Circular 2/2014 — Modifies Circular 5/2011

Friday, February 14, 2014 OFFICIAL GAZETTE (First Section) BANK OF MEXICO CIRCULAR 2/2014 addressed to credit institutions and brokerage houses, regarding modifications to the procedure to act as Market Makers for Government Securities.

A logo appears at the margin, stating: Bank of Mexico.

CIRCULAR 2/2014 TO CREDIT INSTITUTIONS AND BROKERAGE HOUSES: SUBJECT: MODIFICATIONS TO THE PROCEDURE TO ACT AS MARKET MAKERS FOR GOVERNMENT SECURITIES

The Bank of Mexico, in its capacity as the financial agent of the Federal Government, with the objective of complying with the instruction of the Ministry of Finance and Public Credit to inform those entities of modifications to the procedure to act as market makers for government securities, in order to continue fostering the development of the market for Federal Government Development Bonds denominated in national currency with a fixed interest rate coupon (BONOS) and Federal Government Development Bonds denominated in Investment Units (UDIBONOS), attaches a copy of Official Document No. 305.-010/2014, issued by said Ministry, which will enter into force on the next banking day following its publication in the Official Gazette of the Federation.

The foregoing, based on what is provided in articles 28, paragraphs sixth and seventh of the Political Constitution of the United Mexican States; 3rd, fraction III; 7th, fraction I and 10 of the Bank of Mexico Law; 22 of the Law for Transparency and Ordering of Financial Services; as well as 4th, first paragraph, 8th, paragraphs fourth and seventh, 10, first paragraph, 14 Bis in relation to 17 fraction I and 12 first paragraph in relation to 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 General Directorate of Central Bank Operations, respectively; as well as Second, fractions VI and X of the Agreement on the Affiliation of Administrative Units of the Bank of Mexico.

(First Section) OFFICIAL GAZETTE Friday, February 14, 2014 Mexico, D.F., February 12, 2014.- BANK OF MEXICO: The Director of Central Bank Regulations, Eduardo Aurelio Gómez Alcázar.- Rubric.- The Manager of National Operations, Juan Rafael García Padilla.- Rubric.

“ A seal appears at the margin with the National Coat of Arms, stating: United Mexican States.- Ministry of Finance and Public Credit.- Undersecretariat of Finance and Public Credit.- Public Credit Unit.- Official Document No. 305.-010/2014. Mexico, D.F., February 07, 2014. LIC. JAIME JOSÉ CORTINA MORFÍN General Director of Central Bank Operations. Bank of Mexico Presente

The Ministry of Finance and Public Credit, through the Public Credit Unit, based on articles 4th, fractions I and V of the General Public Debt Law; 3rd, fraction III, 7th, fraction I and 10 of the Bank of Mexico Law; 17, fractions VIII, X and XXI of the Internal Regulations of the Ministry of Finance and Public Credit; Single, fractions V and VII of the Decree authorizing the Federal Executive to issue Treasury Certificates of the Federation, published in the Official Gazette of the Federation (DOF) on July 8, 1993; 1st, fraction VI, 2nd and 3rd of the Decree authorizing the Ministry of Finance and Public Credit to issue Federal Government Development Bonds, published in the DOF on September 22, 1987, modified by Decree published in the DOF on September 9, 1998; the Decree establishing the obligations that may be denominated in Investment Units and reforming and adding various provisions of the Federal Tax Code and the Income Tax Law, published in the DOF on April 1, 1995, modified by Decree published in the DOF on December 7, 2009 and article 20 Ter of the Federal Tax Code, considers it convenient to continue fostering the development of the market for Federal Government Development Bonds with Fixed Interest Rate (BONOS) and denominated in Investment Units (UDIBONOS).

Therefore, in relation to Official Document 305.-027/2011 dated January 27, 2011, modified by Official Document 305.-105/2011 dated July 26, 2011, by Official Document 305.-178/2011 dated November 18, 2011, by Official Document 305.-023/2012 dated February 9, 2012 and by Official Document 305.-085/2012 dated July 3, 2012, it has resolved to add a second paragraph to items 4.1.3 and 7.1.3, to remain in the following terms:

4. RIGHTS OF MARKET MAKERS 4.1.3 … When a syndicated auction is held for the placement of BONOS, Market Makers may not exercise their purchase option right regarding BONOS during the week in which said syndicated auction takes place. The foregoing regardless of the maturity term of the instrument referenced in the corresponding syndicated auction.

5. RIGHTS OF UDIBONOS MARKET MAKERS 7.1.3 … When a syndicated auction is held for the placement of UDIBONOS, UDIBONOS Market Makers may not exercise their purchase option right regarding UDIBONOS during the week in which said syndicated auction takes place. The foregoing regardless of the maturity term of the instrument referenced in the corresponding syndicated auction.

Without further particular, I renew to you the assurances of my most distinguished consideration.

Friday, February 14, 2014 OFFICIAL GAZETTE (First Section) Sincerely, The Head of the Public Credit Unit, Alejandro Díaz de León Carrillo.- Rubric. c.c.p. Dr. Fernando Aportela Rodríguez, Undersecretary of Finance and Public Credit.- Present Lic. Jorge Alberto Mendoza Sánchez, Deputy General Director of Collection.- Present