Circular 17/2015 — Modifies Circular 47/2008

2015, Year of the Generalissimo José María Morelos y Pavón CIRCULAR 17/2015 Mexico, D.F., November 19, 2015. TO CREDIT INSTITUTIONS: SUBJECT: MODIFICATIONS TO CIRCULAR 47/2008 (AUCTIONS FOR THE SALE OF US DOLLARS) The Bank of Mexico, with the purpose of continuing the promotion of the sound development of the financial system and in compliance with the agreement adopted by the Exchange Commission to, in order to reduce the probability that unusual events affect the stability in the functioning of the national foreign exchange market, the Bank of Mexico convenes one or more supplementary dollar auctions in addition to those it carries out in accordance with Circular 47/2008 currently in force, based on articles 28, sixth and seventh paragraphs, of the Political Constitution of the United Mexican States, 7, fraction X, 8, 14 and 24 of the Bank of Mexico Law, 22 of the Law for Transparency and Order of Financial Services, 8, fourth and seventh paragraphs, 10, first paragraph, 14 Bis, in relation to 17, fraction I, and 19 Bis, fraction V, of the Internal Regulations of the Bank of Mexico, which grant it the authority to issue provisions through the General Legal Directorate and the National Operations Directorate, respectively, as well as Second, fractions VI and X, of the Agreement on the Affiliation of the Administrative Units of the Bank of Mexico, has resolved to modify numerals 1, first paragraph, 3, first paragraph, 4, first paragraph, add two paragraphs to numeral 1, two fractions to the first paragraph of numeral 4, as well as repeal the second paragraph of numeral 3 and the second paragraph of numeral 4, of the terms for the “Auctions for the Sale of US Dollars” provided for in Circular 47/2008, to remain in the following terms:

“1. CALL FOR AUCTIONS The Bank of Mexico will call up to three ordinary auctions for the sale of US dollars (dollars) every banking business day. In the event that, during the same banking business day, the entire amount of dollars auctioned is allocated in one or more of the ordinary auctions referred to in the previous paragraph, the Bank of Mexico will call for supplementary auctions on that same day. For the purposes of what is provided in this numeral, the Bank of Mexico will make known, through the Bank of Mexico Account Holder Attention System (SIAC-BANXICO), the call for each of the referred auctions, in which it will specify the amount of dollars to be auctioned, the type of auction to be held, as well as the other characteristics of the auction in question.”

“3. BIDS The bids will have a minimum price equivalent to the result of multiplying: i) the exchange rate that the Bank of Mexico publishes in the Official Gazette of the Federation on the banking business day immediately preceding the day of the auction, in accordance with what is established in article 171 of Circular 3/2012 issued by the Bank of Mexico, by ii) the factors that the Exchange Commission determines and makes known by the Bank of Mexico in the calls for the auctions in question. Repealed.”

“4. SUBMISSION OF BIDS Interested institutions may submit their bids, through SIAC-BANXICO or through any other electronic, computing or telecommunications medium authorized for this purpose by the Bank of Mexico, in the following terms: I. Regarding ordinary auctions, interested institutions may submit their bids in one or several of the periods included in the following schedules on the day on which said auctions take place: a) from 9:00:00 to 9:02:00 hours for the first auction; b) from 12:00:00 to 12:02:00 hours for the second auction, and c) from 15:00:00 to 15:02:00 hours for the third auction. In the event that in the first ordinary auction a part of the amount of the auctioned dollars is allocated, the amount for the second ordinary auction will be the result of the difference between the amount announced in the call for the first ordinary auction and the amount allocated in that same auction. If in the second ordinary auction a part of the amount corresponding to that auction is allocated, the amount to be auctioned for the third ordinary auction will be the result of subtracting, from the amount announced in the first call, those allocated in the first and second ordinary auctions. II. Regarding supplementary auctions, interested institutions may submit their bids in accordance with the call that the Bank of Mexico makes known in terms of the third paragraph of numeral 1 of this Circular. In the event that in the first supplementary auction a part of the amount of auctioned dollars is allocated, the Bank of Mexico may call, in terms of the third paragraph of numeral 1 of this Circular, for subsequent supplementary auctions for the amount resulting from the difference between the amount announced in the call for the immediate previous supplementary auction and the amount allocated in said subsequent auctions. The amount to be allocated through the supplementary auctions referred to in this fraction may not exceed, on the same banking business day, the amount announced in the first call for a supplementary auction. Repealed. …” TRANSITIONAL SINGLE. This Circular will enter into force on November 23, 2015.