Regulatory Alerts2016-03-08 | Circular 9/2012Added
Circular 9/2012 — Modifies Circular 4/2012
The Bank of Mexico amends Circular 4/2012 to update the list of permitted underlying assets for derivative operations, adding specific commodities such as corn, wheat, soy, sugar, rice, sorghum, cotton, oats, coffee, orange juice, cocoa, barley, milk, canola, soybean oil, and soybean meal, as well as pork, cattle, natural gas, heating oil, diesel, gasoline, crude oil, aluminum, copper, nickel, platinum, lead, and zinc. The amendment prohibits entities from settling derivatives on these newly added underlying assets (commodities and metals) in kind. Additionally, it clarifies internal control requirements by specifying that the settlement of operations must be performed by support staff under duly authorized instructions, with verified amounts and counterparty confirmation. These modifications enter into force on June 20, 2012.
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