Regulatory Alerts2024-12-17 | Circular 16/2024Added
Circular 16/2024 — Modifications to Rules for Securities Lending Operations
The Bank of Mexico amends definitions in the rules governing securities lending operations to include Prime Brokers, Foreign Hedge Funds, and Covered Investment Funds, and establishes that Covered Investment Funds are exempt from adjustment factors and collateral requirements under article 8.1. The circular also grants the Bank of Mexico the authority to set limits on the amounts of securities loans conducted by Covered Investment Funds based on asset characteristics and market conditions, with annual evaluations required. These modifications apply to credit institutions, brokerage houses, investment funds, retirement fund societies, insurance companies, surety institutions, and the National Agricultural, Rural, Forestry and Fisheries Development Financial Institution.
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