Regulatory Alerts2007-08-31 | Circular 3/2007Added
Circular 3/2007 — Modifies Circular 115/2002
The Bank of Mexico incorporates Office 305-110/2007 into Appendix 1 of Annex 5 of Circular 115/2002, establishing the procedure for securities market makers to pay a premium to the Bank of Mexico for each securities lending operation. This premium is calculated by multiplying the weighted government funding rate by a factor determined based on the market maker's activity in repo and securities lending markets, with a default factor of 5% for new market makers during their first two months. The modifications to the measurement of the IAA and the premium calculation enter into force on the business day following the notice and October 1, 2007, respectively.
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