Regulatory Alerts2020-06-01 | Circular 19/2020Added
Circular 19/2020 — Modifies the Repo Rules
The Bank of Mexico updates the regulatory framework for repo operations to align with FSB and BCBS recommendations, aiming to reduce procyclicality and improve market liquidity. The circular expands the universe of eligible entities to include insurance companies, guarantee institutions, regulated multiple-object financial societies with credit institution links, and certified general warehouses. It also broadens eligible securities to include deposit certificates issued by warehouses and introduces new definitions and credit rating requirements for transactions involving non-bank entities and foreign securities.