UBS is preparing to trade Mexican peso-denominated derivatives, including interest rate and credit products by the end of the month as part of its expansion into emerging markets. "It's taken some time but we're all set now," said Joonkee Hong, global head of emerging market derivatives in New York.
UBS will offer peso-denominated structured notes, interest rate and cross-currency swaps as well as credit derivatives. The Swiss bank has eyed the Mexican market since last year (DW, 12/15) but Hong noted that it has taken several months to establish systems that deal with the unique aspects of the Mexican market, such as its 28 day interest rate cycle. "We have great expectations for Mexico," said Hong, noting that the firm has a dedicated trader and marketer for the effort, based in Stamford, Conn.
The bank established a specialized emerging markets group last year, spearheaded by Hong, who moved from the Hong Kong office (DW 2/3/02). UBS has already expanded into Eastern Europe, including Czech Republic, Hungary and Poland, and Hong says he plans further expansion, but declined to be specific.
