Circular 2/2005 — Modifications to Circular 115/2002

CIRCULAR 2/2005
Mexico City, March 2, 2005.
TO BROKERAGE HOUSES:
SUBJECT: MODIFICATIONS TO CIRCULAR 115/2002.
The Bank of Mexico, pursuant to Articles 24 and 26 of its Law, taking into account that the “Rules for the Segregation and Reconstitution of Securities” issued by the Ministry of Finance and Public Credit and made known to those brokerage houses through our Circular 2/2004 dated November 3, 2004, entered into force on March 1 of this year, and considering that the coupons segregated from the Federal Government’s Development Bonds denominated in national currency with a fixed interest rate or in Investment Units must have the same regime as such securities before segregation, has resolved, effective from this date, to modify subsection d) of the third paragraph of section CB.2 of Circular 115/2002, to read as follows:

“CB.2. REPO OPERATIONS BETWEEN BROKERAGE HOUSES AND CREDIT INSTITUTIONS WITH RESOURCES DERIVED FROM REPO OPERATIONS BETWEEN THE BANK OF MEXICO AND THOSE INSTITUTIONS. … … The aforementioned repo operations between brokerage houses and credit institutions must have the following characteristics:
a) to c) … d) Securities Subject to the Repo: i) Certificates of the Federal Treasury denominated in national currency (CETES) excluding those issued under credit restructuring programs in investment units (SPECIAL CETES); ii) Federal Government Development Bonds denominated in national currency (BONDES) or in investment units (UDIBONOS); iii) Segregated Coupons of the Federal Government’s Development Bonds denominated in national currency with a fixed interest rate or in Investment Units referred to in the “Rules for the Segregation and Reconstitution of Securities” issued by the Ministry of Finance and Public Credit; iv) Securities issued by the Institute for the Protection of Bank Savings regarding which the Bank of Mexico acts as financial agent for issuance, placement, purchase, and sale, in the national market regardless of their term (BONOS DE PROTECCIÓN AL AHORRO (BPAs)), and v) Monetary Regulation Bonds (BREMS), which are owned by the brokerage houses; …”