Regulatory Alerts2021-12-27 | Circular 11/2021Added · Updated
Circular 11/2021 — Modifications to the Procedure for Acting as Market Makers for Government Securities
This circular modifies the procedure for credit institutions and brokerage houses acting as market makers for government securities, specifically by adding a definition for syndicated auctions and updating eligibility and operational rules. It establishes a 5% threshold for the Market Maker Index (IFM) to join or remain in the market maker program and sets a 35% cap on the total amount of CETES and BONOS/UDIBONOS that market makers can acquire collectively or individually through purchase options. Additionally, it adjusts borrowing limits, introduces suspension mechanisms for market makers exceeding a 35% long net position, and defines a prorated allocation procedure for purchase options when demand exceeds the 35% limit.
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