Regulatory Alerts2009-12-17 | Circular 31/2009Added
Circular 31/2009 — Amending Circular 115/2002
The Bank of Mexico amends Circular 115/2002 to clarify that brokerage houses are not required to sell shares pledged as collateral when clients settle stock purchase credit operations in cash, provided the collateral value is at least 100% of the purchased shares. The regulation updates definitions of shares, mandates that clients contribute at least 50% of the acquisition value in cash or provide collateral worth at least 100%, and establishes a minimum guarantee coefficient of 0.50 at the time of purchase. It further requires additional collateral if the market value of shares drops such that the guarantee coefficient falls below 0.25, with clients required to provide these guarantees on the same day they are requested. These modifications enter into force on December 22, 2009.
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