Circular 9/2017 — Procedure for Market Makers and Udibonos Market Makers to Exercise the Right to Conduct Government Securities Swap Operations with the Bank of Mexico as Financial Agent of the Federal Government

Monday, April 3, 2017 OFFICIAL GAZETTE (Third Section) BANK OF MEXICO CIRCULAR 9/2017 addressed to credit institutions and brokerage houses, regarding the procedure that market makers and Udibonos market makers must follow to exercise the right to conduct government securities swap operations with the Bank of Mexico in its capacity as financial agent of the Federal Government.

A logo appears at the margin, stating: Bank of Mexico.

CIRCULAR 9/2017 TO CREDIT INSTITUTIONS AND BROKERAGE HOUSES: SUBJECT: PROCEDURE THAT MARKET MAKERS AND UDIBONOS MARKET MAKERS MUST FOLLOW TO EXERCISE THE RIGHT TO CONDUCT GOVERNMENT SECURITIES SWAP OPERATIONS WITH THE BANK OF MEXICO IN ITS CAPACITY AS FINANCIAL AGENT OF THE FEDERAL GOVERNMENT

The Bank of Mexico, acting in its capacity as financial agent of the Federal Government, considering, on the one hand, the resolution of the Ministry of Finance and Public Credit contained in its letter number 305.-033/2017, dated February 28, 2017, made known by this Central Bank through Circular 4/2017, published in the Official Gazette of the Federation on March 6, 2017, in virtue of which said department made modifications to the procedure to which credit institutions and brokerage houses acting as market makers regarding government securities must be subject, initially established through the letter of said same department number 305.-027/2011, dated January 27, 2011, and, on the other hand, with the object of promoting the sound development of the financial system and in attention to the convenience of i) having a greater number of tools that allow the Federal Government to optimize the maturity profile of the government securities under its charge; ii) continuing to promote the development of the internal debt market through the strengthening of the figures of Market Makers and Udibonos Market Makers established by the Ministry of Finance and Public Credit; iii) promoting greater liquidity and increasing efficiency in the price formation process of available government securities, and iv) contributing to the reduction of the cost and risk of financing of the Federal Government, in such a way that better internal debt market conditions are established, has resolved to establish a procedure for government securities swaps for those financial institutions that act as Market Makers and Udibonos Market Makers, in accordance with the aforementioned procedure.

For the above reason, based on articles 28, paragraphs sixth and seventh, of the Political Constitution of the United Mexican States, 3, fraction III, 7, fraction I, 10 and 14, of the Bank of Mexico Law, 22 of the Law for Transparency and Ordering of Financial Services, 8, paragraphs fourth and seventh, 10, first paragraph, 12, first paragraph, in relation to 19 Bis, fraction V, and 17, fraction I, of the Internal Regulations of the Bank of Mexico, which grant it the authority to issue provisions through the General Directorate of Central Bank Operations and the Directorate of Central Bank Provisions, respectively, as well as Second, fractions VI and X, of the Agreement on the Affiliation of the Administrative Units of the Bank of Mexico, has resolved to issue the following procedure:

PROCEDURE THAT MARKET MAKERS AND UDIBONOS MARKET MAKERS MUST FOLLOW TO EXERCISE THE RIGHT TO CONDUCT GOVERNMENT SECURITIES SWAP OPERATIONS WITH THE BANK OF MEXICO, IN ITS CAPACITY AS FINANCIAL AGENT OF THE FEDERAL GOVERNMENT

CHAPTER I PRELIMINARY ASPECTS

1a. Objective.- The purpose of this Circular is to establish the procedure by which Market Makers may participate in the Auctions offered by the Bank of Mexico, in its capacity as financial agent of the Federal Government, as well as the terms and conditions to which said Market Makers must be subject in the celebration and execution of the respective Swaps.

2a. Definitions.- For the purposes of this Circular, the following shall be understood:

I. BONDE: Development Bonds issued by the Federal Government of the United Mexican States, denominated in national currency or UDI, with a fixed interest rate.

II. CETE: Treasury Certificates of the Federation issued by the Federal Government of the United Mexican States, excluding those issued under programs for restructuring credits denominated in UDI (Special Cete).

III. Account: the national currency deposit account maintained at the Bank of Mexico by those Market Makers that are credit institutions, in accordance with the Provisions applicable to the operations of credit institutions and the National Development Bank for Agricultural, Rural, Forestry and Fisheries Development, issued by said Bank through Circular 3/2012, as modified subsequently to its issuance, or those Market Makers that are brokerage houses, in accordance with the applicable contracts.

IV. DALÍ: The System for the Deposit, Administration and Settlement of Securities administered by INDEVAL.

V. Business Day: the day on which financial entities are not obliged to close their doors or suspend operations, in terms of the general provisions issued for such effect by the National Banking and Securities Commission.

VI. Assigned Market Maker: a Market Maker that, by virtue of the bids it has presented in an Auction in accordance with this Circular, has received some allocation of the Swaps offered in said Auction.

VII. Market Maker: a credit institution or brokerage house that the Ministry determines may act as a Market Maker or Udibonos Market Maker in accordance with the Letter.

VIII. Bidding Market Maker: a Market Maker that meets the requirements established in this Circular to present bids in the Auctions.

IX. Letter: the one issued by the Ministry with reference number 305.-027/2011, made known by the Bank of Mexico through Circular 5/2011 of the Bank of Mexico, dated February 14, 2011, in terms of the modifications made subsequently.

X. Swap: the operation that, as a result of the Auction carried out by the Bank of Mexico, this concludes with the respective Assigned Market Maker, with the object that the latter assumes the obligation to deliver to the Bank of Mexico the Securities resulting from the allocation of the Auction in question and acquires the right to receive from said Bank of Mexico those other Securities assigned in that same Auction.

XI. Ministry: the Ministry of Finance and Public Credit.

XII. SIAC-BANXICO: The Bank of Mexico Account Holder Attention System.

XIII. Auction: the Swap of Securities Auction that the Bank of Mexico carries out in accordance with what is provided in this Circular.

XIV. UDI: the unit of account, whose value in national currency is published by the Bank of Mexico in the Official Gazette of the Federation, in accordance with articles Third of the "Decree by which obligations that may be denominated in investment units are established and reform and adds various provisions of the Tax Code of the Federation and the Income Tax Law" and 20 Ter of the Tax Code of the Federation.

XV. Securities: BONDE and CETE.

The terms mentioned above may be used in singular or plural, without it being understood that their meaning changes.

3a. Bidders.- Only Market Makers that have celebrated with the Bank of Mexico, in terms of the Letter, securities lending operations that are in force at the close of INDEVAL operations on the Business Day immediately preceding the date of the Auction in question, and that meet the requirements established in 7a. of the procedure included in this Circular, may present bids in the Auctions.

4a. Call for Auctions.- The Bank of Mexico will make known to Bidding Market Makers the calls for Auctions, through its internet page << www.banxico.org.mx >>, of SIAC-BANXICO or, in case said system is not available, through any other electronic, computing or telecommunications medium authorized for this effect by the Bank of Mexico, as it will make known to Bidding Market Makers in due course.

In each of the calls referred to in this Circular, the Bank of Mexico will make known the characteristics of the Swap that will be offered in the Auction in question, as well as the other characteristics necessary for the holding of the corresponding Auction.

5a. Type of Auctions.- Auctions will be held at a fixed rate or price, that is, the offered amount of Swap will be allocated at a fixed rate or price for each of the accepted bids, in terms of what is stated in 12a. of the procedure included in this Circular.

6a. Prices.- The Bank of Mexico, in each of the Auctions, will make known the rate of CETE or the price of BONDE at which it is willing to carry out the allocation, through its internet page << www.banxico.org.mx >> or, in case said page is not available, through any other electronic, computing or telecommunications medium, authorized for this effect by the Bank of Mexico.

The references to "rates" included in this Circular correspond to discount rates expressed in percentage terms, annual, rounded to hundredths and based on three hundred sixty day years.

On the other hand, references to "prices" correspond to clean prices, that is, those that do not include accrued but unpaid interest, rounded to ten-thousandths.

7a. Requirements to present bids in Auctions.- The Market Maker interested in participating in the Auctions must previously authorize the Bank of Mexico so that this: (i) instructs INDEVAL to charge and credit the total of the Securities to be delivered and received by the Bank of Mexico in the own securities account that INDEVAL maintains for the Market Maker in question; (ii) carry out charges or credits in the Account of said Market Maker for the cash difference in favor or against the Market Maker resulting from the Auction, in accordance with what is established in 15a. of the procedure included in this Circular, and (iii) carry out the charge in the Account for the amount resulting from what is provided in 17a. of this same Circular.

The Market Maker referred to in the previous paragraph must grant the authorization indicated therein through a document in a form substantially equal to the model included in Annex 1 of this Circular, a copy of which must be delivered to INDEVAL. Said document must be signed by those who have the authority to exercise acts of dominion in the name and representation of the Market Maker in question and, when presented to the Bank of Mexico, must be accompanied by a certified copy and a simple copy of the public instrument in which the granting of the referred powers is recorded, as well as a simple copy of the official identification issued by some federal authority of said persons. The document must be delivered to the Operations Management Department of the Bank of Mexico with an advance of at least three Business Days prior to the date of the first Auction in which the respective Market Maker intends to participate.

CHAPTER II BIDS

8a. Characteristics.- In the bids that each Bidding Market Maker presents in each Auction, this must indicate the issuance key of the Security that the Bank of Mexico offers in the Auction in question, the amount in pesos or UDI for which said Bidding Market Maker is willing to celebrate the Swap as a result of the Auction, in addition to the issuance key of the Security that offers to deliver as part of the Swap celebrated as a result of each Auction.

The amounts at nominal value must be expressed in units of pesos or UDI, or their multiples, as appropriate, and according to each type of Security.

9a. Limits of bids.- The sum of the amounts of the bids presented by the same Bidding Market Maker in the same Auction must not exceed the total announced amount of Securities that the Bank of Mexico indicates in the call for said Auction as corresponding to the total of the Securities that can be allocated.

The sum of the amounts of the bids presented by a Bidding Market Maker regarding the same call must not exceed the amount per issuance that said Bidding Market Maker has acquired under those securities lending operations celebrated in terms of the Letter, which are in force at the close of INDEVAL operations on the Business Day immediately preceding the date of the Auction.

10a. Presentation of bids.- Each Bidding Market Maker may present one or more bids in an Auction carried out under the same call.

Interested Bidding Market Makers must present their bids on the date and time indicated in the respective call, through SIAC-BANXICO.

In case bids cannot be presented through SIAC-BANXICO, the Bank of Mexico, in an extraordinary manner, will authorize that they be presented, within the time established for the holding of the corresponding Auction, through any other electronic, computing or telecommunications medium authorized for this effect by said Bank of Mexico, as it will make known to Bidding Market Makers. Bidding Market Makers that present bids under the supposition of this paragraph must confirm their bids through a document addressed to the National Operations Department of the Bank of Mexico presented in a closed envelope, no later than 17:00:00 hours on the same Business Day of the respective Auction, in a form substantially equal to the formats attached to this Circular as Annexes 2 to 4, accompanied by a presentation letter, as appropriate, for each call of the Auction in question.

The document mentioned in the previous paragraph must be accompanied by the signature knowledge that the Market Maker in question has previously registered in said Bank of Mexico.

11a. Effects of bids.- The presentation of the bids that Bidding Market Makers make in the respective Auctions will constitute the record of their consent to celebrate the Swaps object of said Auctions, in the terms and under the conditions established in this Circular and in the respective calls. In turn, the allocation of the Swaps that the Bank of Mexico carries out in each Auction perfects said Swaps at the moment when said allocation is made known to the respective Assigned Market Makers and, consequently, the latter will be obliged to deliver the Securities resulting from said operations, as well as to comply with the other related obligations, in terms of this Circular.

Any bid presented in an Auction in accordance with this Circular will have an obligatory character for the Bidding Market Maker that presents it and will be irrevocable.

The Bank of Mexico may invalidate the bids it receives if they do not adjust to this Circular or to what is stated in the corresponding call; are not clearly legible; have erasures or corrections, or are incomplete or in some way incorrect.

Likewise, the Bank of Mexico may declare the Auction void or reject any bid if, in its judgment, the participation of the respective Bidding Market Makers in said Auction, by their characteristics, could produce inconvenient effects in the sound development of the securities market in particular or of the financial system in general.

The Bank of Mexico may limit the participation of one or more Bidding Market Makers when the bids they present do not adjust to sound market practices.

CHAPTER III ALLOCATION

12a. Allocation criteria.- The Bank of Mexico will allocate the respective bids in the corresponding Auction at the fixed rate or price determined by the Bank of Mexico and up to the amount indicated in the own bid, without exceeding the total amount that has been offered in the respective call.

In case the sum of the bids exceeds the amount offered in the call, the bids will be attended pro rata with respect to their amount. Likewise, the Bank of Mexico may allocate the Auctions partially. The amounts of the Securities to be delivered to each Assigned Market Maker will be at nominal value and in units of pesos or UDI, as appropriate, and according to each type of Security.

In case that during the period comprised between the presentation of the bids and the moment when the result of the Auctions is made known, failures occur in the systems used by the Bank of Mexico for this effect, it will declare the Auction in question void, even in the case that it has received bids. In this supposition, the Bank of Mexico will call for a new Auction on the same day, by the same medium or, in case this is not available, by any other electronic, computing or telecommunications medium authorized for this effect by the Bank of Mexico and made known to Market Makers.

CHAPTER IV RESULTS

13a. Report of the result of the Auctions.- The Bank of Mexico will make available to the general public, through its internet page << www.banxico.org.mx >>, as well as to Bidding Market Makers who have participated in the Auction, through SIAC-BANXICO or, in case said system is not available, through any other electronic, computing or telecommunications medium authorized for this effect by the Bank of Mexico and made known to Bidding Market Makers, the results of the respective Auction, starting from thirty minutes after the deadline for the presentation of bids. Such information will remain available to the general public and to Bidding Market Makers through the mentioned means, as appropriate, until the results of a new Auction are incorporated.

The Bank of Mexico will inform each Bidding Market Maker in particular, through SIAC-BANXICO or, in case said system is not available, through any other electronic, computing or telecommunications medium authorized for this effect by the Bank of Mexico, starting from thirty minutes after the deadline for the presentation of bids of the Auction in question, the quantity of Securities that, in case, have been allocated to it, and the quantity of Securities that, in case, will deliver.

In the event that, due to fortuitous event or force majeure, SIAC-BANXICO cannot be used to make known the calls or inform the results of the Auctions, the Bank of Mexico will timely communicate the procedure that will be followed for such effects.

CHAPTER V SETTLEMENT

14a. Reservation of ownership.- The Bank of Mexico, in accordance with what is provided by articles 2312 and 2331 of the Federal Civil Code, reserves the ownership of the total of the Securities that must be delivered as a result of the Swap celebrated by each Assigned Market Maker. The Bank of Mexico will maintain the reservation of ownership previously mentioned in this paragraph until the moment when, in terms of fraction I of 15a. of the procedure included in this Circular, it receives from the Assigned Market Maker the Securities corresponding to the Swap celebrated as a result of the Auction in question.

88 (Third Section) OFFICIAL GAZETTE Monday, April 3, 2017

15a. Settlement Procedure.- On the settlement day of each Swap carried out by each Assigned Market Maker, the Bank of Mexico, in accordance with the authorization referred to in section 7 of the procedure included in this Circular, shall carry out the following:

I. Receive from each Assigned Market Maker the Securities corresponding to the Swap carried out as a result of the relevant Auction. The receipt referred to in this subsection shall be carried out through the free-of-payment transfer procedure of said Securities through the DALI, in terms of what is established in the Internal Regulations of INDEVAL. To this end, on the settlement day, the Bank of Mexico shall instruct INDEVAL to make a charge for the total amount of the Securities that each Assigned Market Maker must deliver to the Bank of Mexico from the proprietary securities account that INDEVAL holds for the Assigned Market Maker, as well as the simultaneous credit to the proprietary securities account that INDEVAL holds for the Bank of Mexico, and

II. Once the Securities have been received in terms of the previous subsection, the Bank of Mexico shall deliver to each Assigned Market Maker the Securities corresponding to the Swap carried out as a result of the relevant Auction. The delivery referred to in this subsection shall be carried out through the free-of-payment transfer procedure of said Securities through the DALI, in terms of what is established in the Internal Regulations of INDEVAL. To this end, on the same settlement day, the Bank of Mexico shall instruct INDEVAL to make a credit for the total amount of the Securities that it must deliver, in the proprietary securities account that INDEVAL holds for each Assigned Market Maker.

The total amount of the Securities that the Assigned Market Maker is obligated to deliver must be deposited in the proprietary securities account corresponding to it at INDEVAL, before the closing of DALI operations on the settlement day indicated in the call for bids.

In the event that there is a difference between the total amount of the Securities to be received by the Assigned Market Maker and the total amount of the Securities to be delivered by the Bank of Mexico, on the settlement day, the following operations shall be carried out:

I. When the total amount of the value corresponding to the Securities to be received by the Assigned Market Maker is less than the respective total amount of the Securities to be delivered by the Bank of Mexico, the Assigned Market Maker shall be obligated to pay the Bank of Mexico the amount in pesos, national currency, resulting from the difference between said amounts. The Bank of Mexico shall charge the equivalent to the amount resulting against the Assigned Market Maker in the Account that the Bank of Mexico itself holds for it, or

II. When the total amount of the value corresponding to the Securities to be received by the Assigned Market Maker is greater than the respective total amount of the Securities to be delivered by the Bank of Mexico, the Assigned Market Maker shall have the right to receive from the Bank of Mexico the amount resulting from the difference between said amounts. The Bank of Mexico shall credit the equivalent to the amount resulting in terms of this subsection in favor of the Assigned Market Maker in the Account that the Bank of Mexico itself holds for it.

16a. Calculation of the price for settlement.- The settlement referred to in section 15 of the procedure included in this Circular shall be carried out, for each type of Security, in accordance with the following:

A. In the case of CETE, its value shall correspond to the unit price without making modifications.

B. In the case of BONDE, the settlement must be carried out by adding to the unit price the accrued but unpaid interest, from the date of its issuance or last interest payment, as applicable, until the settlement date, according to the following formula (1):

I_dev = VN * (c / 100) * (d / 360)

Where: I_dev = Accrued interest in national currency or in UDI, as applicable. VN = Nominal value of the Security in national currency or in UDI, as applicable. d = Natural days elapsed between the date of issuance of the title or last interest payment, as applicable, and the settlement date. c = Annual interest rate of the Security, expressed in percentage terms and rounded to two decimal places.

For each bid assigned within the call for bids i, the Assigned Market Makers will receive the quantity of CETE or BONDE assigned in the Swap Ni and will deliver, in swap, to the Bank of Mexico the quantity of CETE or BONDE for a value equivalent to the result of Ni,j of series j requested. In this regard, Ni,j shall be determined by the following formula (2):

Ni,j = (Pi - I_dev,i) / (Pi,j - I_dev,i,j) * Ni

Where: Pi = Fixed price determined by the Bank of Mexico for the Security assigned that the Assigned Market Makers request in call for bids i (the price of CETE must be rounded to seven decimal places and that of BONDE to hundred-thousandths). I_dev,i = Amount of accrued but unpaid interest of the BONDE requested in the Swap by the Assigned Market Makers in call for bids i and calculated according to formula (1) above. The interest must be rounded to twelve decimal places. Not applicable in the case of CETE. Pi,j = Fixed price determined by the Bank of Mexico for the Security of series j that the Bank of Mexico receives in call for bids i (the price of CETE must be rounded to seven decimal places and that of BONDE to hundred-thousandths). I_dev,i,j = Amount of accrued but unpaid interest of the BONDE of series j received in the Swap by the Bank of Mexico and calculated according to formula (1). The interest must be rounded to twelve decimal places. Not applicable in the case of CETE. Ni = Quantity of Securities to be received by the Assigned Market Makers for each bid of call for bids i. Ni,j = Quantity of Securities of series j to be delivered by the Assigned Market Makers for each bid of call for bids i. It shall be truncated to the nearest lower integer.

17a. Default.- In the event that an Assigned Market Maker does not have in the proprietary account it maintains at INDEVAL the total amount of the Securities it must deliver in accordance with what is provided in the second paragraph of section 15 of the procedure included in this Circular, the Bank of Mexico may, without the need for a judicial declaration, carry out the Swap only for the amount of the Securities available in said account, for which the Bank of Mexico shall instruct INDEVAL to carry out the operations indicated below, up to the amount of the Securities that are deposited: (i) the charge of the corresponding Securities from the Assigned Market Maker's account and their simultaneous credit in the Bank of Mexico's account held by INDEVAL, and (ii) the credit of the other Securities subject to the Swap adjusted in accordance with this Circular in the respective securities account of said Assigned Market Maker. Likewise, the Bank of Mexico shall make the credit or charge of cash, national currency, equivalent to the difference of the total amount corresponding to the Securities subject to the Swap, in accordance with what is provided in the third paragraph of section 15 of the procedure included in this Circular, as applicable, in the Account that the Bank of Mexico itself holds for the Assigned Market Maker.

In the case referred to in the previous paragraph, the Assigned Market Maker in question shall pay the Bank of Mexico the equivalent to one percent of the total amount expressed at nominal value of the Securities that have not been delivered to the Bank of Mexico.

For the purposes of the foregoing, the Bank of Mexico shall charge, on the Business Day following the day of the default in question, in the Account that the Bank of Mexico holds for the Assigned Market Maker, the amount referred to in the previous paragraph, in accordance with the authorization referred to in section 7 of the procedure included in this Circular.

Without prejudice to the foregoing, the Bank of Mexico may disqualify the Assigned Market Maker in question from participating in the Auctions.

18a. Disposition of the Securities.- Assigned Market Makers must use the total amount, at nominal value, of the Securities they receive in the Swap carried out as a result of the relevant Auction, to fully liquidate one or several securities lending operations they have carried out with the Bank of Mexico in terms of the Office Document, which correspond to the same issuance as the Securities assigned in said Auction. The settlement of the securities lending operations carried out by the Assigned Market Makers in terms of what is provided in this paragraph shall be carried out on the Business Day corresponding to the settlement day of the Auction.

CHAPTER VI GENERAL ASPECTS

19a. Modifications to the Auction.- The Bank of Mexico may modify the dates, times, and deadlines mentioned in the calls for bids in the event that circumstances occur that prevent the strict observance of the procedure and other acts related to the relevant Auction. In such an event, the Bank of Mexico will inform the relevant modifications through the SIAC-BANXICO or through any other authorized electronic, computing, or telecommunications medium made known to the Market Makers by the Bank of Mexico.

ANNEX 1 MODEL OF AUTHORIZATION IN FAVOR OF THE BANK OF MEXICO TO MAKE CHARGES AND CREDITS IN THE ACCOUNTS OF CREDIT INSTITUTIONS AND SECURITIES COMPANIES THAT SUBMIT BIDS IN THE SWAP AUCTION FOR MARKET MAKERS

(LETTERHEAD OF THE CREDIT INSTITUTION OR SECURITIES COMPANY) Mexico City, on _____ of ___________________ of _________.

BANK OF MEXICO OPERATIONS MANAGEMENT DEPARTMENT 5 de Mayo Avenue number 6 Centro Neighborhood, Mexico City, C.P. 06059

Present.

(FULL NAME OF THE CREDIT INSTITUTION OR SECURITIES COMPANY) hereby authorizes and instructs irrevocably the Bank of Mexico to process on behalf and for the account of this same financial institution, in the proprietary securities account held by S.D. INDEVAL Institution for the Deposit of Securities, S.A. de C.V., the charges and credits necessary derived from the settlement of the Swap operations of Securities carried out by this society under the "Procedure that market makers and Udibonos market makers must follow to exercise the right to conduct government securities swap operations with the Bank of Mexico, in its capacity as financial agent of the Federal Government" issued by the Bank of Mexico through Circular 9/2017 in force today. For these purposes, this financial institution recognizes and accepts that the Bank of Mexico send to the referred securities deposit institution the corresponding instructions so that the respective transfers and records are effected.

Likewise, this financial institution hereby authorizes and instructs irrevocably that Bank of Mexico to make the necessary cash credits or charges derived from the settlement of the Swaps in the Account, as well as to make charges in the same Account, for any other amount that this society must cover by virtue of any non-compliance with the provisions of the aforementioned Procedure.

The authorizations and instruction referred to in this document may only be modified or revoked through written communication addressed to that Bank of Mexico and presented with, at least, three Business Days in advance of the date on which the respective modification or revocation is intended to take effect. It being understood that the modification or revocation will not be applicable with respect to the charges and credits resulting from the bids presented by this society prior to such communication taking effect.

Sincerely,

(FULL NAME OF THE CREDIT INSTITUTION OR SECURITIES COMPANY) (NAME, POSITION AND SIGNATURE OF PERSON(S) WITH AUTHORITY TO CARRY OUT PROPERTY ACTS)

c.c.p.: S.D. INDEVAL Institution for the Deposit of Securities, S.A. de C.V. For your information.

ANNEX 2 MODEL OF APPLICATION TO PARTICIPATE IN THE AUCTION FOR THE SWAP OF FIXED RATE FEDERAL GOVERNMENT DEVELOPMENT BONDS DENOMINATED IN PESOS (BONOS) FOR MARKET MAKERS

BANK OF MEXICO NATIONAL OPERATIONS DEPARTMENT 5 de Mayo Avenue number 6 Centro Neighborhood, Mexico City, C.P. 06059

Present.

APPLICATION FOR OWN ACCOUNT

Mexico City, on _____ of ___________________ of _________.

Full name of the credit institution or securities company: ____________________ Key of the credit institution or securities company at the Bank of Mexico: ______________________ Key of the BONDO issuance for which bids are submitted: ___________________ (MMDDYY)

Term in days of the BONDO issuance for which bids are submitted: _____________ days

BIDS: Total Amount of Issuance to be delivered in the swap pesos

This communication serves to confirm the bids presented to the Bank of Mexico today, by the credit institution or securities company on behalf of the person subscribing this same communication and which correspond to those referred to in the data preceding. Regarding this, the Bids included in this communication are mandatory for the Bidding Market Maker and irrevocable, will have the broadest effects that correspond by law, and imply the acceptance by the Bidding Market Maker itself to be subject to the "Procedure that market makers and Udibonos market makers must follow to exercise the right to conduct government securities swap operations with the Bank of Mexico, in its capacity as financial agent of the Federal Government", issued by the Bank of Mexico through Circular 9/2017 in force today, as well as to the other terms and conditions of the call for bids dated ___________ of ______ of _____. The terms included in this communication with a capital initial letter have the meanings assigned to them in the cited Procedure.

Sincerely, 1

(FULL NAME OF THE CREDIT INSTITUTION OR SECURITIES COMPANY) (NAME AND SIGNATURE OF AUTHORIZED OFFICIALS)

NOTE: Unused spaces must be cancelled. 1 This document must show the signature knowledge granted by the Bank of Mexico, so said signatures must be registered previously at the Bank of Mexico itself.

ANNEX 3 MODEL OF APPLICATION TO PARTICIPATE IN THE AUCTION FOR THE SWAP OF FIXED RATE FEDERAL GOVERNMENT DEVELOPMENT BONDS DENOMINATED IN INVESTMENT UNITS (UDIBONOS) FOR UDIBONOS MARKET MAKERS

BANK OF MEXICO NATIONAL OPERATIONS DEPARTMENT 5 de Mayo Avenue number 6 Centro Neighborhood, Mexico City, C.P. 06059

Present.

APPLICATION FOR OWN ACCOUNT

Mexico City, on _____ of ___________________ of _________.

Full name of the credit institution or securities company:

---

Key of the credit institution or securities company at the Bank of Mexico:

---

Key of the UDIBONO issuance for which bids are submitted: ____________________ (YYMMDD)

Term in days of the UDIBONO issuance for which bids are submitted: _____________ days

BIDS: Total Amount of Issuance to be delivered in the swap UDI

This communication serves to confirm the bids presented to the Bank of Mexico today, by the credit institution or securities company on behalf of the person subscribing this same communication and which correspond to those referred to in the data preceding. Regarding this, the Bids included in this communication are mandatory for this referred financial entity, in its capacity as Bidding Market Maker, and irrevocable, will have the broadest effects that correspond by law, and imply the acceptance by the Bidding Market Maker itself to be subject to the "Procedure that market makers and Udibonos market makers must follow to exercise the right to conduct government securities swap operations with the Bank of Mexico, in its capacity as financial agent of the Federal Government", issued by the Bank of Mexico through Circular 9/2017 in force today, as well as to the other terms and conditions of the call for bids dated ___________ of ______ of _____. The terms included in this communication with a capital initial letter have the meanings assigned to them in the cited Procedure.

Sincerely, 1

(FULL NAME OF THE CREDIT INSTITUTION OR SECURITIES COMPANY) (NAME AND SIGNATURE OF AUTHORIZED OFFICIALS)

NOTE: Unused spaces must be cancelled. 1 This document must show the signature knowledge granted by the Bank of Mexico, so said signatures must be registered previously at the Bank of Mexico itself.

ANNEX 4 MODEL OF APPLICATION TO PARTICIPATE IN THE AUCTION FOR THE SWAP OF CERTIFICATES OF THE FEDERAL TREASURY (CETE) FOR MARKET MAKERS

BANK OF MEXICO NATIONAL OPERATIONS DEPARTMENT 5 de Mayo Avenue number 6 Centro Neighborhood, Mexico City, C.P. 06059

Present.

APPLICATION FOR OWN ACCOUNT

Mexico City, on _____ of ___________________ of _________.

Full name of the credit institution or securities company:

---

Key of the credit institution or securities company at the Bank of Mexico:

---

Key of the CETE issuance for which bids are submitted: ________________ (YYMMDD)

Term in days of the CETE issuance for which bids are submitted: __________________________ days

BIDS: Total Amount of Issuance to be delivered in the swap pesos

This communication serves to confirm the bids presented to the Bank of Mexico today, by the credit institution or securities company on behalf of the person subscribing this same communication and which correspond to those referred to in the data preceding. Regarding this, the Bids included in this communication are mandatory for this referred financial entity, in its capacity as Bidding Market Maker and irrevocable, will have the broadest effects that correspond by law, and imply the acceptance by the Bidding Market Maker itself to be subject to the "Procedure that market makers and Udibonos market makers must follow to exercise the right to conduct government securities swap operations with the Bank of Mexico, in its capacity as financial agent of the Federal Government", issued by the Bank of Mexico through Circular 9/2017 in force today, as well as to the other terms and conditions of the call for bids dated ___________ of ______ of _____. The terms included in this communication with a capital initial letter have the meanings assigned to them in the cited Procedure.

Sincerely, 1

(FULL NAME OF THE CREDIT INSTITUTION OR SECURITIES COMPANY) (NAME AND SIGNATURE OF AUTHORIZED OFFICIALS)

NOTE: Unused spaces must be cancelled. 1 This document must show the signature knowledge granted by the Bank of Mexico, so said signatures must be registered previously at the Bank of Mexico itself.

TRANSITORY SINGLE.- This Circular shall enter into force on the Business Day following its publication in the Official Gazette of the Federation.

Mexico City, on March 30, 2017.- The General Director of Central Banking Operations, Jaime José Cortina Morfín.- Rubric.- The Director of Central Banking Dispositions, Mario Ladislao Tamez López Negrete.- Rubric.

For any queries regarding the content of this Circular, please contact the Department of Authorizations, Queries and Legal Control, at the phones (55) 5237-2308, (55) 5237-2317 or (55) 5237-2000, extension 3200.