Regulatory Alerts2011-07-29 | Circular 18/2011Added
Circular 18/2011 — Modifies Circular 5/2011
The Bank of Mexico modifies the procedure for acting as market makers for government securities, effective August 1, 2011. The amendments update definitions, including the exclusion of certain financial instruments, and adjust the calculation of the Activity Index (IA) and UDIBONOS Activity Index (IAU) to exclude transactions within the same financial group or those not fostering liquidity. Market makers are required to quote buy and sell yields for CETES, BONOS, and UDIBONOS daily between 9:00 and 13:00 hours with a minimum nominal amount of 20 million pesos. Additionally, the collateral value for securities lending operations must be maintained at no less than 102% of the loaned securities' value plus any premiums charged by Indeval.
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