Regulatory Alerts2012-10-02 | Circular 14/2012Added
Circular 14/2012 — Simultaneous Purchase and Sale Auctions of IPAB Securities
Circular 14/2012 establishes the rules for simultaneous purchase and sale auctions of IPAB securities (BPAs, BPAT, BPAG28, and BPAG91) conducted by the Bank of Mexico as the IPAB's financial agent. It defines eligible bidders as credit institutions, brokerage houses, investment companies, and retirement fund investment societies, specifying that bids must be competitive and submitted via the SIAC-BANXICO system. The circular details auction procedures, including single and multiple price formats, assignment methods, and settlement calculations involving accrued interest. It mandates that bidders deliver securities and receive compensation through value deposit institutions, imposing a one percent penalty on the nominal amount of undelivered securities in cases of default.
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