Circular 114/2002 — Electronic Submission of Provisions to Brokerage Houses

CIRCULAR 114/2002
Mexico, D.F., October 30, 2002.
TO BROKERAGE HOUSES:
SUBJECT: PROVISIONS ISSUED BY THE BANK OF MEXICO DIRECTED AT BROKERAGE HOUSES

The Bank of Mexico, pursuant to Articles 24, 26, 28, 32, 33, and 36 of its Law, as well as Article 22, fraction IV, and Article 97 of the Securities Market Law, with the objective of: i) compiling in a single regulatory framework the provisions it has issued to regulate the operations conducted by these brokerage houses, in order to facilitate their consultation, application, and compliance, as well as ii) establishing a direct communication link with said brokerage houses to make the dissemination of provisions issued to these intermediaries more efficient and expeditious, has resolved:

I. To issue Circular 115/2002, which will enter into force on November 11 of the current year, which contains the current regulation issued by this Central Bank directed at brokerage houses. The aforementioned Circular 115/2002 will be available to brokerage houses in printed form at the Administrative Services Office of this Central Institute, located at 5 de Mayo Avenue, number 1 (Guardiola Annex), 3rd floor, Centro Neighborhood, Mexico D.F., 06059, from November 4 to November 8 of this year, through the delivery made by means of the communication prepared in accordance with the receipt model attached to this document as Annex 1, duly signed by officials with powers for administrative acts.

Likewise, this Circular will be incorporated into the electronic page of this Bank of Mexico on the worldwide network (Internet) identified by the domain name: http://www.banxico.org.mx, under the heading "Provisions," starting from its entry into force.

In order for Internet users to follow up on modifications made to the aforementioned Circular, the Bank of Mexico will present a historical file in which previous texts can be consulted, along with the reasons that gave rise to the modification in question. Likewise, the Circulars that have reformed each section will be indicated.

II. Starting from November 11, 2002, the provisions issued by the Bank of Mexico related to Circular 115/2002 will be made known to these brokerage houses directly through fax and email to the numbers and electronic addresses provided for this purpose by the brokerage houses themselves, being these the official means of information for the provisions issued in this matter by the Central Bank.

To ensure the integrity of the provisions transmitted through email and to simultaneously verify the identity of the signatories, these provisions will be signed by competent officials through electronic signatures that will be generated based on a system designed and administered by the Bank of Mexico, called "Extended Security Infrastructure" (IES).

The document describing the characteristics and functions of the components of the IES, as well as the manuals for its use and the directory for handling inquiries, are located on the page that the Bank of Mexico has on the Internet indicated in section I of this Circular, under the heading "Extended Security Infrastructure" of the "Other Services" section.

To be able to access the provisions sent to them by email, as well as to verify their authenticity, it will be necessary for these brokerage houses to install on the computer equipment they will use for this purpose the computer program called "WebSec," which is also found on the mentioned page.

For the purpose of receiving the provisions through the means indicated, brokerage houses must send to the Bank of Mexico a communication prepared based on the format attached as Annex 2, signed by officials who have powers for administrative acts, no later than November 8, 2002, to the Operational Processing Directorate, located at 5 de Mayo Avenue No. 2, Centro Neighborhood, in this City.

Finally, in order to verify the authority of the officials who will sign the communications contained in Annexes 1 and 2 of this Circular, brokerage houses must attach to them a certified copy of the deed in which the powers for administrative acts in favor of the officials signing them are recorded. The foregoing, understanding that if the same officials sign both communications, it will be sufficient that they attach the aforementioned certified copy to the first of said communications they send to this Central Bank.

ANNEX 1
MODEL OF RECEIPT OF CIRCULAR 115/2002 DIRECTED AT BROKERAGE HOUSES.
Mexico, D.F., ____ of November 2002.
BANK OF MEXICO
Administrative Services Office,
Av. 5 de Mayo number 1 (Guardiola
Annex),
3rd floor,
Centro Neighborhood,
06059 Mexico, D.F.

In relation to Circular 114/2002 of October 30, 2002, (name of the brokerage house) states that it is aware that the Bank of Mexico made its Circular 115/2002 available to brokerage houses. Likewise, (name of the brokerage house) declares that it received a copy of the aforementioned Circular including its Annexes, accepting that such provision has full legal validity and will produce all legal effects to which there may be grounds.

Sincerely,
(Name of the Brokerage House)
(Names of authorized officials)
(Titles)

ANNEX 2
MODEL OF COMMUNICATION THAT MUST BE SENT BY BROKERAGE HOUSES IN ACCORDANCE WITH CIRCULAR 114/2002, TO RECEIVE THE PROVISIONS ISSUED BY THE BANK OF MEXICO THROUGH ELECTRONIC MEANS.
Mexico, D.F., __ of November 2002.
BANK OF MEXICO
Operational Processing Directorate,
Av. 5 de Mayo number 2, 3rd Floor,
Centro Neighborhood,
06059 Mexico, D.F.

In relation to Circular 114/2002 of October 30, 2002, (name of the brokerage house) states that it is aware that the Bank of Mexico, starting from November 11, 2002, will directly disseminate the provisions it issues for brokerage houses, through electronic means (fax and email), therefore it expresses its consent to receive them through the aforementioned means. Likewise, it accepts that the provisions issued by the Bank of Mexico that are made known through the mentioned means will have full legal validity and will produce all legal effects to which there may be grounds.

For the above, it is communicated that the aforementioned provisions must be sent to any of the following electronic addresses and fax numbers:

RESPONSIBLE ELECTRONIC ADDRESS

1. ---

2. ---

3. ---

RESPONSIBLE FAX NUMBER

1. ---

2. ---

3. ---

This Brokerage House undertakes to notify that Directorate in writing immediately of any change in the present list, in order for it to take effect from the second subsequent banking business day after it is made known to that Central Institute.

Likewise, this Brokerage House commits to installing on its equipment no later than November 8, 2002, the computer program called "WebSec," necessary to access the provisions that that Central Bank disseminates through email and to verify the authenticity of the electronic signatures contained in said provisions, as well as to keep it in operation and updated.

Sincerely,
(Name of the Brokerage House)
(Names of authorized officials)
(Titles)