Regulatory Alerts2024-12-17 | Circular 15/2024Added
Circular 15/2024 — Modifications to Circular 4/2012 (Hedge Investment Funds)
The Bank of Mexico amends the 'Rules for the Execution of Derivative Transactions' (Circular 4/2012) to establish specific regulations for hedge investment funds. The document introduces definitions for 'Prime Broker' and 'Hedge Investment Fund', and modifies authorization requirements for entities and funds to conduct derivative transactions on their own account. It mandates annual compliance communications from hedge funds regarding Annex 7 requirements and allows for forward transactions on Mexican government bonds without prior authorization under specific conditions. Additionally, it permits entities to execute certain derivatives without new authorization if they replicate underlying assets, provided they meet strict structural criteria.
More like this from BANXICO
We email you every new BANXICO publication the day it's published.