Regulatory Alerts2024-05-16 | Circular 7/2024Added · Updated
Circular 7/2024 — Modifications to the Repo Rules
The Bank of Mexico modifies definitions, authorized counterparties, eligible collateral, and operational requirements for repo operations conducted by credit institutions, brokerage houses, investment funds, retirement fund societies, general warehouse depositories, insurance companies, guarantee institutions, and regulated multiple-object financial societies. The update introduces new definitions for State Productive Enterprises, MAE, and Commercial Societies, restricts eligible collateral for foreign securities to those with specific credit ratings, and imposes operational certification and transparency obligations on general warehouse depositories. It also establishes rules for value substitution, contract terms, and settlement timelines, while repealing previous provisions regarding warehouse deposit certificates.
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