Regulatory Alerts2007-09-24 | Circular 11/2007Added
Circular 11/2007 — Modifies Circular 2/2005
The Bank of Mexico amends the Rules for the Swap of Fixed-Rate Federal Government Development Bonds to prohibit bidders with a net long position equal to or greater than 60% of the total outstanding amount from participating in swaps. This restriction applies to multiple banking institutions and brokerage houses within the same financial group or under common control, requiring their positions to be aggregated for this threshold calculation. Bidders failing to deliver bonds or violating the participation limit are subject to a conventional penalty of 1% of the nominal value and may be disqualified from future auctions. These modified rules entered into force on September 25, 2007.
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