Regulatory Alerts2026-01-06 | Circular 1/2026Added
Circular 1/2026 — Modifies Circular 4/2012
The Bank of Mexico amends the Rules for the Execution of Derivative Operations to mandate that Entities, Investment Funds, Sofomes, General Warehouse Deposits, and Insurance Institutions hold and verify valid Legal Entity Identifier (LEI) codes for themselves and their counterparties. The regulation introduces a phased implementation schedule for LEI collection based on notional amount thresholds, requiring LEIs for counterparties with aggregated notional amounts exceeding 3 million UDIS by July 2027, with an interim requirement for those exceeding 17 million UDIS starting in October 2026. Additionally, the circular updates margin requirements for uncollateralized over-the-counter derivatives by exempting federal public administration (excluding state-owned enterprises and development banks) from margin exchange obligations and removing a previously derogated clause.
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