Circular 29/2010 — Modification of Circular 2019/95

CIRCULAR 29/2010 Mexico, D.F., October 4, 2010. TO MULTIPLE BANKING INSTITUTIONS: SUBJECT: MODIFICATIONS TO CIRCULAR 2019/95.

The Bank of Mexico, based on Articles 28 of the Political Constitution of the United Mexican States, sixth and seventh paragraphs; 24 and 26 of the Bank of Mexico Law; 46, section XXV and 53, section II of the Credit Institutions Law; as well as 8th, third and sixth paragraphs, 10, 14 first paragraph in relation to 25, section II; 17, section I and 19, section IX, which provide for the powers of the Bank of Mexico through the General Directorate of Financial System Analysis, the Directorate of Central Banking Regulations, and the Directorate of Operations, to issue regulations, all of them from the Internal Regulations of the Bank of Mexico, Single Agreement on the Assignment of Administrative Units of the Bank of Mexico, sections I, III and IV, with the purpose of promoting the sound development of the financial system, by establishing that the settlement of Development Bonds of the Federal Government with fixed interest rate in national currency issued in Mexico (BONOS) may be celebrated up to a term of eight business days, without the respective operation being considered as a derivative operation, in order to facilitate the negotiation of these securities with foreign investors; has resolved to modify subsection a) of the first paragraph, as well as add a sixth paragraph, both to numeral M.42. of Circular 2019/95, to remain in the following terms:

M.42. OPERATIONS WITH GOVERNMENT SECURITIES

For the purposes of this Circular, Government Securities shall be understood as:

“a) Certificates of the Treasury of the Federation denominated in national currency (CETES); Development Bonds of the Federal Government denominated in national currency (BONDES) or in investment units (UDIBONOS) or with fixed interest rate in national currency issued in Mexico (BONOS); segregated coupons of the Development Bonds of the Federal Government denominated in national currency with fixed interest rate or in investment units to which the “Rules for the Segregation and Reconstitution of Titles” issued by the Ministry of Finance and Public Credit refer (Segregated Coupons); debt titles of the United Mexican States placed in international markets and registered in the National Securities Registry (BONOS UMS), and titles issued by the

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Institute for the Protection of Bank Savings with respect to which the Bank of Mexico acts as financial agent for the issuance, placement, purchase and sale, in the national market regardless of their term (BONOS DE PROTECCIÓN AL AHORRO (BPAs), and

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Regarding operations with Development Bonds of the Federal Government with fixed interest rate in national currency issued in Mexico (BONOS), the aforementioned Rules shall be applicable when the settlement date of these titles is after the eighth banking business day from their negotiation date.”

TRANSITORY SINGLE. This Circular shall enter into force on October 6, 2010.