1. Principles for financial market infrastructures
Mexico’s experience
National Banking and Securities Commission
Vice Presidency of Securities Supervision

2. INTRODUCTION
In line with the G20, CPSS and IOSCO’s expectations, Mexico has committed to adopt the 24 Principles and the five Responsibilities included in the PFMI’s.
In Mexico, there are 3 FMI´s for the securities and derivatives markets:
Stock Exchange
Derivatives Exchange
Investor
Debt Market
Central Counterparty (securities)
Central Securities Depository
Central Counterparty (derivatives)

3. Mexican Financial Authorities (MFA)
Central Bank of México (BDM) and the National Banking and Securities Commission (CNBV) have regulatory and oversight responsibilities for INDEVAL. The main activities where BDM and CNBV have regulatory relations are:
Provide an opinion to the Minister of Finance to grant and revoke the concession.
Approval of the internal rules and their amendments.
Approval the scheme of fees.

4. Mexican Financial Authorities (MFA)
Stakeholder of Indeval (1 Share).
Part of the Board of Directors.
Manager of the participants’ cash accounts.
Surveillance and oversight.
Establish the regulatory framework of their operations.
Enforcement of the Securities Market Law.

5. CENTRAL SECURITIES DEPOSITORIES
Statistics

6. CENTRAL SECURITIES DEPOSITORIES: Implementation monitoring of PFMI’s
(May -14)
Regarding the Responsibilities, all countries assessed are rated with a 4, which means that final implementation measures are in force.

7. CENTRAL SECURITIES DEPOSITORIES General Status1
Legal basis 2
Governance 3
Framework for the comprehensive management of risks 10
Physical deliveries 11
Central securities depositories 13
Participant-default rules and procedures 15
General business risk 16
Custody and investment risks 17
Operational risk 18
Access and participation requirements 19
Tiered participation arrangements 20
FMI links 21
Efficiency and effectiveness 22
Communication procedures and standards 23
Disclosure of rules, key procedures, and market data

8. CENTRAL SECURITIES DEPOSITORIES
MFA have taken the following actions:
The current regulation allow the Indeval's adoption of PFMI’s.
MFA have informed Indeval that it should comply with PFMI’s.
Furthermore, in October 2013 and January 2014, CNBV and BDM published their new policy statements, requiring PFMIs’ compliance, respectively.
Since 2013, MFA have formally requested amendments to Indeval’s internal rules to ensure the adoption of the PFMI’s and have already done assessments to evaluate it. In the cases where Indeval has failed to meet the required standards, the appropriate corrective measures have been imposed.

9. CENTRAL SECURITIES DEPOSITORIES
MFA have taken the following actions:
The minimum capital requirement was strengthened, in order to ensure Indeval can cover general business risks such as revenue shortfalls or unexpected costs.
Next Step:
Considering the assessments mentioned above, CNBV and BDM are working on determine the limit date to require Indeval to observe the Principles in the near future.

10. Eduardo Flores Herrera
Vice President of Securities Supervision
May, 2015.