Circular 10/2021 — Rules for Auctions for the Purchase of Bondes D and Sale of Bondes F

Thursday, December 16, 2021 OFFICIAL GAZETTE

CIRCULAR 10/2021 addressed to Credit Institutions, Brokerage Houses, Investment Funds, and Specialized Investment Societies for Retirement Funds, regarding the Rules for the auctions for the purchase of Bondes D and sale of Bondes F.

A logo appears at the margin, stating: Bank of Mexico - "2021: Year of Independence".

CIRCULAR 10/2021

TO CREDIT INSTITUTIONS, BROKERAGE HOUSES, INVESTMENT FUNDS, AND SPECIALIZED INVESTMENT SOCIETIES FOR RETIREMENT FUNDS:

SUBJECT: RULES FOR THE AUCTIONS FOR THE PURCHASE OF BONDES D AND SALE OF BONDES F

The Bank of Mexico, on its own behalf and in its capacity as financial agent of the Federal Government, has resolved to issue the rules to carry out the auctions for the purchase of Development Bonds of the Federal Government known as "Bondes D", which were issued for monetary regulation purposes, and the sale of Development Bonds of the Federal Government known as "Bondes F", by the Federal Government.

The foregoing, based on articles 28, paragraphs sixth and seventh, of the Political Constitution of the United Mexican States, 3, fraction III, 7, fraction I, 8, 10, 12, 14 and 24 of the Bank of Mexico Law, 22 of the Law for Transparency and Ordering of Financial Services, 1, 4, first paragraph, 8, paragraphs fourth and eighth, 10, first paragraph, 12, first paragraph, in relation to 19 Bis, fractions II and V, and 14 Bis, first paragraph, in relation to 17, fraction I, of the Internal Regulations of the Bank of Mexico, which grant it the authority to issue provisions through the General Directorate of Central Bank Operations and the General Legal Directorate, respectively, as well as Second, fractions VI and X, of the Agreement on the Affiliation of the Administrative Units of the Bank of Mexico.

RULES FOR THE AUCTIONS FOR THE PURCHASE AND SALE OF BONDES D AND SALE OF BONDES F

1. For the purposes of these Rules, the terms used herein, in singular or plural, shall have the meanings indicated below, without prejudice to the different treatment given to these terms or similar ones in other regulations:

Bank: the Bank of Mexico;

BONDES D: the Development Bonds issued by the Federal Government of the United Mexican States in the national market, denominated in national currency at a variable interest rate known in the market as the "Weighted Average Bank Funding Rate", in terms of the publication of July 31, 2000 in the Official Gazette of the Federation;

BONDES F: the Development Bonds issued by the Federal Government of the United Mexican States in the national market, denominated in national currency at a variable interest rate corresponding to the "Interbank Equilibrium Funding Rate for a One Business Day Term" (TIIE de Fondeo), in terms of what is established in the "Applicable Provisions to the Operations of Credit Institutions, Multiple-Object Financial Societies Regulated that Maintain Patrimonial Links with Credit Institutions and the National Financial Development Institution for Agriculture, Rural, Forestry and Fisheries", issued by the Bank of Mexico through Circular 3/2012, published in the Official Gazette of the Federation on March 2, 2012, as modified by subsequent resolutions;

DALÍ: the System for the Deposit, Administration and Settlement of Securities administered by INDEVAL;

Business Days: the days on which financial entities subject to the regulation of the National Banking and Securities Commission are not obliged to close their doors or suspend operations, in terms of the general provisions issued for such effect by said Commission;

INDEVAL: S.D. Indeval Institution for the Deposit of Securities, S.A. de C.V.;

SWAP AUCTIONS SYSTEM (PRIMARIA PERMUTA): the Bank of Mexico's Swap Auctions System that allows the persons determined in these Rules to submit bids for the purchase of BONDES D and sale of BONDES F provided for in these Rules;

Auctions: the auctions for the purchase of BONDES D and sale of BONDES F provided for in these Rules;

UDIS: the unit of account whose value in national currency is published by the Bank of Mexico in the Official Gazette of the Federation, in accordance with articles Third of the "Decree by which the obligations that may be denominated in Investment Units are established and reforms and adds various provisions of the Federal Tax Code and the Income Tax Law", published in the Official Gazette of the Federation on April 1, 1995 and 20 Ter of the Federal Tax Code, and

Government Securities: the BONDES D or BONDES F, jointly or separately.

2. BIDDERS

Only the following persons may submit bids in the Auctions in question:

a) Credit institutions; b) Brokerage houses; c) Investment funds; d) Specialized investment societies for retirement funds, and e) Other financial entities expressly authorized for such effect by the Bank in terms of numeral 10.6 of these Rules.

The persons referred to above must submit all their bids on their own account, except for: i) investment funds, who will submit their bids through the respective fund management societies that provide them with asset administration services, and ii) specialized investment societies for retirement funds, who will submit their bids through the respective retirement fund administrators that administer and operate them.

The Bank may reject or invalidate bids submitted, in the cases indicated in numeral 6.4.2 below.

3. CALLS FOR AUCTIONS

The Bank will make available to the entities referred to in numeral 2 above the calls for the Auctions up to one Business Day before the date of the respective Auction, through the internet website identified with the domain name: www.banxico.org.mx, the PRIMARIA PERMUTA system, or through any other electronic, computing, or telecommunications medium authorized for such effect by the Bank, unless the Bank announces another date or time for a particular call.

In these calls, the necessary characteristics for the conduct of the Auctions will be made known.

4. TYPES OF AUCTIONS

The Auctions may be:

a) Single-price: those in which the BONDES F will be assigned starting from the most convenient bid in terms of price for the issuer, and all bids that result in assignment will be served at the same price as the last bid to receive assignment, even if it was served partially in its amount, or

b) Multiple-price: those in which the BONDES F will be assigned starting from the most convenient bid in terms of price for the issuer and all bids that result in assignment will be served at the requested price.

5. PRICES

The Bank will make known to the bidders the prices it has determined for the purchase of the BONDES D that were placed for monetary regulation purposes, through the aforementioned internet website identified with the domain name: www.banxico.org.mx, or through any other electronic, computing, or telecommunications medium authorized for such effect by the Bank.

The references to prices correspond to clean prices; that is, those that do not include accrued unpaid interest, rounded to ten-thousandths.

6. BIDS

6.1 Types of Bids

For the case of the Auctions referred to in numeral 4 of these Rules, bids may only be competitive and must indicate the issuance key and the total amount at nominal value in quantities expressed in thousands of pesos, rounded to five thousand pesos or its multiples, of the BONDES D that the bidder is willing to sell, as well as the class of issuance and the unit price at which the bidder is willing to buy the BONDES F they intend to acquire, expressed up to five decimal places.

6.2 Bid Limits

The sum of the amounts of the bids for the acquisition of BONDES F presented by each bidder for each call shall not exceed the maximum amount that the Federal Government is willing to offer in the Auction in question, as previously communicated to the Bank.

6.3 Submission of Bids

6.3.1 Bidders must submit their bids through the PRIMARIA PERMUTA system on the date and within the time frame indicated in the respective calls.

Bids must be submitted in the form, terms, and conditions indicated in the respective calls.

In the event that bids cannot be submitted through the PRIMARIA PERMUTA system, bidders may submit them, exceptionally, through any other electronic, computing, or telecommunications medium authorized for such effect by the Bank of Mexico, in which case they must confirm them by written notice addressed to the National Operations Management of the Bank, presented in a closed envelope, no later than 17:00:00 hours on the same Business Day of the Auction, using the model contained in Appendix 1 of these Rules and accompanying it with a cover letter, as applicable, for each of the Government Securities in question.

The documents mentioned in the previous paragraph must be signed by the same representatives duly authorized by the bidder to submit bids through the PRIMARIA PERMUTA system. Additionally, the letter must show the signature knowledge granted by the Bank, so that these signatures must be registered in the Bank itself.

6.3.2 Each bidder may submit one or more bids for the same call. The bids presented in each request must refer exclusively to the same issuance.

6.4 Effects of Bids

6.4.1 Bids submitted to the Bank in terms of numeral 6.3.1 of these Rules will produce the broadest effects corresponding in law and will imply the bidder's acceptance of all and each of the terms and conditions established in these Rules, as well as those other established in the call published by the Bank in accordance with these same Rules.

Every bid will be binding for the bidder who presents it and will be irrevocable.

The access, identification, and, if applicable, operation keys established for the use of the PRIMARIA PERMUTA system or any other electronic, computing, or telecommunications medium used for the purposes of these Rules will substitute the autograph signature with an electronic one, so that documentary or technical records in which they appear will have full legal validity and produce the same effects that laws grant to documents signed by the parties and, consequently, will have equal probative value.

6.4.2 The Bank may invalidate the bids it receives if they do not comply with these Rules or what is stated in the corresponding call; are not clearly legible; have erasures or corrections; are incomplete or, in any way, incorrect.

Likewise, the Bank may reject bids regarding one or more issuances if, in its judgment, the persons presenting them violate other applicable provisions or do not comply with sound uses or practices of the securities market or if their participation in the respective Auctions, due to their characteristics, could produce inconvenient effects for the sound development of the securities market in particular or the financial market in general.

Likewise, the Bank may limit the participation of some or all of the persons mentioned in the first paragraph of numeral 2 of these Rules, when the bids they present do not comply with sound market practices.

7. ASSIGNMENT

Bids will receive assignment according to the descending order of the respective prices.

In single-price Auctions, the price at which the BONDES F will be assigned will be that corresponding to the last bid to receive assignment, even if it is served partially in its amount.

In multiple-price Auctions, bids will be served at the requested prices.

In all cases, bids will be served and receive assignment without exceeding the maximum amount indicated in the call.

In the event that, among the submitted bids, some result in a tie and the amount to be assigned is not sufficient to serve such bids, they will be served pro rata of their amount.

The Federal Government may determine, in any Auction, the minimum price at which it is willing to assign the BONDES F. In these cases, bids with lower prices will not be served.

The Bank may declare any Auction completely void, in which case no bid will receive assignment of Government Securities. Likewise, the Bank may partially assign the Auctions.

The amounts of the BONDES D to be delivered by each bidder whose bid has assignment of BONDES F will be at nominal value, closed to thousands of pesos.

8. RESULTS

The Bank will make available to the bidders, through the Bank of Mexico's internet website previously referred to or through any other electronic, computing, or telecommunications medium authorized for such effect by the Bank, the general results of the Auctions starting from sixty minutes after the applicable deadline for the submission of bids for the Auction in question. The information corresponding to the general results of an Auction will remain available to bidders through the mentioned medium, until the results of a new Auction are incorporated in the terms indicated above.

The Bank will inform each bidder individually, through the PRIMARIA PERMUTA system or through any other electronic, computing, or telecommunications medium authorized for such effect by the Bank of Mexico, starting from sixty minutes after the applicable deadline for the submission of bids for the Auction in question, the quantity of BONDES D that, if applicable, said bidder must deliver, as well as the quantity of BONDES F that, if applicable, will be assigned to them, indicating the amounts in both cases.

9. SETTLEMENT OF AUCTIONS

9.1 The Federal Government, through the Bank of Mexico, acting as its financial agent, by virtue of what is provided by articles 2312 and 2331 of the Federal Civil Code, will reserve ownership of the BONDES F subject to the Auctions that it must deliver, until the moment the Bank receives from the bidder the BONDES D corresponding.

9.2 The settlement of the operations subject to the Auctions referred to in these Rules will be carried out through the DALÍ in the terms established in the internal regulations of INDEVAL, on the date fixed in the corresponding call. On the settlement day, the Bank will instruct INDEVAL to: a) make the corresponding charge in the securities account of the credit institution or brokerage house in question, for the total of BONDES D that must be delivered to the Bank, in terms of what is provided in the following paragraph, and b) credit the amount of the purchase of said BONDES D to the account that the Bank itself holds for the bidder who has received assignment, subject to the BONDES D from the bidder having been received in the Bank's securities account in INDEVAL. Subsequently, the Bank will charge the referred account that it holds for the bidder the amount of the BONDES F corresponding to them and will instruct INDEVAL to credit in the cited account the total of BONDES F that the bidder must receive.

In the event that the total value of the BONDES D to be delivered by the bidder is greater or less than the total value of the BONDES F to be received, the difference in favor or to the charge of any of the bidders mentioned in subsections a) and b) of numeral 2 above, as applicable, must be paid on the settlement day by credit or charge in the account that the Bank holds for the bidder in question.

9.3 The persons referred to in subsections c), d) and e) of numeral 2 above must deliver the BONDES D and receive the corresponding BONDES F, through the credit institution or brokerage house with which they agree to carry out such operation.

For the purposes of what is provided in numerals 9.2 and 9.3 above, all of the BONDES D that bidders who have received assignment are obliged to deliver must be deposited in the corresponding securities accounts, before the closing of operations of the DALÍ on the settlement day of the corresponding Auction.

In order for the Bank to be able to carry out the settlement of the assigned bids in the respective Auctions, the persons indicated in subsections a) and b) of numeral 2 above must send a communication in terms of Appendix 2, and the persons referred to in subsections c), d) and e) of said numeral 2 must send a communication in terms of Appendix 3 of these Rules.

Both communications must be sent to the Operations Management Department of the Bank of Mexico and be signed by person(s) with faculties to exercise acts of domain, as well as present a certified and simple copy of the deed in which the aforementioned faculties are recorded and a simple copy of their official identification(s).

9.4 In the event that a bidder does not have the total amount of the BONDES D that must be delivered in the account designated in accordance with what is stated in the previous numeral, the Bank may, without the need for a judicial declaration, rescind the purchase of BONDES D for the missing amount and the sale of BONDES F for the respective amount, so that the corresponding credits and charges will not be made in the securities accounts in the DALÍ, as well as in the respective account that the Bank itself holds for the bidder.

In the case referred to in the previous paragraph, bidders must cover to the Bank the equivalent to the maximum amount resulting between the equivalent to one percent of the nominal amount of the BONDES D that were not delivered to the Bank in due time and 200,000 UDIS applying the value in national currency of said unit of account corresponding to the date on which the breach in question occurs.

The amount referred to in the previous paragraph will be charged in the national currency account that the Bank holds for the defaulting bidder or in the account that it holds for the institution or brokerage house that the respective bidder has authorized in terms of the authorization model that they present to the Bank in accordance with the format included in Appendices 2 and 3 of these Rules, as applicable.

Without prejudice to the foregoing, the Bank may disqualify the bidder who has incurred in the situation previously contemplated in this numeral 9.4, from participating in the Auctions.

9.5 The settlement of the operations of the Auctions with BONDES D and BONDES F issued prior to the settlement date of the corresponding Auctions must be carried out by adding to the respective unit price, the accrued unpaid interest, from the date of their issuance or last interest payment, as applicable, until the settlement date, according to the following formula:

(1)

Where:

I dev = Accrued interest in national currency.

VN = Nominal value of the Government Security in national currency.

N = Natural days elapsed between the date of issuance or last interest payment, as applicable, and the settlement date.

R = Annual interest rate accrued on the title, expressed in annual percentage terms and rounded to two decimal places, calculated according to the following formula:

DIARIO OFICIAL Thursday, December 16, 2021
(2)
Where:
i = Each of the natural days between the issuance date of the Government Bond or the last interest payment, and the settlement date, which will take values from 1 to N.
= Operator meaning to perform the multiplication of the factors within parentheses.
For "BONDES D":
ri = the annual interest rate, expressed in percentage terms rounded to two decimal places, at which credit institutions and brokerage houses carry out purchase, sale, and repurchase operations for one Banking Business Day with bank securities, known in the market as the "Weighted Interbank Funding Rate," calculated and made known on day i by the Bank, in terms of the publication in the Official Gazette of the Federation of July 31, 2000, through its internet website www.banxico.org.mx or through any other electronic, computing, or telecommunications medium authorized for this purpose by the Bank itself. In the latter case, the Bank will timely inform the medium through which such rate will be disseminated. In the case of those days that are not Banking Business Days, the rate that was made known on the immediately preceding Banking Business Day that corresponds shall be used. In the event that the rate referred to in element ri cannot be determined or ceases to be made known, the Bank will request in writing from two societies that administer systems to facilitate operations with securities (brokerage houses) selected at the proposal of the Association of Banks of Mexico, A.C., the average of the purchase, sale, and repurchase operations for one Banking Business Day with bank securities. The Bank will calculate the average of the two interest rates thus obtained for its determination and will make known the result in the manner and means mentioned, as a substitute interest rate for that referred to in the definition of the previous element ri. For "BONDES F":
ri = The annual interest rate, expressed in percentage terms rounded to two decimal places, based on wholesale peso funding operations carried out by banks and brokerage houses through repurchase operations for one Banking Business Day with securities issued by the Federal Government, the Bank Protection Institute (IPAB), and the Bank of Mexico, known in the market as the "Interbank Equilibrium Funding Rate for One Day," calculated and made known on day i by the Bank through its website www.banxico.org.mx, in terms of what is established in the "Applicable Provisions for the Operations of Credit Institutions, Multiple-Objective Financial Companies Regulated that Maintain Patrimonial Links with Credit Institutions and the National Financial Development Company for Agriculture, Rural, Forestry and Fisheries," issued by the Bank through Circular 3/2012, published in the Official Gazette of the Federation of March 2, 2012, as they have been modified by subsequent resolutions, or through any other electronic computing or telecommunications medium authorized for this purpose by the Bank itself. In the latter case, the medium through which such rate will be disseminated will be timely informed. In the case of those days that are not Banking Business Days, for the calculation of the interest rate, the rate that was made known on the immediately preceding Banking Business Day that corresponds shall be used. For each bid assigned within the i-th call, bidders will deliver the quantity of BONDES D of series j corresponding, Ni,j BONDES D and will receive from the Federal Government Ni,k BONDES F of the requested series k of BONDES F. For the purposes of what is stated in this paragraph, it will correspond to the result of applying the following formula:
(3)
Where:

Thursday, December 16, 2021 DIARIO OFICIAL
= Price assigned for BONDE F in the i-th call of series k (the price of BONDES F must be rounded to ten-thousandths).
= Price for BONDE D of series j in the i-th call.
= Quantity of accrued but unpaid interest of BONDE D of series j calculated according to formula (1).
= Quantity of BONDES D to be delivered by bidders, as applicable, for each bid assigned in the i-th call of series j.
= Quantity of BONDES F of series k to be received by bidders for each bid assigned in the i-th call. It will be truncated to the nearest lower integer.
10. GENERAL PROVISIONS
10.1 For market information, the Bank will make known to the general public the characteristics of the Auctions, through the internet website identified with the domain name: www.banxico.org.mx or through any other electronic, computing, or telecommunications medium authorized for this purpose by the Bank.
10.2 The schedules mentioned in these Rules will refer to the time zone of Mexico City.
10.3 In the event that, due to force majeure or fortuitous event, the Bank's internet website or the PRIMARIA PERMUTA system cannot be used to make known the calls, carry out the Auctions, or inform the results thereof, the Bank will timely communicate the applicable procedure to make known such calls or the results of the corresponding Auctions.
10.4 Credit institutions and brokerage houses must authorize the Bank to instruct INDEVAL to debit or credit, as applicable, in the title deposit account in administration that INDEVAL itself maintains for them, for the amount of Government Securities corresponding. Likewise, they must authorize the Bank to debit or credit the cash settlement in the national currency account that the Bank maintains for them.
For this purpose, credit institutions and brokerage houses must grant an authorization in favor of the Bank, prepared in terms of the format included in Appendix 2, a copy of which must be delivered to INDEVAL.
The persons referred to in letters b), c), and d) of the first paragraph of section 2 of these Rules must deliver and receive the corresponding Government Securities through the credit institution or brokerage house with whom they agree to carry out the operations referred to in these Rules, who must grant a model of authorization to the Bank, prepared in terms of the model contained in Appendix 3. The authorization and the model of authorization that credit institutions or brokerage houses must deliver to the Bank must be signed by whoever has the authority to exercise acts of domain on behalf and in the name of the credit institution or brokerage house in question, and must be accompanied by certified and simple copies of the public instrument in which the aforementioned powers are recorded, as well as a simple copy of the official identification of said attorney(s). The documentation that must be sent to the Bank in accordance with the provisions of this section must be delivered to the Operations Management Department at least three Banking Business Days in advance of the date on which they intend to begin participating in the Auctions.
10.5 The Bank may modify the dates, schedules, and deadlines mentioned in these Rules in the event that circumstances occur that prevent strict observance of the procedure and other acts related to the Auction in question. In such an event, the Bank will inform of the modifications through its aforementioned internet website or through any other electronic, computing, or telecommunications medium authorized for this purpose by the Bank.
10.6 The Bank may authorize other financial entities other than those indicated in letters a) to d) of section 2 of these Rules to submit bids in the Auctions in accordance with these same Rules. For these purposes, entities interested in participating as bidders must submit their request to the Bank, through the Central Banking Authorizations and Inquiries Management of the Bank of Mexico. The Bank may, at any time, limit or revoke, as applicable, the authorization it grants in accordance with this section.
APPENDIX 1
MODEL OF REQUEST TO PARTICIPATE IN THE AUCTIONS FOR THE PURCHASE OF BONDES D AND SALE OF BONDES F BANK OF MEXICO NATIONAL OPERATIONS MANAGEMENT 5 de Mayo Avenue number 6 Centro Neighborhood, C.P. 06000, Mexico City Present.
REQUEST FOR OWN ACCOUNT
Mexico City, on ____ of ____________ of .
Bidder Name: _____________________________
Bidder Key at the Bank of Mexico: _____________________________ BIDS:
BONDE D Key to sell:
Amount of BONDES D in multiples of five thousand pesos:
BONDE F Key to buy:
Price of BONDE F:
_________ ._____, ____________ ____________________ _________ ._____, _________ ._____, ____________ ____________________ _________ ._____, _________ ._____, ____________ ____________________ _________ ._______, The AMOUNTS must be expressed in thousands of pesos.
The PRICES must be expressed up to FIVE decimal places.
The PRICES are without accrued interest.
The cited bids are mandatory and irrevocable; they will produce the broadest effects that correspond in law, and imply our acceptance to all and each of the "Rules for the auctions for the purchase of BONDES D and sale of BONDES F" in force, as well as to the terms and conditions of the call dated ____ of _____________ of __.
Sincerely, 1

Thursday, December 16, 2021 DIARIO OFICIAL
(Bidder's Designation)
(Name, position, and signature of authorized officials) NOTE: Unused spaces must be cancelled.
1 This document must show the signature knowledge granted by the Bank of Mexico, so said signatures must be registered at the Bank of Mexico itself.
APPENDIX 2
MODEL OF AUTHORIZATION IN FAVOR OF THE BANK OF MEXICO TO EFFECT DEBITS AND CREDITS IN THE ACCOUNTS OF CREDIT INSTITUTIONS OR BROKERAGE HOUSES THAT SUBMIT BIDS (LETTERHEAD OF THE CREDIT INSTITUTION OR BROKERAGE HOUSE) Mexico City, on ____ of ____________ of __.
BANK OF MEXICO
OPERATIONS MANAGEMENT DEPARTMENT
5 de Mayo Avenue number 6,
Centro Neighborhood, C.P. 06000, Mexico City
Present.
(DESIGNATION OF THE CREDIT INSTITUTION OR BROKERAGE HOUSE) hereby authorizes and instructs irrevocably the Bank of Mexico to effect the necessary debits and credits in the securities account that the S.D. INDEVAL Securities Depository Institution, S.A. de C.V., maintains for us, derived from the settlement of the purchase operations of BONDES D and sale of BONDES F celebrated by this society under the "Rules for the auctions for the purchase of BONDES D and sale of BONDES F". For such purposes, that Central Bank will send to said securities depository institution the corresponding instructions so that the respective records are made. Additionally, it is authorized and instructed irrevocably the Bank of Mexico to effect debits and credits in the national currency account that the Bank of Mexico itself maintains for us, up to the amounts of cash differences resulting in favor or against this society derived from the operations mentioned in the previous paragraph, as well as for any other amount that this society must cover by virtue of what is established in the aforementioned Rules. Finally, we make known to you that the authorizations and instructions referred to in this document can only be modified or revoked through written communication addressed to that Central Bank and presented with, at least, one banking business day in advance of the date on which the respective modification or revocation is intended to take effect. It being understood that the modification or revocation will not be applicable with respect to the debits and credits resulting from the bids submitted by this society prior to such communication taking effect. Sincerely,

DIARIO OFICIAL Thursday, December 16, 2021
(DESIGNATION OF THE CREDIT INSTITUTION OR BROKERAGE HOUSE) (Name, position, and signature of person(s) with authority to exercise acts of domain) C.c.p.: S.D. INDEVAL Securities Depository Institution, S.A. de C.V.
For your information.
APPENDIX 3
MODEL OF AUTHORIZATION IN FAVOR OF THE BANK OF MEXICO TO EFFECT DEBITS AND CREDITS IN THE ACCOUNTS OF A CREDIT INSTITUTION OR BROKERAGE HOUSE ON BEHALF OF ANOTHER BIDDER (LETTERHEAD OF THE CREDIT INSTITUTION OR BROKERAGE HOUSE) Mexico City, on ____ of ____________ of __.
BANK OF MEXICO
OPERATIONS MANAGEMENT DEPARTMENT
5 de Mayo Avenue number 6,
Centro Neighborhood, C.P. 06000, Mexico City
Present.
(DESIGNATION OF THE CREDIT INSTITUTION OR BROKERAGE HOUSE) hereby authorizes and instructs irrevocably the Bank of Mexico to effect the necessary debits and credits in the securities account that the S.D. INDEVAL Securities Depository Institution, S.A. de C.V., maintains for us, derived from the settlement of the purchase operations of BONDES D and sale of BONDES F celebrated by (DESIGNATION OF BIDDER) under the "Rules for the auctions for the purchase of BONDES D and sale of BONDES F", which must be delivered and received by (DESIGNATION OF BIDDER). For such purposes, that Central Bank will send to said securities depository institution the corresponding instructions so that the respective records are made. Additionally, it is authorized and instructed irrevocably that Central Bank to effect debits and credits in the national currency account that the Bank of Mexico itself maintains for us, up to the amounts of cash differences resulting in favor or against (DESIGNATION OF BIDDER) derived from the operations mentioned in the previous paragraph, as well as for any other amount that (DESIGNATION OF BIDDER) must cover by virtue of any non-compliance with what is established in the aforementioned Rules. Finally, we make known to you that the authorizations and instructions referred to in this document can only be modified or revoked through written communication addressed to that Central Bank and presented with, at least, one banking business day in advance of the date on which the respective modification or revocation is intended to take effect. It being understood that the modification or revocation will not be applicable with respect to the debits and credits resulting from the bids submitted by (DESIGNATION OF BIDDER) prior to such communication taking effect. Sincerely, (DESIGNATION OF THE CREDIT INSTITUTION OR BROKERAGE HOUSE) (Name, position, and signature of person(s) with authority to exercise acts of domain) C.c.p.: S.D. INDEVAL Securities Depository Institution, S.A. de C.V. For your information.

Thursday, December 16, 2021 DIARIO OFICIAL
(DESIGNATION OF BIDDER).
For your information.
TRANSITORY
SINGLE.- This Circular will enter into force on the day of its publication in the Official Gazette of the Federation and its validity will expire on December 31, 2022.
Mexico City, on December 10, 2021.- BANK OF MEXICO: Director General of Central Banking Operations, Gerardo Israel García López.- Rubric.- Director General Legal, Luis Urrutia Corral.- Rubric.
For any queries regarding the content of this Circular, the Bank of Mexico is at your disposal through the Central Banking Authorizations and Sanctions Directorate at telephone (55) 5237-2000 extension 3200.