COMMODITY FUTURES TRADING COMMISSION

SUPPLEMENT S-1 to FORM FBOT

CLEARING ORGANIZATION SUPPLEMENT TO

FOREIGN BOARD OF TRADE APPLICATION FOR REGISTRATION
Asigna, Compensación y Liquidación

Name of clearing organization as specified in organizational documents

Paseo de la Reforma 255 Piso 2, Colonia Cuauhtémoc, Mexico D.F. 06500

Address of principal executive office

MexDer, Mercado Mexicano de Derivados, S.A. de C.V.

Name of the foreign board of trade on associated Form FBOT

 If this Supplement S-1 is accompanying a new application for registration, 

please complete in full and check here.

 If this Supplement S-1 is an amendment to a pending application for 

registration, or to a final application that resulted in the issuance of an Order 

of Registration, please list all items that are amended or otherwise updated and 

check here.

When appropriate, please attach additional page(s) containing a list and 

explanatory statement of amendment(s) or update(s).
REGISTERED DERIVATIVES CLEARING ORGANIZATIONS

If the clearing organization is registered with the Commission in good standing 

as a derivatives clearing organization (DCO), please indicate by checking here:

 If the clearing organization is registered with the Commission in good standing 

as a DCO, the clearing organization need not complete the remainder of the 

Supplement S-1.

GENERAL INFORMATION

1. Name under which the business of the clearing organization will be conducted, if 

different than name specified above:

2. List of principal office(s) where clearing organization activities are/will be conducted 

(please use multiple entries, when applicable):
Office (name and/or location):

Asigna, Compensación y Liquidación

Address:

Paseo de la Reforma 255 Piso 2, Colonia 

Cuauhtémoc, México D.F. 06500

Phone Number:

(5255) 5342-9000

Fax Number:

(5255) 5342-9903

Website Address:

http://www.asigna.com.mx/

3. Contact Information.

3a. Primary Contact for Supplement S-1 (i.e., the person authorized to receive 

Commission correspondence in connection with this Supplement S-1 and to whom questions 

regarding the submission should be directed):
Name:

Title:

Chief Executive Officer

Email Address:

Mailing Address:

Paseo de la Reforma 255, Col. 

Cuauhtémoc, México, D.F. C.P. 6500

Phone Number: (5255) 5342 9000

Fax Number: (5255) 5342 9903

3b. If different than above, primary contact at the clearing organization that is authorized 

to receive all forms of Commission correspondence:
Name:

Title:

Email Address:

Mailing Address:

525 W. Monroe

Chicago, IL 60661

Phone Number: 312-902-5494

Fax Number: 312-902-1061

BUSINESS ORGANIZATION

Describe organization history, including date and, if applicable, location of filing of original 

organizational documentation, and describe all substantial amendments or changes thereto. 

For example:

Asigna, Compensación y Liquidación is a trust and its and its constitution under the laws of 

Mexico was authorized by the Ministry of Finance on December 7, 1998, as evidenced by 

the legal execution of trust number F/30,430. The contents of the trust agreement have been 

modified from time to time.
SIGNATURES

By signing and submitting this Supplement S-1, the clearing organization agrees to and 

consents that the notice of any proceeding before the Commission in connection with the 

associated foreign board of trade’s application for registration or registration with the 

Commission may be given by sending such notice by certified mail or similar secured 

correspondence to the persons specified in sections 3a and 3b above.

___________________ [Name of the Clearing Organization] has duly caused this 

Supplement S-1 to be signed on its behalf by the undersigned, hereunto duly authorized, this 

_______ [Number] day of _______________________ [Month], ____________ [Year] 

_______.

_________________ [Name of the Clearing Organization] and the undersigned represent 

that all information and representations contained in this Supplement S-1 (and exhibits) are 

true, current, and complete. It is understood that all information, documentation, and exhibits 

are considered integral parts of this Supplement S-1. The submission of any amendment to 

a Supplement S-1 represents that all items and exhibits not so amended remain true, current, 

and complete as previously filed.
Signature of Chief Executive Officer (or functional equivalent), on behalf of the Clearing 

Organization:

Title:

Name of Clearing Organization:
1

EXHIBIT A – GENERAL INFORMATION AND DOCUMENTATION
2

EXHIBIT A-1

Attach, as Exhibit A-1, a description of the following for the clearing organization: Location, 

history, size, ownership and corporate structure, governance and committee structure, and 

current or anticipated presence of staff in the United States.

1. Location

Asigna’s principal business office is located at Paseo de la Reforma 255, Col. Cuauhtémoc, 

México, D.F. C.P. 6500. Asigna’s principal business telephone number is (5255) 5342 9000.

Asigna’s website is located at www.asigna.com.mx.

2. History

Asigna is a self-regulated entity that is authorized by the Mexican Ministry of Finance and Public 

Credit (Secretaria de Hacienda y Credito Publico, or “SHCP”) to do business as a clearing house 

of the derivatives market. The development of an exchange-listed derivatives market in Mexico 

was initiated by the Mexican Stock Exchange (“Bolsa Mexicana de Valores”) and, the Mexican 

Central Securities Depository (“S.D. Indeval”). Bolsa Mexicana de Valores financed the creation 

of the futures and options market that became MexDer, Mercado Mexicano de Derivados, S.A. de 

C.V. while S.D. Indeval and the four leading Mexican banks that were to become Asigna’s clearing 

members – Banamex Citigroup, BBVA Bancomer, ScotiaBank Inverlat, and Santander-Serfin –

assumed responsibility for the organization and initial financing of Asigna, Compensación y 

Liquidación (“Asigna”). The constitution of Asigna under the laws of México was authorized by 

Ministry of Finance, and MexDer began operations on December 15, 1998.

3. Size

Asigna clears only MexDer contracts. For 2010, MexDer had a total volume of 41,827,321 futures 

contracts and 768,254 options contracts. From January to July of 2011, MexDer’s had a total 

volume of 29,792,221 futures contracts and 168,327 option contracts. In the same period of 2012, 

MexDer total volume for futures grew to 32,248,738 contracts and total volume for options fell to 

766,178 contracts. 

Asigna’s open interest closed at 24 million contracts on December 2010, and managed 16.6 

thousand pesos as Margin Fund and 1.8 million pesos as Clearing Fund. In July 2012 this numbers 

equal to 26.3 million contracts of open interest and 20.7 thousand pesos as Margin Fund and 2.0 

in the Clearing Fund. 

4. Ownership

Currently, the Bolsa Mexicana de Valores owns approximately 90% of the fiduciary certificates 

of Asigna. Clearing members that are administration and payment trusts created by the largest 

established financial groups in Mexico –BBVA Bancomer, Santander and Scotiabank Inverlat –

own the other 10%.
3

5. Corporate Structure, Governance and Committee Structure

Details of Asigna’s internal organization and corporate governance are set forth in Asigna’s Trust 

Agreement (“Trust Agreement”). As required by applicable Mexican law, Asigna has additionally 

promulgated internal regulations (“Asigna’s Internal Regulations”) and a manual of policies and 

procedures (“Asigna’s Manual of Policies and Procedures”) that address the organization of the 

clearing house and govern its participants.

a. General Meeting of Shareholders (Board of Trustors)

The Board of Trustors, among other duties, is responsible for appointing members of Asigna’s 

Technical Committee.

b. Board of Directors (Technical Committee)

Asigna is managed by a Technical Committee that is elected by the Board of Trustors and 

comprised of representatives of its clearing members and MexDer, equity partners and independent 

members. The administration of Asigna’s operating functions, such as clearing and settling trades, 

investing resources and monitoring risk, are carried out through Asigna’s CEO, who is appointed 

by the Technical Committee.

c. Committees

The Technical Committee is supported by various subcommittees, whose role is to address and 

resolve matters described in the Prudential Provisions. The Technical Committee currently has 

appointed the following subcommittees: i) Audit; ii) Compliance and Ethics; iii) Discipline and 

Arbitration; iv) Admission and Risk Management; and v) Administration Subcommittees.

6. No U.S. Presence

Asigna has no offices in the U.S. and does not intend to open a U.S. office. Asigna’s website is 

located at www.asigna.com.mx. With the exception of the Asigna website, Asigna’s marketing 

activities in the U.S. are limited to (i) Asigna’s presence at industry events, such as the 

International Futures Industry Conference held annually in Boca Raton, Florida and (ii) occasional 

meetings between Asigna staff and U.S.-based industry participants for the purpose of describing 

the Mexican derivatives market.

Derived from the Order Routing Agreement executed between MexDer and CME, Asigna clears 

and settle all trades executed pursuant to such Agreement.

7. Anticipated Volume in U.S.

Attached please find a chart detailing the trading volume of MexDer from January 2012 through 

June 2012.
4

Product1

Volume 

from All 

Terminals2

Total Buy/Sell 

Side Volume Volume from U.S. Terminals

Percentage 

from U. S. 

Terminals7

(COLUMN 2 

X2)3 Buy Side4 Sell Side5 Total (4) +(5)6

28 day Interbank Equilibrium 

Interest Rate Futures 22,043,245 44,086,490

10 year Centrally Cleared Swap 2048 4096

2 year Centrally Cleared Swap 9,305 18,610

91 day Treasury Bill Certificate 

Futures 915,700 1,831,400

30 year Bond Futures 230,258 460,516

20 year Bond Futures 791,962 1,583,924 1,067 1,732 2,799 0.18%

10 year Bond Futures 925,702 1,851,404 3,994 4,080 8,074 0.44%

5 year Bond Futures 20,397 40,794 0.00%

3 year Bond Futures 181,824 363,648 69 69 138 0.04%

Mexican Stock Exchange Price 

and Quotations Index Futures 557,005 1,114,010 130,430 118,633 249,063 22.36%

Mexican Peso / U.S. Dollar 

Futures 4,860,971 9,721,942 385,433 419,980 805,413 8.28%

Mexican Peso / Euro Futures 11,535 23,070 0.00%

Options on Mexican Stock 

Exchange Price and Quotations 

Index Futures

24,682 49,364 6,641 5,871 12,512 25.35%

Mexican Peso / U.S. Dollar 

Options 270 540 0.00%

Total 30,574,904 61,149,808 527,634 550,365 1,077,999 1.76%

1 List each contract that is eligible to be traded by direct access from the U.S., including those contracts for which 

there was no trading volume during the reporting period.

2 Include the total volume worldwide on the electronic trading system for each listed contract and, in the bottom row, 

enter the total of such volume worldwide for all listed contracts.

3 Multiply Column 2 X 2 (this should represent the total electronic buy side plus the total sell side volume worldwide 

for each listed contract).

4 Include the total electronic buy side volume for each contract originating by direct access in the U.S.

5 Include the total electronic sell side volume for each contract originating by direct access in the U.S.

6 Add Columns 4 + 5 to represent the total electronic buy side and sell side volume for each contract originating by 

direct access in the U.S.

7 Divide Column 6 by Column 3 and multiply the result by 100 to determine the percentage of the total buy/sell side 

volume originating from the U.S.
5

EXHIBIT A-2

Articles of association, constitution, or other similar organizational documents.

Public deed number 7,823 dated on December 7, 1998, certifies the legal execution of the Trust 

number F/30,430, identified with the commercial name of Asigna, Compensación y Liquidación. 

The public deed is apostil, but it is not translated since the contents of the trust agreement have 

been modified from time to time. For this reason, an updated version of the correspondent trust 

agreement is presented herein.
6

EXHIBIT A-3

(1) Membership and participation agreements.

(2) Clearing agreements.

Asigna’s Trust Agreement provides for three categories of Trustors – Trustor “A”, “B” and “C”, 

as described in EXHIBIT B(1) below. Those entities wishing to become a Trustor must sign an

Adhesion Agreement. In the Adhesion Agreement, a trustor agrees to adhere to the Trust 

Agreement and to abide by the Mandatory Rules, Prudential Provisions and other self-regulatory 

rules of MexDer and the clearing house.
7

EXHIBIT A-4

The national statutes, laws and regulations governing the activities of the clearing 

organization and its members.

See the Mandatory Rules and Prudential Provisions attached to Exhibit A-5 of Form FBOT, above. 

An English translation of Asigna’s Internal Regulations is attached below to Exhibit A-5 of 

Supplement S-1. An English translation of Asigna’s Policies and Procedures Manual is attached 

herein.

ASIGNA 

Manual_VF.pdf
8

EXHIBIT A-5

The current rules, regulations, guidelines and bylaws of the clearing organization.

An English translation of Asigna’s Internal Regulations is attached herein.

ASIGNAInternal_Re

gulations_VF.pdf
9

EXHIBIT A-6

Evidence of the authorization, licensure or registration of the clearing organization pursuant 

to the regulatory regime in its home country jurisdiction(s) and a representation by its 

regulator(s) that it is in good regulatory standing in the capacity in which it is authorized, 

licensed or registered.

Autorización 

Asigna.pdf
10

EXHIBIT A-7

A summary of any disciplinary or enforcement actions or proceedings that have been 

brought against the clearing organization, or any of the senior officers thereof, in the past 

five years and the resolution of those actions or proceedings.

There have been no disciplinary or enforcement actions or proceedings brought against the clearing 

house, or any of the senior officers thereof, in the past five years.
11

EXHIBIT A-8

An undertaking by the chief executive officer(s) (or functional equivalent[s]) of the clearing 

organization to notify Commission staff promptly if any of the representations made in 

connection with or related to the foreign board of trade’s application for registration cease 

to be true or correct, or become incomplete or misleading.

CEO Undertaking
EXHIBIT B – MEMBERSHIP CRITERIA
EXHIBIT B(1)

A description of the categories of membership and participation in the clearing 

organization and the access and clearing privileges provided to each by the clearing 

organization.

In accordance with the Trust Agreement of the clearing house, the categories of Trustors of 

Asigna are:

• Trustor(s) “A” – Clearing members with participation in the minimum equity of the 

clearing house, by virtue of holding fiduciary rights’ certificates.

• Trustor(s) “B” – Individuals or entities that have received approval from the Ministry of 

Finance to participate in the equity of the clearing house by virtue of holding fiduciary 

rights’ certificates, but with the right to appoint members of the Technical Committee of 

the clearing house.

• Trustor(s) “C” – Clearing members without participation in the minimum equity of the 

Trust, who are not holders of fiduciary rights’ certificates and only make contributions to 

the clearing house for Margin Fund and the Clearing Fund.

In accordance with the Mandatory Rules, a Trustor “A” or “C,” may be approved as a clearing 

member. Trustor A and Trustor C participants may or may not be a member of MexDer. They 

are permitted to execute exchange-traded derivatives contracts, as well as to route orders for the 

execution of exchange-traded derivatives contracts listed in recognized foreign derivatives 

markets, provided that the foreign exchange has entered into an order routing agreement with a 

Mexican derivatives exchange. Recognized foreign derivatives markets are those belonging to 

the Technical Committee of the International Organization of Securities Commissions or those to 

which the Central Bank gives such character.

In accordance with Asigna’s Internal Regulations, the characteristics of the different types of 

clearing members are listed below:

• Proprietary Position clearing member – An entity whose purpose is to clear and settle 

only transactions on behalf of the credit institution or brokerage firm acting as trustor and 

trustee, and of other financial entities belonging to the same financial group as the credit 

institution or brokerage firm, or those carried out with resources of the trustor of a 

clearing member who is not a financial entity.

• Third-Party Position clearing member – An entity whose purpose is to clear and settle 

customer transactions, i.e., all those transactions that are not proprietary transactions.

• Integral clearing member – An entity whose purpose is to clear and settle proprietary and 

customer transactions.

Mandatory Rule recognized other member category of the Clearing House, namely brokers that 

manage global accounts1. These members must meet legal requirements contained in Chapter 

1 Article 1 of Asigna’s Internal Regulations define a global account as the account managed by a Broker or Clearing 

Member, in which transactions for one or more Clients are recorded, according to individual and anonymous 

instructions.
20110301 Version

Two Bis of Asigna’s Internal Regulations and must be admitted by its Technical Committee and 

MexDer’s Board of Directors.
EXHIBIT B(2)

A description of all requirements for each category of membership and participation on the 

trading system and the manner in which members and other participants are required to 

demonstrate their compliance with these requirements. The description should include, 

but not be limited to, the following: 

(i) Professional Qualification. A description of the specific professional requirements, 

qualifications, and/or competencies required of members or other participants and/or their 

staff and a description of the process by which the clearing organization confirms 

compliance with such requirements.

Clearing members and brokers that manage global accounts must accredit its personnel with

MexDer. Clearing Member’s and Broker’s that manage global accounts must maintain at least 

one person to serve as account manager and a person as risk manager. An alternative individual 

must also be named for each position. Such persons must have a certificate issued by the 

certifying institution, which is a self-regulatory body recognized by MexDer (Association of 

Securities Brokerage Firms (“AMIB”), FINRA, NFA, MEFF, EUREX) to certify the personnel. 

Such persons must also certify that they will be bound to comply with the standards and other 

provisions issued by the financial authorities and by the clearing house, as well as to fulfill the 

resolutions of the Technical Committee or the subcommittees of the clearing house. See Form 

FBOT Exhibit B(2)(i) where accreditation is detailed.

Notwithstanding the foregoing, at the request of the clearing house, the Exchange will revoke the 

accreditation of personnel of the clearing members and brokers that manage global accounts 

when they fail to comply with any provision of Asigna’s Internal Regulations or Asigna’s 

Manual of Policies and Procedures.

(ii) Authorization, Licensure and Registration. A description of any regulatory or selfregulatory authorization, licensure or registration requirements that the clearing 

organization imposes upon, or enforces against, its members and other participants 

including, but not limited to any authorization, licensure or registration requirements 

imposed by the regulatory regime/authority in the home country jurisdiction(s) of the 

clearing organization, and a description of the process by which the clearing organization 

confirms compliance with such requirements.

Clearing members provide notice of the Exchange and clearing house approvals to the Ministry 

of Finance as well as the following documentation: 

• A general business plan and the policies and procedures of the member; 

• A description of the management and risk control systems; and 

• Drafts of the contracts that the clearing member will use with its clients for exchangetraded derivatives, as well as any other information that the Ministry of Finance deems 

appropriate.
The Ministry of Finance, after hearing the opinion of the CNBV and the Central Bank, reserves 

the right to veto the aforementioned approvals, when it considers that the trustors, or the 

members of the technical committee do not have sufficient technical or moral qualities for the 

performance of their duties, or when the approval process has not been adjusted to the internal 

regulations of the Exchange and/or the clearing house. If the Ministry of Finance does not 

exercise its right of veto within 90 calendar days after the clearing member submits the approvals 

and the documentation referenced above, the respective trust may begin operations as a clearing 

member.

In addition to the aforementioned requirements, clearing members must submit to the clearing 

house:

• Annual financial statements audited by an independent public accountant for the last 

three years of the company(ies) that will contribute to the minimum capital of the

clearing member;

• Monthly financial statements for the three months immediately preceding the filing of the 

application of the company(ies) that will contribute to the minimum capital of the

clearing member; 

• Names, addresses, email addresses and phone numbers of the persons who will be 

responsible persons and substitutes for the duties of risk manager and account manager; 

• Details concerning the account management system; 

• A contingency plan for systems and communications failures.

Applications for clearing members are provided to a group designated by the Admission and 

Risk Management Subcommittee. Once the applications have been evaluated, the group will 

issue a compliance report to Subcommittee. Once the compliance report has been received by 

the Admission and Risk Management Subcommittee, its members will evaluate it and present a 

recommendation to the Technical Committee on whether to approve or not the admission of the 

applicant. The Technical Committee will grant or deny approval as clearing member.
EXHIBIT B(2)(iii)

A description of the following:

(A) The financial resource requirements, standards, guides or thresholds required of 

members and other participants.

The Mandatory Rules additionally establish minimum financial requirements for clearing 

member trusts. A proprietary position clearing member – or, more precisely, a proprietary 

position payment and administration trust – must at all times maintain a minimum equity in 

Mexican Pesos equivalent to the greater of 2,500,000 UDIs (approximately US$880,000) or four 

percent of the total of all margins maintained by that clearing member with Asigna. Clearing 

members that settle futures or options contracts for customers or other third parties (a third-party 

position payment and administration trust) must at all times maintain a minimum equity equal to 

the greater of the equivalent in Mexican Pesos of 5,000,000 UDIs (approximately US$1,750,000) 

or eight percent of the total of all margins maintained by that clearing member with Asigna.

 

In the case of clearing members that settle exchange-traded derivative contracts executed on 

behalf of clients and themselves, the minimum equity required is the greater of: 

• the equivalent in national currency of five million Investment Units (approximately U.S. 

$1, 750,000); or 

• the sum of four percent (4%) of all margins that the clearing member maintains in the

clearing house for each proprietary open contract and eight percent (8%) of all margins

that the clearing member maintains in the clearing house for each third-party open 

contract.

Clearing members who hold proprietary trades and third-party trades should separate their 

equity, distinguishing the portion for proprietary trading and for third-party trading.

One hundred percent (100%) of a clearing member’s minimum equity must be contributed in 

cash, but may be invested in short-term bank deposits, government securities maturing in less 

than 90 days or repurchase agreements on those securities maturing in less than 90 days. In 

addition, up to thirty percent (30%) of that equity and any excess may be invested in MexDer 

stock, Asigna “trust rights certificates” and any other assets that may be approved by the 

financial authorities (SHCP, CNBV and Central Bank).

The contributions made by the clearing member to the Margin Fund and to the Clearing Fund 

and the Excess Margins will not count as minimum equity.

As for the brokers that manage Global Accounts, they must have, at all times, a minimum capital 

of at least 1,000,000 UDIs (approximately US$350,000). The aforementioned capital shall be 

invested in bank demand deposits, government securities with maturities of less than 90 days or 

repurchases of such securities at that period. The investments made by the broker into the 

Exchange’s capital will count as part of the aforementioned capital.
(B) The manner in which the clearing organization evaluates the financial 

resources/holdings of its members or participants.

The clearing house performs a daily review of the minimum capital of its members by 

monitoring that the amounts the clearing members have deposited as margins correspond with 

the amount required according to their positions. In addition, the risk management area performs 

stress tests on a monthly basis. These tests stress all of the underlying assets on which the 

members have open contracts to determine if the amounts the members have on deposit with the 

clearing house and the safety net are sufficient to address an abnormal situation in the market.

(C) The process by which applicants for clearing membership or participation

demonstrate compliance with financial requirements including:

(1) CO Working capital and collateral requirements, and

(2) Risk management mechanisms.

At the end of each trading session, risk management computes the amount of margins that

clearing members owe to Asigna. If during a trading session there exists highly volatile market 

conditions, Asigna has the right to issue intraday margin calls if the market moves against any of 

a clearing member’s clients or against the clearing member itself.
8

EXHIBIT B(2)(iv)

Fit and Proper Standards. A description of any other ways in which the clearing 

organization ensures that potential members/other participants meet fit and proper 

standards.

The clearing house monitors members through the following means:

• Conducting audits of the clearing members and brokers that manage global accounts, to 

verify that they comply with the requirements established in Asigna’s Internal 

Regulations, the Asigna Manual of Policies and Procedures and the applicable regulations 

and in their general functional plans and policies, operating procedures, risk control and 

liquidity manuals.

• Information requests consisting of the request for documents related to the activities of 

the clearing members and brokers that manage Global Accounts, which must be provided 

with the periodicity and in the terms established by Asigna. Such information requests 

allow the clearing house to verify compliance with the applicable regulations.

• Monitoring of Asigna’s members through the clearing and settling electronic system. 

• Valuation of risks and extreme scenarios.

• Any other system or means determined by the Technical Committee.

Clearing members and brokers must provide any documentation contained in the automated 

systems for processing and storing data that Asigna considers necessary (whether they be 

magnetic files, microfilmed documents, optical lookup procedures or any other type) as well as 

any related technical procedures.

Asigna will keep, for each trading day, a trading log in which all relevant facts of each day will 

be recorded. This log will describe the problems that arise, the causes (when they are known), 

the actions taken and the results obtained. In addition, Asigna will monitor on each trading day 

the link of its systems with MexDer’s trading system, clearing members systems and, where 

appropriate, broker’s systems.
EXHIBIT C – BOARD AND/OR COMMITTEE MEMBERSHIP
EXHIBIT C(1)

A description of the requirements applicable to membership on the governing board and 

significant committees of the clearing organization.

Technical Committee

The Technical Committee is comprised of one director from MexDer’s Board of 

Directors, clearing members, and independents.

To become a member of the Technical committee, a person must meet the following 

conditions:

• Mexican resident.

• At least five years service in a high-level, decision-making position where it was 

necessary to have knowledge of and experience in financial and administrative 

matters.

A member of the Technical Committee may not have:

o Pending litigation with the Exchange or with the clearing house.

o A conviction by final judgment for a crime against property.

o A suspension, bar or other such limitation from the performance of any 

employment, post or commission in the public service or in the Mexican 

financial system.

o Declared bankruptcy or insolvency.

o Performs functions of inspection and supervision of the Exchange or the

clearing house or any other role regulating exchanges.

o A conflict of interest or an opposite interest to that of the Exchange or the 

clearing house.

Independents on the Technical Committee may not have ownership stakes in brokers, 

clearing members or financial institutions and may not hold a position at any such firm 

other than in an independent capacity.

Subcommittees

The Technical Committee is supported by five subcommittees in his duties:

1. Administration Subcommittee. This subcommittee oversees the clearing and 

settlement processes of the clearing members. In this role, the Subcommittee 
proposes necessary procedures to help ensure that Asigna operates efficiently.

This Subcommittee must have at least two thirds of its members appointed by the

clearing members.

2. Auditing Subcommittee. This subcommittee monitors Asigna’s compliance with 

appropriate regulations. This subcommittee must be composed of at least two 

thirds of independents and the rest will be appointed by the clearing members.

3. Regulatory and Ethics Subcommittee. This subcommittee is responsible for 

issuing operational, prudential and self-regulatory standards in accordance with 

the minimum guidelines established by the CNBV. This subcommittee will be 

formed with at least two thirds of persons appointed by the clearing members.

Members of this Subcommittee may not be members of the Disciplinary 

Measures and Arbitration Subcommittee.

4. Admission and Risk Management Subcommittee. This subcommittee is 

responsible for determining, implementing and monitoring the integrity and 

proper functioning of the safety net and the risk management system. This 

subcommittee will be formed with at least two thirds of persons appointed by the

clearing members.

5. Disciplinary Measures and Arbitration Subcommittee. This subcommittee is 

responsible for implementing some disciplinary measures for violations of 

Asigna’s self regulatory standards. This subcommittee will be formed with at 

least two thirds of people who have independence from both the trustors and the

clearing members.
EXHIBIT C(2)

A description of how the clearing organization ensures that potential governing board and 

committee members meet these standards.

General rules for the integration of files containing the information that demonstrates compliance 

with the requirements to be met by persons who hold positions, posts or commissions in financial 

institutions” (“General Rules”) oblige Asigna to verify that the Technical Committee’s members 

are in compliance with the requirements regarding satisfactory credit history, credit eligibility 

and integrity, as well as the absence of legal impediments for members of the Technical 

Committee to continue in their duties. In addition, Asigna must establish internal controls to 

verify that the actions of the persons designated as members of the Technical Committee are 

ethical, professional and with full respect for the law. Asigna must inform the CNBV of the 

appointment of the Committee within five business days. Further, Asigna must inform CNBV of 

Asigna’s compliance with the General Rules by January 15 of each year.

To verify the qualifications of Committee members, Asigna takes into account their knowledge 

of the Exchange and the knowledge required for Committee duties. Asigna takes into account 

education and work experience of members in its evaluation. Asigna may also take into account 

any certifications issued by self-regulatory organizations recognized by the CNBV.

With regard to the verification of experience in financial, legal or administrative matters and, 

where appropriate, professional prestige, the clearing house will consider the member’s 

performance in high-level, decision-making positions for at least five years. Satisfactory credit 

history or credit eligibility is verified through a report provided by credit information companies 

containing a history of at least five years preceding the date on which the person will hold the 

office. In each case, the clearing house must obtain the consent of the person to be appointed as 

member in order to request a credit history report.

Prior to the appointment of an independent member of the Technical Committee, the clearing 

house must obtain a letter from the applicant stating under oath that he/she: (a) will comply with 

the independence requirements of the laws relating to the Mexican financial system and (b) does 

not maintain employment or business with the external auditor of the clearing house.
EXHIBIT C(3)

A description of the provisions to minimize and resolve conflicts of interest with respect to 

membership on the governing board and significant committees of the foreign board of 

trade.

The clearing house requires a statement from members of the Technical Committee that the 

member does not have conflicts of interest or opposite interests to those of the clearing house. 

Additionally, the Trust Agreement states that when a member of the Technical Committee has an

opposing interest to the clearing house on any matter which is to be addressed by the Technical 

Committee, he should disclose it to the other members and recuse himself from any 

consideration of the matter. Otherwise, the member will be liable for any damages caused to the 

Trust.

With regard to the members of the subcommittees of the clearing house, the Trust Agreement

and the rules of the clearing house state, that members must disclose a conflict of interest to the 

other members and refrain from any deliberation and resolution. Otherwise, members will be 

liable for any damages caused to Asigna.
6

EXHIBIT C(4)

A description of the clearing organization’s rules with respect to the disclosure of material 

non-public information obtained as a result of a member’s on the governing board or on a 

significant committee.

Article 1301.00 of Asigna’s Internal Regulations establish that members of the Technical 

Committee and its subcommittees are obligated to maintain strict confidentiality with respect to 

any sensitive information provided to the clearing house by the clearing members, brokers who

manage global accounts and the Exchange. Additionally, the rules of the subcommittees 

emphasize that members and guests must maintain confidentiality regarding the matters 

discussed in the meetings.
EXHIBIT D – SETTLEMENT AND CLEARING
EXHIBIT D-1

A description of the clearing and settlement systems, including, but not limited to, the 

manner in which such systems interface with the foreign board of trade’s trading system and 

its members and other participants.

Asigna uses it as its central system for clearing and settlement on a real-time continuous basis.

MexDer’s trading engines transmit trade data on a real-time basis. The trade data includes market 

data to clearing members and the clearing house’s risk system. The affected clearing members, in 

turn, are required to identify the relevant transactions as either an “open” or “close” within 10 

minutes and retransmit the information to Asigna’s central clearing System with the appropriate 

open/close code. Clearing members are also required to provide the account number in order to 

assign the trade and update previous open positions, if any, in the corresponding accountsubaccount. MexDer determines and transmits settlement prices for all contracts within forty-five

minutes after the market close to clearing members and the clearing house.

Asigna ́s clearing system clears futures contracts, options contracts and futures options contracts, 

both European and American style. 

Daily settlements – including premium trading amounts, mark-to-market open positions, “profit & 

loss” (variation margins), deposits and returns of initial margin (risk margin, spread margin, 

delivery margin, premium margin), options exercises (intrinsic value for cash settled options 

contracts), swaps coupons, interest, fees and contributions to the Clearing Fund – are effected

between 9:00 a.m. and 11:00 a.m. each business day through the Interbank Electronic Payment 

System administered by the Central Bank. Asigna also uses the Interbank Electronic Payment 

System to administer intraday margin calls, which must be paid in cash within one hour.

Physical settlement contracts are determined by the clearing system. Options contracts exercises 

are randomly assigned among short positions. Bonds delivery is assigned quarterly among long 

positions following a first-in, first-out process. Futures options exercises generate futures 

positions for both long and short positions.

The clearing system also handles collaterals (equity, national and US government debt, bonds, and 

currencies, among others) which cover margin requirements.

Asigna uses the Theoretical Intermarket Margin System (“TIMS”) to calculate margins on 

portfolios of Futures and Options contracts to a 99% confidence level. Asigna uses the Cox Ross 

Rubinstein Option pricing model to generate theoretical values and TIMS to calculate margin 

requirements based on the simulation of movements in the prices of underlying assets, taking into 

account, among other things, maximum expected price changes, spread positions and delivery 

requirements. TIMS accordingly calculates the maximum expected variance (worst case scenario) 

using five upside prices and five downside prices taking into account the price and volatility of the 

underlying asset, the risk-free rate, term to maturity and, where applicable, the amount of any 

dividends or interest payments.
Asigna’s risk control systems as well as clearing members’ back office systems both use the same 

methodology described above.
EXHIBIT D-2

A certification, signed by the chief executive offer (or functional equivalent) of the clearing 

organization, that the clearing system observes (1) the current Recommendations for Central 

Counterparties that have been issued jointly by the Committee on Payment and Settlement 

Systems and the Technical Committee of the International Organization of Securities 

Commissions, as updated, revised or otherwise amended, or (2) successor standards, 

principles and guidance for central counterparties or financial market infrastructures 

adopted jointly by the Committee on Payment and Settlement Systems or the International 

Organization of Securities Commissions (RCCPs).
5

EXHIBIT D-3

A detailed description of the manner in which the clearing organization observes each of the 

RCCPs or successor standards and documentation supporting the representations made, 

including any relevant rules or written policies or procedures of the clearing organization. 

Each RCCP should be addressed separately within the exhibit.

See attached Asigna Assessment of Compliance to CPSS-IOSCO Recommendations for Central 

Counterparties.

Please consider Asigna’s PFMIs self-assessment.
1

EXHIBIT E – THE REGULATORY REGIME GOVERNING THE CLEARING 

ORGANIZATION IN ITS HOME COUNTRY OR COUNTRIES
2

EXHIBIT E

(1) A description of the regulatory regime/authority’s structure, resources, staff and 

scope of authority.

The Ministry of Finance, the Central Bank and the CNBV are responsible for the stability of the 

Mexican financial system and national economy. These authorities jointly issued the Mandatory 

Rules, which regulate the participants of the market for exchange-traded derivatives contracts. 

In addition, CNBV (considering the opinions of Ministry of Finance and the Central Bank) 

issued the Prudential Provisions, which regulate the trading activities of participants of the 

market for exchange-traded derivatives contracts and which have the objective of preserving 

liquidity, solvency and market stability.

The above-mentioned legal regulations grant the clearing house the power to create a selfregulatory framework, which means that the clearing house has the authority to supervise and 

sanction its members – clearing members and global accounts managers. The powers of the 

clearing house, as well as the guidance that it should observe in the execution of its settlement 

and clearing functions, are contained in Asigna’s Internal Regulations and the Policies and 

Processes Manual. Other provisions contained in Asigna’s Internal Regulations are rights and 

duties of clearing members and Global Account Managers and the clearing house’s ability to 

supervise and sanction any infringement of the applicable regulation.

(2) The regulatory regime/authority’s authorizing statutes, including the source of its 

authority to supervise the clearing organization.

The following regulations grant powers to the Ministry of Finance, the Central Bank and the 

CNBV to supervise the clearing house:

• Ley Orgánica de la Administración Pública Federal (Federal Public Administración 

Law).

• Ley de la Comisión Nacional Bancaria y de Valores. (National Banking and Securities 

Commission Law).

• Ley del Banco de México. (Central Bank Law).

• Reglamento Interior de la Secretaría de Hacienda y Crédito Público (Ministry of Finance 

and Credit Public Internal Regulations).

• Reglamento Interior de la Comisión Nacional Bancaria y de Valores (National Banking 

and Securities Commission Law).

• Reglamento Interior del Banco de México (Central Bank Internal Regulations).

• Securities Market Law.

• Circular 4/2012 Reglas para la realización de operaciones derivadas (Execution of 

derivatives transactions rules.
• Circular 1/2005 Reglas a las que deberán sujetarse las instituciones de crédito, casa de 

bolsa, instituciones de seguros, instituciones de fianzas y sociedades financieras de objeto 

limitado y la financiera rural, en las operaciones de fideicomiso (Applicable rules to 

credit institutions, brokerage firms, insurance companies, surety companies and limited 

object financial entities and rural financial entity in the trading of trust transactions.

• The Mandatory Rules, which regulate the participants of the market for exchange-traded 

derivatives contracts.

• The Prudential Provisions, which regulate the trading activities of participants of the 

market for exchange-traded derivatives contracts.

• General rules for demonstrating compliance with the requirements to be met by persons 

who hold positions, posts or commissions in financial institutions.

(3) A description of and, where applicable, copies of the laws, rules, regulations and 

policies applicable to:1

(i) The authorization, licensure or registration of the clearing 

organization.

In accordance with the Third and the Forty-Third Mandatory Rules (the “Rules” are delivered as 

part of Exhibit A-4), to constitute a clearing house, a written application must be submitted to the 

Ministry of Finance. The Ministry of Finance grants permission at its discretion after hearing the 

opinion of the CNBV and the Central Bank.

In accordance with the Seventeenth Mandatory Rule, the application must be accompanied by 

the following documentation:

• A draft of the trust agreement for the clearing house.

• A draft f the Internal regulations of the clearing house.

• A description of the mechanisms that will be used to perform the clearing and settlement 

of trades as well as the receipt and delivery of margins and daily settlement payments.

• A summary of the project of the audit programs that will apply to the clearing members, 

and mechanisms for monitoring the financial conditions of such clearing members.

• The measures to be taken in case of default or bankruptcy of one or more of the clearing 

members, designing a safety net for such purposes.

• Policies and operating procedures manuals, management and risk control systems, and 

valuation methods to measure contributions.

1

 To the extent that any such laws, rules, regulations or policies were provided as part of Exhibit A-4, they need not 

be duplicated. They may be cross-referenced.
• Draft of the contract governing trades between the clearing house and the clearing 

members and the contracts that will be used for the execution of exchange-traded 

derivatives contracts.

In addition, clearing members who are attempting to form a clearing house must submit with 

their application the policies and procedures to address potential conflicts of interest that might 

arise in the conduct of its operations as clearing members and as trustees of the clearing house.

(ii) The financial resource requirements applicable to the 

authorization, licensure or registration of the clearing organization and the 

continued operations thereof.

According to the Nineteenth Mandatory Rule, the assets of the clearing house must be composed 

of minimum equity for the Contributions Fund and Compensation Fund. The minimum equity 

must be the national currency equivalent to 15,000,000 UDIs (approximately US$5,290,000), 

which must be provided in cash and must stay invested in bank deposits, government bonds with 

maturities less than 90 days, or repos with the same term on such securities. Nevertheless, up to 

10% of the minimum capital and its surplus may be invested in other assets approved by the 

authorities.

(iii) The regulatory regime/authority’s program for the ongoing 

supervision and oversight of the clearing organization and the enforcement 

of its clearing rules.

The Regulatory Regime 

There are two regulations that govern the clearing houses:

• Mandatory Rules to which the market participants of the exchange traded contract 

derivatives must be subject to.

• Prudential Provisions concerning the transactions of market participants of exchangetraded contract derivatives.

As stated above, both regulations contain the general operating rules applicable to the clearing 

house, such as minimum requirements for financial resources, a minimum of systems and 

controls for the provision of service, the delimitation of the functions of the clearing house, its 

main obligations towards its members, the basic rules for the establishment of a network of 

financial safeguards and powers of the Financial Authorities with respect to the clearing house.

As part of the obligations of the clearing house (as provided in the Twentieth Mandatory Rule, 

subsection (o), paragraph 2), the clearing house must have a committee that issues operational, 

prudential and self-regulatory standards within the minimum guidelines established by the 

CNBV. As well, the clearing house must have a committee to implement the appropriate 

disciplinary actions for breaches of these standards.
Since the beginning of its operations, the clearing house has issued Asigna’s Internal Regulations 

and a Manual of Policies and Procedures. These documents contain the set of standards which 

establish in detail the obligations and powers of the clearing house; the operational standards; the 

applicable procedures for the determination of margins, clearing and settlement; the description 

of sanctions for infringements of the standards and procedures to apply disciplinary sanctions; 

and the details of the process for the implementation of the resources that constitute the network 

of financial safeguards in case of breaches of obligations to deliver securities or cash. It is 

important to note that, despite the self-regulatory nature of these standards, the standards are 

vetted through an approval process by the Financial Authorities.

With respect to risk management, the Technical Committee issues a set of decisions that serve to 

implement and monitor the integrity and proper functioning of the safety net and the risk 

management system and that have a direct impact on the establishment of guidelines for 

investing the resources of the clearing house, the determination and monitoring of the guarantees 

required to the participants and the establishment of operating limits.

Other provisions that are relevant to the clearing house are:

• MexDer’s Internal Regulations and MexDer’s Manual of Policies and Procedures, which 

also contain provisions that affect the clearing house.

• The Trust Agreement.

• Taxes provisions governing the clearing house’s performance and the Code of Ethics to 

which it adheres.

Finally, the Third Prudential Provision establishes the supplementary legal regime of the clearing 

house, which includes commercial law, banking, commercial and mercantile practices, the Civil 

Code for Mexico City and the Federal Civil Procedure Code.

Oversight Program

The Thirty-Ninth Mandatory Rule establishes the authority of the CNBV over the clearing house. 

The CNBV’s powers include the following:

• The issuance of prudential rules designed to preserve the liquidity, solvency and stability 

of the derivatives contracts market.

• The power to request and review books and records generated by the market participants 

in transactions executed both in the domestic market and, where appropriate, in 

recognized foreign derivatives markets.

These powers complement the one contained in the Fifty-Ninth Prudential Provision. If 

exchange-traded derivatives contracts are not executed in terms of the provisions applicable to 

them, or if there are irregularities of any kind in the brokers, clearing members, clearing houses 

and exchanges that affect their stability or solvency or endanger the interests of the public or its 

creditors, the Fifty-Ninth Prudential Provision empowers the CNBV to: (a) order the Exchange 

and the clearing house to adopt measures to normalize the situation of the broker, clearing 
member or client in question; (b) instruct the Exchange to suspend the irregular transactions and 

order the clearing house to proceed with the transfer or settlement of the exchange-traded 

derivatives contracts; and/or (c) designate the persons who will substitute the Board or the 

Technical Committee and who will take charge of the Exchange, clearing house, broker or 

clearing member, as appropriate.

Because of the self-regulatory regime of the Exchange and the clearing house (as provided by the 

Twelfth Prudential Provision, among others), the Exchange has supervisory powers over the 

clearing house, particularly with respect to the execution of transactions with exchange-traded 

derivatives contracts, as well as the monitoring of the clearing and settlement of such contracts. 

The Exchange must have a continuous and systematic program of action so that the Mandatory 

Rules, the Prudential Provisions and the self-regulatory standards issued by the Exchange are 

properly observed. Pursuant to the Eleventh Prudential Provision, the aforementioned power is 

framed within the specific powers and functions established in Chapter VI (Surveillance) of 

MexDer’s Internal Regulations, which contains rules relating to the guidelines for carrying out 

the monitoring and auditing programs of brokers, clearing members and the clearing house.

In addition to the aforementioned, the Prudential Provisions contemplate a Compliance Officer 

who is responsible for ensuring that the Exchange and clearing house, as well as the brokers and 

clearing members comply with the regulations applicable to the market. Among other powers of 

the Compliance Officer, the Eighth Prudential Provision establishes the power of monitoring the 

observance of the Mandatory Rules, Prudential Provisions, self-regulatory standards issued by 

the Exchange and other provisions issued by the Financial Authorities that are applicable to the 

market.

The clearing house is overseen by the CNBV. The clearing house was inspected by the CNBV 

in the years 2008, 2010, and recently during 2012. The inspection visits included a review of the 

technology used by the clearing house, its operational procedures (including margin calls, 

clearing and settlement), and the review and validation of compliance with the internal criteria 

for risk management.

Meanwhile, over the past three years, the Compliance Office has performed its oversight duties. 

In 2010, the Compliance Office’s audit plan incorporated a quarterly review for compliance 

issues in the areas of Treasury, Operations and Risk Management. The main items of the 

supervision were the review of the processes of settlement at expiration of futures contracts on 

Mexican bonds and on the dollar, management of securities received as collateral, listing of new 

series on MexDer, analysis of clearing members’ capital, follow-up of position limits, 

extraordinary settlements, required letters to certify hedging positions and certification of 

personnel.

Additionally, the Compliance Office implements random reviews to validate the follow-up 

activities of the clearing house for validating the minimum capital resources of clearing 

members, monitoring position limits and compliance with the investment guidance of the 

guarantee funds and the capital of Asigna.

Enforcement of its Clearing Rules
The clearing house is endowed with legal tools to enforce the rules relating to the clearing and 

settlement even in difficult or controversial situations.

With respect to the First Mandatory Rule, the clearing house is a trust that seeks to clear and 

settle exchange-traded derivatives contracts and to act as counterparty in each transaction carried 

out on the Exchange, which implies that the resources it receives constitute a completely separate 

equity from those who constitute margins.

Meanwhile, the Nineteenth Mandatory Rule provides that the equity of the clearing house is 

constituted by at least the minimum equity, the Contributions Fund and the Clearing Fund. The 

Contributions Fund is integrated with the margins provided by the clearing members to the 

clearing house for each open contract, and the Clearing Fund is integrated with additional 

resources to the margins that the clearing house requests of the clearing members for the 

equivalent to 10 percent of such margins.

From the legal point of view, because of the contents of the Mandatory Rules and the Trust 

Agreement, the clearing house has full control over the resources that it receives to cover 

possible defaults. The clearing house has the ability to exercise its powers of enforcement of the 

rules relating to the clearing and the settlement and to apply the resources contained in the 

clearing house’s own equity without an adjudication of property process. Moreover, the 

regulation of the clearing house also contains disciplinary rules that correspond to violations of 

procedures and schedules of the processes of clearing and settlement of the trades.

Furthermore, each clearing member of the clearing house is bound by the clearing house’s Trust 

Agreement. Therefore, clearing members are subject to compliance with the rules and 

regulations concerning the clearing and the settlement based not only on the Mandatory Rules 

and Prudential Provisions but also on their status as trustors and beneficiaries of the clearing 

house.

(iv) The extent to which the current RCCPs are used or applied by 

the regulatory regime/authority in its supervision and oversight of the 

clearing organization or are incorporated into its rules and regulations and 

the extent to which the regulatory regime/authority reviews the clearing 

systems for compliance therewith.

Recommendation 1.- Legal Risk.

Market participants of exchange-traded derivatives contracts are subject to the Mandatory Rules, 

which empower the CNBV to issue prudential regulations designed to preserve liquidity, 

solvency and stability in the market. The Mandatory Rules also empower the CNBV to monitor 

the market participants.

Recommendation 2.- Participation Requirements.

Market participants of exchange-traded derivatives contracts are subject to the Prudential 

Provisions. The Prudential Provisions provide that the CNBV (by means of general regulations) 
will indicate: (i) the basis for approval of the monthly financial statements and annual general 

balance sheet of the Exchange, brokers, clearing members, and the clearing house by the Board 

or Technical Committee; and (ii) the applicable procedure for their review by the CNBV. The 

Mandatory Rules empower the CNBV to suspend or exclude a clearing member when it is 

involved in transactions that do not fulfill the terms of the applicable provisions.

Recommendation 3.- Measurement and Management of Credit Exposures.

Prudential Provisions state that the CCP, through its Technical Committee and in conjunction 

with the Derivatives Exchange, will set position limits for the market participants. The 

Mandatory Rules empower the CNBV to monitor the regulation of the CCP to ensure that it 

sufficiently maintains market stability.

Recommendation 4.- Margin Requirements.

The Mandatory Rules establish the CCP as a self-regulatory entity, and the Prudential Provisions 

instruct the CCP to establish internal regulations regarding the terms and conditions for requiring 

Margins and Extraordinary Settlements. The Prudential Provisions also contemplate the 

existence of a risk management subcommittee to approve the validation of models and 

parameters used to determine margin requirements on a monthly basis. The Mandatory Rules 

empower the CNBV to monitor that the regulation is sufficient to ensure market stability and that 

it is met by all participants.

Recommendation 5.- Financial Resources.

The Mandatory Rules establish the minimum equity that each of the market participants must 

have in order to be approved as Exchange, CCP, clearing member or broker.

Recommendation 6.- Default Procedures.

The Mandatory Rules empower the CNBV to suspend a clearing member when its trades does 

not fulfill the terms of the applicable provisions. The Mandatory Rules also empower the CNBV 

to intervene in the CCP and appoint its Technical Committee when it is not fulfilling the 

applicable provisions. The Prudential Provisions establish the minimum conditions and 

requirements that the safety net of the CCP must meet.

Recommendation 7.- Custody and Investment Risk.

The Mandatory Rules state that the cash held in the Compensation Fund and Contributions Fund 

must be invested in bank demand deposits, government securities with maturities less than 90 

days, or repos with the same maturity, and any other securities approved by the authorities.

Recommendation 8.- Operation Risk.
The Mandatory Rules establish the CCP as a self-regulatory entity, and the Prudential Provisions 

instruct the CCP to enable a Safety Net that will decrease the risk when a clearing member fails 

in the delivery of Contributions or Settlements.

Recommendation 10.- Physical Deliveries.

The Mandatory Rules establish the CCP as a self-regulatory entity, and the Prudential Provisions 

instruct the CCP to enable mechanisms that ensure the delivery of the underlying assets by 

verifying that an entity receiving the goods to be physically delivered for an exchange-traded 

derivative contract keep adequate records and have the necessary storage conditions.

Recommendation 11.- Risks in Links Between CCPs.

There are no trades cleared by the clearing house that are related or cleared by another central 

counterparty.

Recommendation 12 .- Efficiency.

Asigna’s efficiency cannot be compared since there is no other central counterparty for 

derivatives products. However the contrast of its costs is carried out periodically by the 

participants of the organized market, which generally are the same participants in the Over The 

Counter market. Also Asigna has implemented comparison procedures with foreign CPPs. The 

differences found in this procedures are because of additional fees Asigna has to pay to its

trustee and other costs derived from the trust management.

Recommendation 13.- Governance.

The Mandatory Rules state that the clearing members, clearing house, Exchange or brokers, must 

agree in their bylaws or trust agreement that – in the case of irregularities of any kind that affect 

the stability, solvency, or endanger the public interests – the CNBV may immediately appoint 

people who will replace the board of directors or the Technical Committee of the aforementioned 

entities.

Recommendation 14.- Transparency.

The Prudential Provisions set the obligation for participants to keep all information of trades 

stored in the means authorized by the CNBV and to keep such records for a period of five years 

from the moment of the trade.

Asigna has the obligation to disclose trading data to market participants and the Exchange. The 

Mandatory Rules require the participants to provide information to the Ministry of Finance, the 

Central Bank and the CNBV, under the terms provided by them.

Recommendation 15.- Regulation and Oversight.
The Mandatory Rules establish the CCP as a self-regulatory entity, and the CNBV is empowered 

to monitor it at all times and to require the information that the CNBV deems necessary to verify 

compliance of the CCP with the rules and regulations.

(v) The extent to which the regulatory regime/authority reviews 

and/or approves the rules of the clearing organization prior to their 

implementation.

According to the Forty-Third Mandatory Rule, the application for approval of the clearing house 

must be submitted in writing to the Ministry of Finance, who will approve the application at its 

discretion after hearing the opinion of the CNBV and the Central Bank. Additionally, according 

to the last paragraph of the Seventeenth Mandatory Rule, any modifications made to the Trust 

Agreement and internal regulations must receive prior authorization from the Ministry of 

Finance after hearing the opinion of the CNBV and the Central Bank.

(vi) The regulatory regime/authority’s inspection, investigation and 

surveillance powers; and the program pursuant to which the regulatory 

regime/authority uses those powers to inspect, investigate, sanction, and 

enforce rules applicable to the clearing organization.

Asigna’s Trust Agreement provides that the clearing house is, at all times, subject to the 

supervision and monitoring of the CNBV. According to the Thirty-Ninth Mandatory Rule, the 

CNBV is empowered to monitor the clearing house, including the request and review of all 

books, records or electronically-generated documentation.

The CNBV supervises and regulates the clearing house through the exercise of the powers of 

inspection, surveillance, prevention and correction in order to ensure its stability and proper 

operation and to maintain and promote balanced development and protection of public interests. 

Article 5 of the National Banking and Securities Commission Law provides that the supervision 

carried out by the CNBV is aimed at evaluating the risks to which the clearing house is subject, 

its control systems and the quality of its administration in order to ensure that the clearing house 

maintains adequate liquidity, is solvent and stable and, in general, conforms to sound market 

practices. The same article states that, in order to assess the level of compliance, the inspection 

activities will be made through visits, verification of operations and audit of records and systems 

of the clearing house facilities or in its automated equipment. In terms of monitoring, it will be 

done through the analysis of economic and financial information in order to measure possible 

effects on the clearing house and the entire financial system.

The CNBV conducts activities of prevention and correction through the establishment of 

mandatory compliance programs to eliminate irregularities. Such programs are established when 

there are financial imbalances that may affect the liquidity, solvency or stability of the clearing 

house. Failure to comply with a mandatory compliance program may result in the exercise of the 

power contained in section XV of Article 4 of the National Banking and Securities Commission 

Law, which provides administrative intervention or management of the clearing house in order to 

suspend, standardize or to solve trades threatening the solvency, stability and liquidity of the 
clearing house, or those trades that violate applicable laws or general provisions derived 

therefrom.

Additionally, the CNBV may impose administrative penalties for violations of laws regulating 

the activities of the clearing house and to the provisions emanating from them. Where 

appropriate, the CNBV will assist the prosecution of offenses against criminal laws applicable to 

the financial system and the clearing house is legally bound to provide data, reports, records, 

minute books, documents, mail and general information that the CNBV considers necessary. 

The clearing house must provide such information in the form and content which the CNBV 

requires, and must allow the CNBV access to its offices, buildings and other facilities.

(vii) The financial protection afforded customer funds.

The clearing members must make a cash contribution to the Clearing House in the amount 

determined by the Admission and Risk Management Subcommittee in order to register, clear and 

settle trades. The Technical Committee establishes and discloses, through MexDer’s electronic 

bulletin, the parameters that the clearing house will consider to calculate the margins for each 

Class or Group Class.

The clearing house maintains a Contributions Fund and a Compensation Fund. The 

Contributions Fund is formed by the in cash or securities margins, that clearing members are 

obligated to provide on a daily basis for each open contract registered in their accounts at the 

clearing house. These margins should be invested in bank deposits, government securities with 

maturities less than 90 days, or repos with the same term on such securities, as well as other 

securities approved by the Financial Authorities.

On a daily basis, the clearing house updates the amount of margins for each clearing member 

and, where appropriate, requires additional resources or returns the surplus of resources in cash 

as part of the Daily Settlement. Additionally, the clearing house may update the Margins (or 

AIMS) of each clearing member during trading hours through the requirement of an 

Extraordinary Settlement. The clearing house will generate and provide to each clearing member 

a report containing information of their Margins. The amount of the Margins should be 

sufficient to cover the maximum expected losses that could occur as a result of the open 

contracts registered in their accounts each trading day.

In the agreement executed between the clearing house and each clearing member. the clearing 

member acknowledge that the clearing house may perform an administrative intervention if a 

clearing member’s equity falls below the minimum established and may also transfer, on behalf 

of the clearing member, its open contracts to other clearing members.

When instability conditions occur in the negotiation of an underlying asset, or when one or more 

clearing members increase considerably their open contracts, at the discretion of the Chairman or 

in his absence, Asigna’s CEO, the clearing house may require clearing members (during the 

hours of operation) to decrease the open contracts in their accounts or to increase their margins 

through an Extraordinary Settlement. Clearing members must comply with the Extaordnary 

Settlement within an hour of the clearing house’s request.
If a Client fails to deliver Daily Settlements or Extraordinary Settlements:

a) The clearing member must immediately inform the Exchange and the clearing house of 

the details of the client’s failure. In addition, the clearing house must immediately inform 

the Ministry of Finance, the CNBV, the Central Bank and other brokers and clearing 

members.

b) The clearing member will use the requested surplus of the Margins of the client in any of 

its open contracts to meet its obligations with the clearing house. When the surplus of the 

Margins is exhausted, the clearing member must ask the clearing house to release the 

margins for exchange-traded derivatives contracts of the client to cover its remaining 

obligations.

c) The clearing member and the clearing house will establish a program to liquidate the 

client’s open contracts on any underlying asset. Margins and any other assets made 

available by this liquidation will be used to meet the client’s unfulfilled obligations.

d) In the event that liquified assets are insufficient, the clearing member must use the excess 

of its Minimum Equity and immediately inform the credit information companies of the 

details of the client’s failure. If the excess of Minimum Equity does not cover the 

amount of the loss, the clearing house (according to its own rules) will intervene in the 

management of the clearing member to immediately transfer all the open contracts, as 

well as (if applicable) the surplus of Margins of those contracts, to other clearing 

members. In the event that such transfers are not possible, the clearing house will settle 

the open contracts through brokers or clearing members of its choice. Once the 

management intervention of the clearing member has ended, the clearing house will use 

the minimum net equity of the clearing member to pay for the amount of loss.

e) When the trustor, bank or brokerage firm of the intervened third party position clearing 

member participates in the exchange traded derivatives market with a proprietary position 

clearing member, the equity of this proprietary clearing member will be used to cover the 

loss of the intervened third party position clearing member. It is important to highlight 

that when a proprietary position clearing member fails to deliver Daily Settlements or 

Extraordinary Settlements, the equity of the correspondent third party position clearing 

member will not be used to cover such loss.

f) If the funds obtained pursuant to the preceding paragraphs are insufficient, the clearing 

house will use the Compensation Fund.

g) Ultimately, the clearing house may request Extraordinary Settlements from its clearing 

members in order to cover any remaining loss and to reconstitute the Compensation 

Fund.

In accordance with the Thirty-Seventh Bis 1 Prudential Provision, with respect to brokers who 

serve as Global Account Managers, the safety net must include at least the following: 

a) Brokers who serve as Global Account Managers must immediately inform the Exchange, 

the clearing house and the clearing member of the details of the client’s failure. In 
addition, the clearing house must immediately inform the Ministry of Finance, the 

CNBV, the Central Bank and other brokers and clearing members.

b) The broker will close the failing client’s positions and will deliver to the clearing member 

the surplus margins of that client. The clearing member must deliver the surplus margins 

and other released resources of the breaching client to the clearing house in order to settle 

pending obligations.

c) If the measures of the precedent paragraphs are insufficient, the clearing house must 

order all brokers and clearing members to verify if the breaching client has other open 

contracts in their account or sub accounts. If in fact there are other open contracts, the 

clearing house, at its discretion, will determine which contracts will be closed in order to 

settle the breaching client’s obligations.

d) If there is still a shortfall, the broker who serves as a Global Account Manager will be 

responsible for covering the shortfall up to the amount of the broker’s capital. Also, the 

broker must immediately inform the clearing member of this situation so that the clearing 

member may immediately inform the credit information companies of the details of the 

client’s breach. If it is necessary, the clearing house (according to its own rules), will 

intervene the broker to immediately transfer the Global Accounts (other than the one in 

which the failure occurred) as well as the surplus margins of these accounts to the broker 

or clearing member to which the clients wish to be transferred. If such transfers are not 

possible, the clearing house will settle the clients positions through brokers or clearing 

members as it may determine.

e) If all of the aforementioned is insufficient, the clearing house will close the necessary 

positions of the other clients of the Global Account that registered the breach. The 

clearing house will close positions in proportion to the shares in the account, and use its 

resources to settle the remaining obligations. If there is any amount leftover, the broker 

will distribute it among the clients in proportion to the amount of their contributions, 

including the value of their position at the end of the current day.

f) When the actions indicated in the preceding paragraphs are not sufficient, the clearing 

member of the Global Account in question must cover the shortfall. If necessary, the 

clearing house (according to its own rules) will intervene in the administration of the 

clearing member to immediately transfer the open contracts of its other clients (including 

other Global Accounts) and surplus margins to the client’s choice of broker or clearing 

member. In the event that such transfers are not possible, the clearing house must settle 

those open contracts through brokers or clearing members of its choice. The clearing 

house will use the total amount of assets of the clearing members of the defaulted Global 

account to settle the amount of loss.

g) When the trustor, bank or brokerage firm of the intervened third party position clearing 

member participates in the exchange traded derivatives market with a proprietary position 

clearing member, the equity of this proprietary clearing member will be used to cover the 

corresponding shortfall. 
h) If the assets obtained pursuant to the preceding paragraphs are insufficient, the clearing 

house will use the Compensation Fund.

i) Ultimately, the clearing house may request Extraordinary Settlements from its clearing 

members to cover the shortfall and to reconstitute the Compensation Fund.
1

EXHIBIT F – THE RULES OF THE CLEARING ORGANIZATION AND 

ENFORCEMENT THEREOF
2

EXHIBIT F-1

A description of the clearing organization’s regulatory or compliance department, 

including its size, experience level, competencies, duties and responsibilities of staff.

The Compliance Office of MexDer performs monitoring and surveillance activities with respect 

to the Exchange, the clearing house and the market participants. 

The Compliance Officer must be appointed in accordance with the Sixth Prudential Provision 

and the other requirements established for the appointment of directors and the chief executive 

officer. The Compliance Officer must be a person who has recognized expertise in the legal 

field and who does not (1) have an ownership interest in a broker, clearing member or financial 

institution, (2) hold an office or other position at a broker, clearing member or financial 

institution, or (3) sit on the board of any such institution.

The Compliance Officer is in charge of coordinating the activities of the Compliance Office and 

participates in establishing new regulations of the clearing house. In addition, the Compliance 

Officer participates in the clearing house committees (non-voting), and reports to the Technical 

Committee.

Currently, the Compliance Officer is a lawyer with 14 years experience at the Mexican Stock 

Exchange and its subsidiaries (BMV Group). The Compliance Officer of MexDer previously 

worked in the legal department of the Mexican Stock Exchange as legal deputy director of the 

central deposit of securities for the equity market, as well as in the development of the selfregulatory rules and the constitution of the securities central counterparty. He has two legal 

degrees; one in Mexican financial law and the other in international financial law. His role is 

supervising the audits and surveillance of the market as well as reviewing trading activity subject 

to possible disciplinary action.

The Compliance Deputy Director is an accounting graduate who has nine years of experience in 

the auditing area. He is in charge of coordinating and executing audits of market participants, as 

well as reviewing various periodic information received by the Compliance Office.

The Audit Manager is a public accountant with eight years of experience in the BMV Group, 

who previously worked in a recognized accounting firm specializing in auditing. He is in charge 

of coordinating and implementing audit activities, as well as tracking the follow-up activities of 

the audits. He is in charge of reviewing the financial information that is periodically received 

from the participants.

The Surveillance Manager has six years of experience in compliance and previously worked in 

the financial and operations area. The Surveillance Manager designed the surveillance system 

currently used by the Compliance Office for monitoring the market. He is in charge of the daily 

supervision of the market and identifying areas requiring special investigations. Additionally, he 
is in charge of coordinating the review and processing of information periodically received by 

the Compliance Office.

The specialists and analysts that make up the rest of the staff have educational backgrounds 

related to their roles.
4

EXHIBIT F-2

A description of the clearing organization’s rules and how they are enforced, with 

reference to any rules provided as part of Exhibit A-5 that require the clearing 

organization to comply with one or more of the RCCPs.

The clearing house has the authority to enforce the rules relating to the clearing and settlement. 

Each clearing member of the clearing house is bound by the clearing house’s Trust Agreement. 

Therefore, clearing members are subject to compliance with the rules and regulations concerning 

the clearing and the settlement based not only on the Mandatory Rules and Prudential Provisions 

but also on their status as trustors and beneficiaries of the clearing house. Under the authority 

granted by the Mandatory Rules and the Trust Agreement, the clearing house has full control 

over the resources that it receives to cover possible defaults. The clearing house has the ability 

to exercise its powers of enforcement without having to go through an adjudication of property 

process. Moreover, the clearing house also has disciplinary rules that correspond to violations of 

procedures and schedules of the processes of clearing and settlement of the trades. See also

Supplement S-1, Exhibit E(3)(iii).

As part of its efforts to fulfill the main recommendations of CPSS-IOSCO for Financial Market 

Infrastructures (“FMIs”) with respect to central counterparties (“CCPs”) Asigna will assess the 

adequacy of capital in the Safety Net (including the Trust Equity and the Contributions and 

Settlement Funds) against the possible bankruptcies of major participants. Asigna will perform 

stress tests to help evaluate the adequacy of its capital. Asigna expects to finalize its assessment 

regarding CPSS-IOSCO recommendations in the end of 2012.

Another recommendation for CCPs is related to Principle 16 of the “Principles for Financial 

Market Infrastructure” which states: “The assets of an FMI must be safeguarded, minimizing the 

risk of loss and delay in the access to these assets, including those deposited by its participants.” 

Based on this principle and the requirements of Asigna’s Trustee to minimize operational risk of 

the Trust Equity resources, the Trustee safeguards securities and cash for the Trustee has 

procedures to ensure the daily operation of the Trust Equity resources. 

Most of the principles are addressed throughout the regulations described in Exhibit A-5. This 

year Asigna will seek to strengthen them.
5

EXHIBIT F-3

A description of the clearing organization’s disciplinary rules, including but not 

limited to rules that address the following -

(1) Disciplinary authority and procedures that empower staff to recommend and 

prosecute disciplinary actions for suspected rule violations and that provide the 

authority to fine, suspend, or expel any clearing participant pursuant to fair and 

clear standards.

Chapter Eleven of Asigna’s Internal Regulations designate the Technical Committee through the 

Chief Executive Officer of the clearing house or the Disciplinary Subcommittee (Article 

1100.00) as authorities for the imposition of disciplinary measures. Asigna’s Internal

Regulations empower the Chief Executive Officer, the Disciplinary Subcommittee or the 

Technical Committee to impose disciplinary measures according to the severity of the violation

(Articles 1109.00, 1111.01 (section III), 1111.02 (section II), 1114.00 and 1116.00).

Asigna’s procedures for imposing disciplinary sanctions depend on the severity of the behavior. 

For infractions that are not considered serious, Asigna follows a simplified procedure. Under 

this process, the Compliance Officer issues a summons to the clearing member with reasonable 

timeframe for a response. Article 1101.01 establishes the power of the Compliance Officer to 

evaluate the member's response and, based on that evaluation, dismiss the action or request that 

the Chief Executive Officer impose appropriate disciplinary measures. Part Two of Chapter 

Eleven (Articles 1117.00 to 1128.00) establishes the procedure by which the members subject to 

a disciplinary sanction of this type may file an appeal for reconsideration before the Chief 

Executive Officer.

The procedures or serious disciplinary matters are governed by Part Three of Chapter Eleven of 

Asigna's Internal Regulations. Serious disciplinary matters require the Compliance Officer to 

issue a complaint against the member. The member is entitled to a hearing before a disciplinary 

panel. Once the disciplinary panel issues its findings, the member is entitled to appeal the 

panel's findings (Articles 1129 to 1136.00).

(2) The issuance of warning letters and/or summary fines for specified rule 

violations.

As explained in the preceding section, administrative and minor violations by participants fall 

under the authority of the Chief Executive Officer. Asigna’s Internal Regulations provide for 

two types of disciplinary measures, warning letters and economic sanctions. Various, lesser

disciplinary measures that derive from objective elements (such as the delay in the schedule of 

the procedures for the delivery of securities or cash for the daily settlement) are imposed by a

simple procedure that may be considered as summary even though it provides for an appeal for 

reconsideration due to specific causes.
(3) The review of investigation reports by a disciplinary panel or other authority 

for issuance of charges or instructions to investigate further, or findings that an 

insufficient basis exists to issue charges.

Article 1129.00 of Asigna’s Internal Regulations provides, “The clearing house is free at any 

time to begin preparing a case as a consequence of a suspicion or detection of any violation of 

the rules established in the Regulations and in the Operating Manual.” It is understood that those 

who may exercise the clearing house’s power are the Chief Executive Officer, the Chairman of 

the Technical Committee and the Technical Committee itself acting as a collegiate body.

In addition, Article 1131.00 provides that investigations and, where appropriate, cases may be 

initiated when the clearing house detects any apparent infraction and the Compliance Officer has 

the necessary elements derived from any investigation or audit, or whenever any person 

complains to the clearing house of an alleged violation and the Compliance Officer has 

assembled the necessary elements of a case in the course of an investigation.

Finally, in accordance with the provisions of Article 1133.00, is the responsibility of the 

Compliance Officer to evaluate the grounds of any charges and, where appropriate, dismiss them

after explaining to the complainant in writing the reasons for such a decision. If the Compliance 

Officer drafts charges, a Process Delegate must evaluate the soundness of the complaint, and 

where appropriate, notify the charged parties that proceedings have begun (see Article 1136.00).

(4) Disciplinary committees of the clearing organization that take disciplinary 

action via formal disciplinary processes.

There is a potential contradiction between the Mandatory Rules and the Prudential Provisions as 

to which committee has the authority to impose disciplinary measures. The Twentieth 

Mandatory Rule establishes that the clearing house has the obligation to create, among others, a 

committee to implement the appropriate disciplinary measures for violations. Meanwhile, the 

Thirty-Second Prudential Provision states that the Technical Committee of the clearing house, 

among others, will have the power to impose sanctions based on violations of the standards 

issued by the clearing house. This power may be delegated to the directors and committees of 

the clearing house, depending on the nature of the breach or the amount of the penalties. The 

potential contradiction is resolved in Asigna’s Internal Regulations (approved by the authority 

which issued the Mandatory Rules and with the approval of the authority that issued the 

Prudential Provisions), which provides that disciplinary measures may be imposed by the 

Technical Committee through the Chief Executive Officer or the Disciplinary Committee, as 

described in paragraph (1) above regarding disciplinary authority and procedures.

(5) Whether and how the clearing organization articulates its rationale for 

disciplinary decisions.

Articles 1100.00 – 1136.00 in Asigna’s Internal Regulations address disciplinary measures. 

Asigna’s Internal Regulations are attached to Supplement S-1, Exhibit A-5.
(6) The sanctions for particular violations and a discussion of the adequacy of sanctions 

with respect to the violations committed and their effectiveness as deterrents to future 

violations.

Articles 1100.00 – 1136.00 in Asigna’s Internal Regulations address disciplinary measures. 

Asigna’s Internal Regulations are attached to Supplement S-1, Exhibit A-5.
8

EXHIBIT F-4

A demonstration that the clearing organization is authorized by rule or contractual 

agreement to obtain, from members and other participants, any information and 

cooperation necessary to conduct investigations, to effectively enforce its rules, and to 

ensure compliance with the conditions of registration.

By signing the Adhesion Agreement and becoming Trustors, clearing members agree to abide by 

the Mandatory Rules, Prudential Provisions and other self-regulatory rules of the Exchange and 

the clearing house.

The Mandatory Rules require clearing members to undergo ongoing audit programs established 

by Asigna to monitor their performance. Clearing members and brokers accredited as global 

account managers that are subject to inspection and oversight by the clearing house must supply 

the clearing house with all the support it needs, including the data, reports, records, minutes, 

documents, correspondence, and, in general, any documentation the clearing house considers 

necessary, including access to their offices, premises and other facilities.

Furthermore, clearing members and brokers accredited as global account managers must agree to 

allow the clearing house to intervene if the clearing members’ and/or brokers’ assets are below 

the minimum established by the financial authorities. In such cases, the clearing house will 

transfer the open contracts to one or more other clearing members.
1

EXHIBIT G – INFORMATION SHARING AGREEMENTS AMONG THE 

COMMISSION, THE FOREIGN BOARD OF TRADE, THE CLEARING 

ORGANIZATION, AND RELEVANT REGULATORY AUTHORITIES
2

EXHIIBT G

(1) A description of the arrangements among the Commission, the foreign board of 

trade, the clearing organization, and the relevant foreign regulatory authorities that govern 

the sharing of information regarding the transactions that will be executed pursuant to the 

foreign board of trade’s registration with the Commission and the clearing and settlement 

of those transactions. This description should address or identify whether and how the 

foreign board of trade, clearing organization, and the regulatory authorities governing the 

activities of the foreign board of trade and clearing organization agree to provide directly 

to the Commission information and documentation requested by Commission staff that 

Commission staff determines is needed:

(i) To evaluate the continued eligibility of the foreign board of trade for 

registration.

(ii) To enforce compliance with the specified conditions of the registration.

(iii) To enable the CFTC to carry out its duties under the Act and Commission 

regulations and to provide adequate protection to the public or registered entities.

(iv) To respond to potential market abuse associated with trading by direct access 

on the registered foreign board of trade.

(v) To enable Commission staff to effectively accomplish its surveillance 

responsibilities with respect to a registered entity where Commission staff, in its discretion, 

determines that a contract traded on a registered foreign board of trade may affect such 

ability.

The Commission will be entitled to receive certain specified information regarding MexDer, the 

System and MexDer’s market participants directly from MexDer pursuant to the terms and 

conditions of the registration requested herein. Among other things, MexDer is a signatory to 

the companion memorandum to the Declaration on Cooperation and Supervision of International 

Futures Markets and Clearing Organizations (commonly referred to as the “Boca Declaration”). 

As such, MexDer supports the sharing of relevant information between certain derivatives 

exchanges and clearing organizations in order to combat potential hazards to the stability, safety 

and soundness of the international financial markets. Under Mexican law, MexDer may not 

disclose the beneficial ownership of an account, but is otherwise permitted to disclose directly to 

the Commission (and the general public) information related to transactions effected on MexDer.

The Commission also will be entitled to receive information regarding market participants 

directly from the Mexican Financial Authorities. In particular, Mexican law authorizes the 

CNBV to obtain information, in addition to that which is available to the general public, from 

clearing members and trading members and to reveal that information to foreign financial 

supervisory and regulatory agencies, such as the Commission. Mexican law additionally 

authorizes the CNBV to assist international bodies performing market surveillance and to furnish 

information to these foreign authorities pursuant to exchange of information agreements, such as 

the Memoranda of Understanding discussed below.
(2) A statement as to whether the regulatory authorities governing the activities of the 

foreign board of trade and clearing organization are signatories to the International 

Organization of Securities Commissions Multilateral Memorandum of Understanding. If 

not, describe any substitute information-sharing arrangements that are in place.

The Commission and CNBV entered into a Memorandum of Understanding on Consultation, 

Technical Assistance, and Mutual Assistance for the Exchange of Information (“MOU”) on May 

11, 1995. The MOU addresses information sharing and is intended to assist both the 

Commission and CNBV in regulating and preventing fraud and abuse in the financial markets. 

The MOU remains in effect, and contemplates CNBV and the Commission providing the fullest 

measure of mutual assistance to facilitate their respective futures market oversight functions and 

to enforce the laws and regulations applicable to futures markets. In addition, CNBV is a 

signatory to the IOSCO Multilateral Memorandum of Understanding Concerning Consultation 

and Cooperation and the Exchange of Information (the “MMOU”), which promotes mutual 

cooperation and consultation among IOSCO Members (including both the Commission and 

CNBV) to ensure compliance with, and enforcement of, their securities and derivatives laws and 

regulations. The CNBV has confirmed to the Commission that it is committed to fulfill the 

scope of assistance established in Article 7 of the MMOU and that the information-sharing terms 

of the MMOU will extend to information requested by the Commission regarding the activities 

conducted pursuant to any registration granted to MexDer as an FBOT.

(3) A statement as to whether the regulatory authorities governing the activities of the 

foreign board of trade and clearing organization are signatories to the Declaration on 

Cooperation and Supervision of International Futures Exchanges and Clearing 

Organizations. If not, a statement as to whether and how they have committed to share the 

types of information contemplated by the International Information Sharing 

Memorandum of Understanding and Agreement with the Commission, whether pursuant 

to an existing memorandum of understanding or some other arrangement.

MexDer is a signatory to the companion memorandum to the Declaration on Cooperation and 

Supervision of International Futures Markets and Clearing Organizations. As such, MexDer 

supports the sharing of relevant information between certain derivatives exchanges and clearing 

organizations in order to combat potential hazards to the stability, safety and soundness of the 

international financial markets.