Circular 3/2018 — Modifications to Circular 16/2012

Friday, January 26, 2018 OFFICIAL GAZETTE (First Section) 63 BANCO DE MEXICO CIRCULAR 3/2018 addressed to Credit Institutions and Brokerage Houses, regarding Modifications to Circular 16/2012.

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

CIRCULAR 3/2018 TO CREDIT INSTITUTIONS AND BROKERAGE HOUSES: SUBJECT: MODIFICATIONS TO CIRCULAR 16/2012

The Bank of Mexico, in its capacity as the financial agent of the Federal Government, with the purpose of continuing to promote the sound development of the financial system—in light of the modifications that the Ministry of Finance and Public Credit, through official letter number 305.-156/2017 made known by this Central Bank through Circular 26/2017 published in the Official Gazette of the Federation on January 5, 2018, has resolved to carry out regarding the procedure to which credit institutions and brokerage houses acting as market makers regarding government securities referred to in official letter number 305.-027/2011 of said Ministry must adhere—considers it convenient to make adjustments to the rules for the auctions for the placement of segregated coupons of federal government development bonds denominated in investment units.

For the above reason, based on Articles 28, paragraphs sixth and seventh, of the Political Constitution of the United Mexican States, 3, fraction III, 7, fraction I, and 10 of the Bank of Mexico Law, 22 of the Law for Transparency and Ordering of Financial Services, 8, paragraphs fourth and seventh, 10, first paragraph, 12, first paragraph, in relation to 19 Bis, fraction V, and 17, fraction I, of the Internal Regulations of the Bank of Mexico, which grant it the authority to issue provisions through the General Directorate of Central Bank Operations and the Directorate of Central Bank Regulations, respectively, as well as Second, fractions VI and X, of the Agreement on the Affiliation of Administrative Units of the Bank of Mexico, it has resolved to modify Article 3 and Annexes 2 and 3, as well as add the definition of “UDIBONOS Market Makers” to Article 1, of the “Rules for the auctions for the placement of segregated coupons of Federal Government Development Bonds denominated in investment units”, contained in Circular 16/2012, to remain in the following terms:

RULES FOR THE AUCTIONS FOR THE PLACEMENT OF SEGREGATED COUPONS OF FEDERAL GOVERNMENT DEVELOPMENT BONDS DENOMINATED IN INVESTMENT UNITS

“Definitions Article 1st.- … … UDIBONOS Market Makers: to the credit institutions and brokerage houses that the Ministry determines may act as such in terms of the applicable provisions. …”

“Bidders

64 (First Section) OFFICIAL GAZETTE Friday, January 26, 2018 Article 3rd.- Only UDIBONOS Market Makers may be bidders and, therefore, acquire Segregated Coupons in primary placement.”

“ANNEX 2 APPLICATION TO ACQUIRE SEGREGATED COUPONS OF PRINCIPAL OF FEDERAL GOVERNMENT DEVELOPMENT BONDS DENOMINATED IN INVESTMENT UNITS (UDIBONOS) … BANCO DE MEXICO NATIONAL OPERATIONS MANAGEMENT 5 de Mayo Avenue, No. 6 Centro Neighborhood, C.P. 06000, Mexico City Present … Mexico City on ____ of _____ of ___. …”

“APPLICATION TO ACQUIRE SEGREGATED COUPONS OF INTERESTS OF FEDERAL GOVERNMENT DEVELOPMENT BONDS DENOMINATED IN INVESTMENT UNITS (UDIBONOS) … BANCO DE MEXICO NATIONAL OPERATIONS MANAGEMENT 5 de Mayo Avenue, No. 6 Centro Neighborhood, C.P. 06000, Mexico City Present … Mexico City on ____ of _____ of ___. …”

“ANNEX 3 MODEL OF AUTHORIZATION TO THE BANK OF MEXICO … Mexico City on ____ of _____ of ___. BANCO DE MEXICO OPERATIONS MANAGEMENT DIRECTORATE 5 de Mayo Avenue, No. 6 Centro Neighborhood, C.P. 06000, Mexico City Present …”

TRANSITORY SINGLE. This Circular shall enter into force on the next Business Day following its publication in the Official Gazette of the Federation.

Mexico City, January 22, 2018.- The General Director of Central Bank Operations, Jaime José Cortina Morfín.- Initials.- The Director of Central Bank Regulations, Mario Ladislao Tamez López Negrete.- Initials.

Friday, January 26, 2018 OFFICIAL GAZETTE (First Section) 65 For any inquiries regarding the content of this Circular, please contact the Directorate of Authorizations, Inquiries and Legal Control, at the phones (55) 5237-2308, (55) 5237-2317 or (55) 5237-2000 Ext. 3200.