Circular 7/2016 — Modifications to Circular 8/2015

Thursday, March 31, 2016 OFFICIAL GAZETTE (Third Section) 1

CIRCULAR 7/2016 addressed to Credit Institutions, Brokerage Houses, Investment Funds, Multiple Purpose Financial Societies that have Patrimonial Links with a Multiple Banking Institution, General Deposit Warehouses, and the Financial Entity, regarding Modifications to Circular 8/2015.

At the margin, a logo stating: Bank of Mexico.

CIRCULAR 7/2016

TO CREDIT INSTITUTIONS, BROKERAGE HOUSES,
INVESTMENT FUNDS, MULTIPLE PURPOSE FINANCIAL
SOCIETIES THAT HAVE PATRIMONIAL LINKS WITH A MULTIPLE BANKING INSTITUTION, GENERAL DEPOSIT WAREHOUSES AND TO THE FINANCIAL ENTITY:

SUBJECT: MODIFICATIONS TO
CIRCULAR 8/2015

The Bank of Mexico, with the objective of continuing to promote the sound development of the financial system, considers it convenient to specify the circumstances of Standardized Derivative Operations that must be subject to the requirements for their execution and settlement provided for in the “Rules for the conduct of derivative operations”, contained in Circular 4/2012.

For this reason, based on articles 28, paragraphs sixth and seventh, of the Political Constitution of the United Mexican States, 24, 26, 27 and 36 of the Bank of Mexico Law, 46, fraction XXV, and 46 Bis 5, fraction II, of the Credit Institutions Law, 176 of the Securities Market Law, 15, second paragraph, of the Investment Funds Law, 22 of the Law for Transparency and Regulation of Financial Services, 11, fraction XII, and 87-D of the General Law of Organizations and Auxiliary Activities of Credit, 9 of the National Financiera Organic Law, 6 of the Federal Mortgage Society Organic Law, 9 of the Organic Law of the National Bank of Savings and Financial Services, 9 of the Organic Law of the National Bank of Foreign Trade, 10 of the Organic Law of the National Bank of Public Works and Services, 8 of the Organic Law of the National Bank of the Army, Air Force and Navy, 7, fraction X, and 19 of the Organic Law of the National Bank for Agricultural, Rural, Forestry and Fisheries Development, 4, first paragraph, 8, fourth and seventh paragraphs, 10, first paragraph, 12, first paragraph, in relation to 19 Bis, fraction V, 14, first paragraph, in relation to 25 Bis, fraction VII, 14 Bis, first paragraph, in relation to 17, fraction I, 14 Bis 1, first paragraph, in relation to articles 25 Bis 1, fraction IV, and 25 Bis 2, fraction II, and 20, fraction XI, of the Internal Regulations of the Bank of Mexico, which grant it the authority to issue provisions through the General Directorate of Financial System Affairs, the General Directorate of Central Banking Operations, the General Directorate of Financial Stability, the General Legal Directorate, and the Directorate of Payment Systems, respectively, as well as Second, fractions I, IV, VI, VIII and X, of the Agreement on the Assignment of Administrative Units of the Bank of Mexico has resolved to modify the Second Transitory Article of Circular 8/2015 (Modifications to Circular 4/2012 (Derivative Operations)), to read as follows:

“CIRCULAR 8/2015

…
TRANSITORY PROVISIONS

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SECOND.- The requirements for the execution and settlement of Standardized Derivative Operations referred to in sections 5.2 and 7.5 of these Rules, will enter into force as follows: i) on April 1, 2016 for Standardized Derivative Operations that are entered into, from that same date, between Entities or between an Entity and domestic Institutional Investors, and ii) on November 16, 2016 for Standardized Derivative Operations that are entered into, from that same date, between an Entity and any Foreign Financial Entity that in its respective jurisdiction provides services of the same type as any of the Entities, as well as between an Entity and any foreign Institutional Investor.

…”

TRANSITORY PROVISIONS

SINGLE.- This Circular will enter into force on the next business day following its publication in the Official Gazette of the Federation.

Mexico City, March 28, 2016.- The General Legal Director, Luis Urrutia Corral.- Signature.- The General Director of Central Banking Operations, Jaime José Cortina Morfín.- Signature.- The General Director of Financial Stability, Pascual Ramón O’Dogherty Madrazo.- Signature.- The General Director of Financial System Affairs, Jesús Alan Elizondo Flores.- Signature.- The Director of Payment Systems, Manuel Miguel Ángel Díaz Díaz.- Signature.

Thursday, March 31, 2016 OFFICIAL GAZETTE (Third Section) 2 For any inquiries regarding the content of this Circular, please contact the Management of Authorizations, Consultations and Legal Control, at the phones (55) 5237-2308, (55) 5237-2317 or (55) 5237-2000 Ext. 3200.