Regulatory Alerts2008-03-13 | Circular 9/2008Added
Circular 9/2008 — Rules for Purchase Auctions of Fixed-Rate Government Development Bonds and Investment Unit Bonds
The document establishes rules for Banco de México to conduct purchase auctions of fixed-rate Government Development Bonds (Bonos) and Investment Unit Bonds (Udibonos) on behalf of the Federal Government. Eligible bidders are limited to credit institutions, brokerage houses, investment companies, specialized retirement fund societies, and other authorized entities, which must bid on their own account and are prohibited from bidding if their net long position exceeds 30% of the outstanding amount. The rules define auction types (single-price, multiple-price, fixed-price), submission procedures via the SIAC-BANXICO system, assignment criteria based on ascending unit prices, and settlement mechanics including the calculation of accrued interest and conventional penalties of 1% for non-delivery or rule violations.
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