Regulatory Alerts2024-06-07 | Circular 9/2024Added · Updated
Circular 9/2024 — Modifications to Circular 7/2023 (Exceptions for Swaps with 28-Day TIIE)
Effective January 1, 2025, financial entities, investment funds, general warehouse deposits, insurance institutions, and multipurpose financial societies are prohibited from using the 28-day National Interbank Equilibrium Interest Rate (TIIE) as the underlying asset for new derivative or standardized derivative operations. Exceptions allow the continued use of this rate for derivatives executed before January 1, 2025, until their maturity, as well as for swaps executed before January 1, 2026, with maturities on or before December 31, 2025, and for swaps exchanging the 28-day TIIE for the one-day TIIE (TIIE de Fondeo) executed before January 1, 2026, regardless of maturity date. This circular amends the third transitional provision of Circular 7/2023 to facilitate the orderly transition to reference rates based on actual transactions.
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