Regulatory Alerts2008-11-10 | Circular 56/2008Added
Circular 56/2008 — Rules for Interest Rate Swap Auctions
The Bank of Mexico establishes rules for interest rate swap auctions, defining eligible bidders as credit institutions and specifying competitive bidding procedures for single and multiple interest rate types. The document mandates daily valuation of swaps, requires credit institutions to provide collateral via Indeval within one business day of notice, and imposes a 1% daily penalty on unpaid amounts while allowing the Bank to accelerate operations. It further outlines the process for early termination after 180 days, limiting daily early terminations to 5% of assigned reference amounts, and sets the effective date of the circular to November 11, 2008.
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