processes, and proposing the trading and account administrative criteria for Clearing Members and the Clearing house, among others.

American Style Option:

This is an Option Contract that gives the Buyer the right to exercise the put or call option at any time within regular Exchange trading hours, during the duration 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.

Asigna Trust:

Trust indenture number F/30,430.

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 Sub-Committee:

The collegiate body responsible for assisting the technical committee in its auditing duties.

Authorities:

Any or all of the following: the Ministry of Finance and Public Credit, the National Banking and Securities Commission, and Banco de México (the central bank).

Basic Initial Minimum Contribution (Margin):

The contribution that the Clearing Member must deliver to the Clearinghouse, which shall be established to hedge the portfolio against settlement risk, in the event of which, within a Class Group, the clearing of credits and debits in additional margins results in an amount less than the Margin.

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 Future 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.

Certifying Institution:

The self-regulatory body recognized by the Exchange for certifying the technical capacity of the personnel employed by Clearing Members and Traders and by the Clearinghouse.

Chairman:

The person appointed under the terms of the Asigna Trust and approved by the Authorities to perform the duties of Chairman of the Technical Committee of the Clearinghouse.

Chief Executive Officer:

The individual appointed under the terms of the Asigna Trust and approved by the Authorities to perform the duties of Chief Executive Officer of the Clearinghouse.

Class:

All Futures Contracts which are based on or refer to the same Underlying Asset.

All Call Options which are based on or refer to the same Underlying Asset.

All Put Options which are based on or refer to the same Underlying Asset.

Clearing Fund:

The fund created in the Clearinghouse out of resources in addition to the Margins that the Clearinghouse itself requires of Clearing Members, equivalent to ten percent of the Margins; as well as any other amount required of Clearing Members for this fund.

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 Options 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."

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 Options Contracts on behalf of Clients.

Client(s):

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

Client Account:

Transaction record that the Clearinghouse maintains within the clearing and settlement system for all the direct Clients of each Third-Party Position Clearing Member, on the basis of which clearing and settlement are carried out.

Closing Trade or Cancellation:

For record-keeping purposes, a Transaction which an Open Position is reduced, or which cancels the number of a Client's Open Contracts in a given series.

Compliance Officer:

The party appointed under the terms of the corporate charter of the Exchange and authorized by the National Banking and Securities Commission (CNBV), responsible for monitoring compliance with the Regulations, 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.

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 each open contract, to ensure their compliance with the obligations derived from Futures and Options Contracts.

Conciliation Account:

Record maintained by the Clearinghouse regarding Transactions performed as the result of trading errors by Third-Party Position Clearing Members.

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.

Contribution Fund:

The fund created in the Clearinghouse out of Margins submitted by Clearing Members for each Open Contract.

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, as well as the amounts corresponding to any Premiums that may have been agreed upon in the negotiation of Options Contracts.

Daily Settlement Price or Closing Price:

In Futures contracts, the reference price per unit of the Underlying Asset, which the Exchange communicates to the Clearinghouse for the purpose of calculating the Daily Settlement.

In Options Contracts, 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.

DALI:

The initials in Spanish of the Interactive Securities Deposit System owned and operated by S.D. Indeval, S.A. de C.V. for the administration and registration of securities.

Delivery Period:

The period during which settlement may be performed against delivery, for the Futures Contract on a long-term bond; this runs from the fourth Business Day to the last Business Day of the Expiration Month.

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:

This is an Option Contract that allows the Buyer to exercise the put or call option only on the Expiration Date.

Excess Margin(s):

The difference between the initial contribution required of Clients by Clearing Members, and the Margin required of the Clearing Member by the Clearinghouse, which is administered by the Clearing Member in question.

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 Options Contracts to be quoted and traded.

Exercise:

The option buyer's right to exercise the right agreed upon in that contract.

Execution Commissioner:

Party designated by the Technical Committee to assume the administration of a Clearing Member when any of the grounds for intervention described in the Regulation are present.

Expiration Date:

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

Expiration Date:

The Business Day up to or upon which the option contract buyer may exercise the right agreed upon in that contract.

Extraordinary Settlement:

A sum of money demanded by the Clearinghouse under special circumstances described in the Regulations.

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.

Future 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.

If the Future Contract specifies payment by diferences, the Underlying Asset shall not be physically delivered.

Future Price:

The price per unit of the Underlying Asset specified in the Futures Contract at the time it is created; it may be expressed in monetary units or calculated in the form of rates of yield, indices, or any other unit.

Futures Spread:

For the purposes of contributing Margins, the position made up of a number of Futures Contracts in the Long Position and an equal number of Futures Contracts in the Short Position of another Series, when both Series are of the same Class of Futures Contracts.

General Contract Conditions:

The standardized characteristics of each Futures or Options Contract.

General Securities Account:

Securities account maintained by a securities depository in the name of the Clearinghouse, in which deposits and withdrawals of Margin securities are made.

General Trading Account:

Demand deposit account maintained by a bank in the name of the Clearinghouse, in which deposits and withdrawals of cash are made pertaining to net daily balances and Settlement Balances at Expiration.

Global Account(s):

An account managed by a Trader or Clearing Member, in which transactions for one or more Clients are recorded, according to individual and anonymous instructions.

Group Account:

Record maintained by the Clearinghouse within the clearing and settlement system, regarding Transactions by the other entities of the financial group to which the trustor and/or trustee bank or brokerage firm of a Proprietary Position Clearing Member, on the basis of which clearing and settlement is carried out.

Individual Position:

For the purposes of making Margins, the Long or Short Position in contacts belonging to a single series that are not part of an Spread Position.

Initial Minimum Contribution (Margin):

The contribution that each Clearing Member must deliver to the Clearinghouse.

Initial Minimum Contribution (Margin) for Exercise/Assignment:

This is the contribution required by the Clearinghouse from a Clearing Member, to cover at least, the settlement value of the exercised/assigned positions using the algorithm determined by the Clearinghouse.

Initial Mimimun Contribution (Margin) for Premiums:

This is the contribution required by the Clearinghouse from the Clearing Member. The amount will be the result of multiplied the premium by the number of underlying assets by number of Option Contracts that make up the Short positions in one series of an Option Contract, or the result of multiplied the difference between the Exercise Price and the Market Price by number of underlying assets by the number of Option Contracts of a Short position assigned.

Initial Mimimun Contribution (Margin) for Risk:

This is the contribution required by the Clearinghouse from a Clearing Member, resulting from applying a reduction in the Initial Minimum Contribution by each contract. The reduction will be determined according the expected potential changes in the underlying assets in portfolios with options short and long positions, or according the potential variations on the underlying assets prices or correlations in the underlying assets in the casos of Futures and Options in a same Class Group of a client.

Initial Mimimun Contribution (Margin) for Spread Positions:

This is the contribution required by the Clearinghouse from the Clearing Member that results of applying a reduction in the Initial Margin Contribution for each contract, determined on the basis of the correlation between the price changes of the Contract Series in a same class, and based on the correlation in the price variation in the respective underlying in the case of contracts of a same Class Group.,

Intragroup Position:

Repealed:

Intrinsic Value:

In a call option, this is any positive difference between the Daily Settlement Price or Price for Settlement at Expiration, and the Strike Price. When this difference is negative, the call option shall have no Intrinsic Value.

In the case of a put option, this is any positive difference between Strike Price and the Daily ¨Settlement Price or Price for Settlement at Expiration. When this difference is negative, the put option shall have no Intrinsic Value.

Long Position:

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

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 Maker Account:

Record maintained by the Clearinghouse within the clearing and settlement system regarding Transactions by each Trader acting as Market Maker, under the terms of the Exchange's regulations, on the basis of which clearing and settlement is carried out.

Member(s):

Repealed.

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.

Minimum Capital:

The capital that Traders that are authorized to manage Global Accounts must maintain; this amount may under no circumstances be less than the amount established in the Rules.

Minimum Equity:

The fund that Trustors must maintain with the Trust, whose purpose is to establish the Clearinghouse; the minimum amount of which is stipulated by the Authorities.

Notification of Exercise:

The process by which the clearing member notifies the Clearinghouse of its intention to exercise the right agreed upon in an Options Contract.

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.

Opening Trade:

For record-keeping purposes, a Transaction by which an Open Position is created or the number of a Client's Open Contracts in a given series is increased.

Operating Manual:

The Manual of Policies and Procedures, which establishes the procedures and specifications that the Clearinghouse, Clearing Members and Traders that manage Global Accounts must follow in carrying out their activities.

Operating Manual:

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

Options 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, on or before the Expiration 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.

If the Options Contract specifies payment by differences, the Underlying Asset shall not be physically delivered.

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.

Portfolio:

Group of instruments contained at the account or sub-account level so that Margins may be calculated and risks evaluated in accordance with the criteria defined for each Class Group and Product Group.

Position Limit (s):

The maximum number of Open contracts a Client can maintain in the same Class or Series.

Premium:

Reference value agreed upon as consideration for the creation of an Options Contract. It may be expressed in monetary units or calculated in the form of rates of yield, 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.

Product Group:

A group of contracts approved by the authorities and consisting of two or more Classes, which allows Clearing Members to reduce Margins, by virtue of the correlation between them.

Projected Worst-Case Scenario:

The scenario that yields the greatest potential loss on a given position or portfolio, according to the maximum expected change incorporated into the algorithms used by the Clearinghouse to calculate Margins.

Proprietary Account:

Record maintained by the Clearinghouse regarding Transactions by the multiple-service bank and/or brokerage firm that are the trustors of a Proprietary Position Clearing Member, on the basis of which clearing and settlement is carried out, including transactions performed according to the Liquidity Terms and Conditions established by the Exchange.

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.

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.

Reconciliation Sub-Account:

Record of Transactions kept by the Clearinghouse for Transactions stemming from trading errors.

Regulations:

The Internal Regulations of the Clearinghouse.

Regulations:

Refers to the document entitled " Regulations 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.

Seller(s):

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

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

Series:

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

For Options Contracts, all Contracts belonging to a single Class with the same Strike Price, Style, Expiration Date and settlement procedure.

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 Position in call Options and a Short Position in put Options to be settled in kind, this is the amount that results from multiplying the Strike Price by the number of units of the Underlying Asset referred to in the Options Contract, by the number of Contracts exercised, according to instructions or assignment.

For a Short Position in call Options and a Long Position in put Options, to be settled in kind, it is the number of units of the Underlying Asset referred to in the Options Contract, multiplied by the number of Contracts assigned, as the case may be, or exercised as instructed.

For a Long (Short) position in call Options whose payment or settlement is to be determined by spreads, and which expire in the money (i.e., with a positive intrinsic value), this is the amount of cash to be received (delivered) from (to) the Clearinghouse, calculated by subtracting the Strike Price from the Future Price or value of the Underlying Asset, and multiplying this amount by the number of units of the Underlying Asset referred to in the Option Contract, and then 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.

Also, the strike price per unit of the Underlying Asset of the Series of Options Contracts that is expiring and which is settled in kind, on the basis of which the Clearinghouse performs settlement at expiration on the corresponding date.

Also, the value of the Premium per unit of the Underlying Asset of the Series of Options Contracts that is expiring, and which is settled by spreads, which the Exchange communicates to the Clearinghouse for the purpose of performing settlement at expiration on the corresponding date.

Market Price. The price of the Underlying Asset of Stock Option Contracts, according to the following specifications:

1.     In the case of the exercise of the right or determination of the Margin for Risk, this is the Closing Price announced by the market on which the stock is traded, in accordance with the General Contract Conditions.

2.     For determining the Margin for Risk during an Extraordinary Settlement, this is the stock's price in the last recorded trade announced by the stock exchange where the stock is listed, in accordance with the General Contract conditions at the time this settlement is calculated.

Also, the Price of the Underlying Asset of Index Option Contracts, as follows:

1.     In the case of the exercise of a right or determination of the Margin for Risk, this is the closing value of the index announced by the market on which the index is calculated, or that which the Exchange uses for closing purposes.

2.     For determining the Margin for Risk during an Extraordinary Settlement, this is the reported value of the price index on the securities market in question, at the time this settlement is calculated.

Short Position:

In Futures Contracts, the number of Open Contracts in each series with respect to which the Client acts as Seller.

Strike Price:

The price at which the Option Contract Buyer may exercise the right agreed upon in the contract.

Style:

This refers to the type of option contract-American Style or European Style (see above)l.

Sub-Committee on Administration:

The collegiate body in charge of assisting the Technical Committee in its market duties of verifying appropriate execution of the clearing and settlement processes, and proposing the operating and account management criteria to be applied by Clearing Members, Traders that manage Global Accounts, and the Clearinghouse, among others.

Sub-Committee on Admission and Risk Management:

The collegiate body in charge of assisting the Technical Committee in its technical duties of admitting trust creators, approving Clearing Members and Traders for managing Global Accounts, accrediting their personnel, and setting parameters for risk management, investment and hedging.

Sub-Committee for Disciplinary Measures and Arbitration:

The collegiate body responsible for assisting the Technical Committee in its disciplinary and arbitration duties.

Sub-Committee for Compliance and Ethics:

The collegiate body responsible for assisting the Technical committee in its regulatory and ethical duties.

Technical Committee:

The Technical Committee of the Asigna Trust.

Third-Party Position Clearing Member:

A trust whose purpose is to clear and settle Transactions performed for Third parties.

Trader(s):

Banks, brokerage firms, and other individuals and incorporations, whether or not they are members of the Exchange, whose purpose is to act as an agent for one or more Clearing Members and, when applicable, as managers of Global Accounts, in entering into Futures and Option Contracts, and which may have access to the Exchange's electronic trading system for entering into those contracts.

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

Trader Account:

Record maintained by the Clearinghouse regarding Transactions by each Trader that trades proprietary positions, including transactions performed according to the Liquidity Terms and Conditions established by the Exchange.

Trader Client Account:

Record maintained by the Clearinghouse within the clearing and settlement system for all the Clients of a Third-Party Position Member, regarding transactions derived from its capacity as broker for each Trader, with the exception of the latter, on the basis of which clearing and settlement is carried out.

Transaction:

Act by which a Futures or Options Contract is entered into, and by virtue of which a Client and the Clearinghouse must abide by the terms established in the General Contract conditions.

Underlying Asset(s):

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