Regulatory Alerts2017-03-06 | Circular 4/2017Added
Circular 4/2017 — Modifications to the Procedure for Acting as Market Makers for Government Securities
Circular 4/2017 modifies the procedure for credit institutions and brokerage houses acting as market makers for government securities, specifically allowing securities lending operations with the Bank of Mexico for up to 60 days and granting the right to participate in swap operations to fully liquidate such lending positions. The amendments update definitions, application processes, and obligations, including a collateral maintenance requirement of 102% and a suspension mechanism for market makers whose proportional net long position in BONOS and UDIBONOS averages 35% or more over monthly periods. These changes are effective upon publication in the Official Gazette on March 6, 2017.
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