Regulatory Alerts2010-02-23 | Circular 8/2010Added
Circular 8/2010 — Auctions for the Sale of US Dollar Put Options
The Banco de México establishes rules for credit institutions to sell US dollars via put options through monthly auctions, requiring bids in increments of one million dollars and specifying auction types, assignment procedures, and exercise conditions. Institutions must pay a premium to acquire the right to sell dollars at the exercise rate if it is equal to or lower than the maximum sale rate, with settlement occurring two business days after exercise. The document mandates specific notification procedures, authorizes automatic debits for premiums and penalties for non-delivery, and exempts these transactions from certain foreign exchange risk position calculations.
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