The Mexican Peso was the first currency to have a design to protect it from counterfeits, making it popular in the early 1700s. In fact, it was so popular that it became the official currency system for all of North America and even the United States in 1785. Today, the Mexican Peso lands at the 12th most-traded currency in the world, third in the Americas, and first in Latin America in world currency ratings.
| Mexican Peso Contract Specifications | |
| Contract Size | 500,000 Mexican pesos |
| Trading Hours | CME Globex: Sundays: 5:00pm – 4:00pm CT next day. Monday – Friday: 5:00pm – 4:00pm CT the next day, except on Friday – closes at 4:00pm and reopens Sunday at 5:00pm CT. |
| CME ClearPort: Sunday – Friday 5:00pm – 4:15pm CT with a 45–minute break each day beginning at 4:15pm | |
| Minimum Price Fluctuation | $.00001 per Mexican peso increments ($5.00/contract). |
| Product Code | CME Globex: 6M |
| CME ClearPort: MP | |
| Clearing: MP | |
| Listed Contracts | Thirteen consecutive calendar months plus 2 deferred March quarterly cycle contract months |
| Settlement Method | Deliverable |
| Last Trade Date | 9:16 a.m. Central Time (CT) on the second business day immediately preceding the third Wednesday of the contract month (usually Monday). |
| Settlement Procedures | Physical Delivery – Mexican Peso Futures Settlement Procedures |
| Position Accountability | 6,000 contracts |
| Block Trade Eligibility | Yes. |
| Block Minimum | 100 Contracts |
| Exchange Rules | These contracts are listed with, and subject to, the rules and regulations of CME. |
| Source: CME Group | |
Mexican Peso Facts
Mexican Peso futures allow traders to assess value against the U.S. dollar, as well as the opportunity to address risk from currency fluctuations in other foreign trade markets.
Currency rates are determined by a one base currency quoted in relation to a different currency. Major currencies that are traded are floating. Central bank monetary policies can affect the value of currency. The Banco de México regulates monetary policy for its currency. For instance, low interest rates dictated as policy can be bearish for currency value because new money is being pumped into the market. This is unappealing to foreign investors because returns yield those low interest rates. In contrast, high interest rates set as policy are bullish and appealing to foreign investors because of high interest yields from the returns. Currency values can be also be affected by the nation’s current account balance. An excess or influx in the balance is considered to be bullish, while a deficit or drainage is considered to be bearish. Economic stability and investment in the country also help strengthen currency values because international investors are likely to buy into that country’s favorable markets.
Source: Barchart
Last updated September 2015
Additional Info
Recent Posts on the Mexican Peso
- Peso dips after Banco de Mexico releases weaker-than-forecast retail sales data (10/21/2013) - The Mexican peso dropped to its lowest value in about a week on Monday against the world's reserve currency after retail sales data for August was lower than forecast.
- Mexican peso spurred higher by central bank rate cut (3/8/2013) - The Mexican peso advanced on Friday against the U.S. dollar after the central bank opted to slash interest rates for the first time in almost four years, Reuters reports. By reducing borrowing costs from 4.5 percent to 4 percent, the Bank of Mexico is aiming to induce growth and development in Latin America's second-largest economy. Brazil,… Read more.
- Peso notches third consecutive day of gains (12/6/2012) - Thursday saw the Mexican peso advance against the world's reserve currency for a third-straight day amid uplifting political activity in both Mexico and the U.S., Bloomberg reports. Optimism is strong for the new policies of President Enrique Pena Nieto, who signed on with a pact to develop national growth with three of the country's top… Read more.