Circular 57/2008 — Modifies Circular 56/2008

"2008, Year of Physical Education and Sport" CIRCULAR 57/2008 Mexico, D.F. on November 13, 2008. TO CREDIT INSTITUTIONS:
SUBJECT: MODIFICATION TO THE RULES FOR INTEREST RATE SWAP AUCTIONS

The Bank of Mexico, based on what is provided in Article 28 of the Political Constitution of the United Mexican States, sixth and seventh paragraphs; Article 7, fraction X; Articles 8 and 14 of the Bank of Mexico Law; Article 22 of the Law for Transparency and Ordering of Financial Services; Article 8, third and sixth paragraphs; Articles 10, 17, fraction I, and 19, fraction IX of the Internal Regulations of the Bank of Mexico, which provide for the attribution of the Central Bank, through the Central Banking Provisions Directorate and the Operations Directorate, respectively, to participate in the issuance of provisions; Article 1, fractions I and IV of the Agreement on the Affiliation of the Administrative Units of the Bank of Mexico, with the objective of clarifying the reference provided in the first paragraph of section 10 of the "Rules for Interest Rate Swap Auctions," made known through Circular 56/2008, has resolved to modify the last part of the cited paragraph, to read as follows:

"RULES FOR INTEREST RATE SWAP AUCTIONS"

"10. EARLY MATURITY
The Bank of Mexico may terminate any Swap early after 180 natural days have elapsed from the start date of the operation, for which it will send written communication to the corresponding credit institution with at least one banking day of advance notice prior to the date on which the operation is to be terminated. This period shall not apply in the case provided for in the last part of the fifth paragraph of the preceding section 9. . . ."

TRANSITORY
SINGLE.- This Circular shall enter into force on November 13, 2008.