Regulatory Alerts2017-12-21 | Circular 23/2017Added
Circular 23/2017 — Modifies Circular 22/2017
The Bank of Mexico modifies Annex 1 of the rules regarding adherence to the Global Code of Conduct for foreign exchange transactions to align with amendments adopted by the Global Foreign Exchange Committee (GFXC) on November 14, 2017. The update revises the definition of the Global Code of Conduct, Principle 17 concerning the 'last look' trading practice, and the associated examples in Annex 1. These changes impose transparency and risk control obligations on market participants using last look, prohibiting the use of client order information for pricing or hedging during the last look window, while allowing exceptions for explicitly agreed-upon risk-free execution arrangements. The modifications enter into force on the next banking business day following publication in the Official Gazette.
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