Regulatory Alerts2010-12-14 | Circular 41/2010Added
Circular 41/2010 — Modifies Circular 115/2002
This circular amends section CB.5 of Circular 115/2002 to authorize securities houses to purchase from the Bank of Mexico government securities, Monetary Regulation Bonds (BREMS), and Federal Development Bonds (BONDES D) participating in the Bank's monetary regulation auctions. The modification explicitly permits these transactions in accordance with the specific auction rules established by the Bank of Mexico. The regulation entered into force on December 15, 2010.
CIRCULAR 41/2010 Mexico, D.F., December 14, 2010. TO SECURITIES HOUSES: SUBJECT: MODIFICATIONS TO CIRCULAR 115/2002
The Bank of Mexico, in order to promote the sound development of the financial system, considers it appropriate that securities houses may participate in auctions of Monetary Regulation Bonds and government securities that the Bank of Mexico conducts for monetary regulation purposes.
Therefore, based on Article 28 of the Political Constitution of the United Mexican States, paragraphs six and seven; Articles 3, fraction III, 7, fractions I and VI, 8, 9, 10, 17, and 24 of the Bank of Mexico Law; Article 22 of the Law for Transparency and Orderly Regulation of Financial Services; as well as Article 8, paragraphs four and seven, 10, 12 in relation with Article 19, fraction VII, and 14 Bis in relation with Article 17, fraction I, of the Internal Regulations of the Bank of Mexico, which grant the authority to issue provisions through the General Directorate of Central Bank Operations and the General Legal Directorate, respectively; as well as the Sole Article of the Agreement on the Affiliation of the Administrative Units of the Bank of Mexico, fractions VII and XII; it has resolved to modify the second paragraph of section CB.5 of Circular 115/2002 addressed to securities houses, as follows:
CB.5 ALLOCATION OF GOVERNMENT SECURITIES … “Securities houses may purchase from the Bank of Mexico: a) SECURITIES in accordance with the provisions of this section; b) BREMS, SECURITIES, and Segregated Coupons of the Federal Government Development Bonds denominated in national currency with a fixed interest rate or in investment units, in accordance with the provisions of the “Rules for the Auctions of Monetary Regulation Bonds and Government Securities conducted by the Bank of Mexico”; and c) BREMS and BONDES D subject to the “Rules for the Allocation of Monetary Regulation Bonds (BREMS) and Federal Government Development Bonds (BONDES D) conducted by the Bank of Mexico”. ”
TRANSITORY SINGLE. This Circular shall enter into force on December 15, 2010.
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