Regulatory Alerts2003-05-09 | Circular 3/2003Added
Circular 3/2003 — Electronic Submission of Provisions to Investment Funds
The Bank of Mexico modifies section CB.1.3(d) and Annex 1 of Circular 115/2002 to establish a valuation mechanism for fixed-income securities held in own position or used in repo operations, utilizing weighted average prices from Price Providers with random weights. The regulation mandates that securities unable to be valued under the new Annex 1 procedures cannot be used as collateral in repo operations until valuation is possible. Specific valuation procedures are defined for CETES, BONDES, UDIBONOS, BPAS, and BREMS upon first placement, while a 1% annual discount is applied to CETES especiales, FOBAPROA titles, and IPAB payment instruments, with an additional 25% discount for FOBAPROA titles. These modifications enter into force on May 19, 2003.
More like this from BANXICO
We email you every new BANXICO publication the day it's published.