Board of Directors

Executive Committee

Message to our Members

Report of the General Director

1. Regulation

• Brokerage Firms
• Risks
• Global Market
• Mutual Funds
• Derivatives
• Self-Regulation

2. Trading

• Instruments
• Securities Deposits
• Fiscal Matters
• Accounting Aspects
• Human resources
• Trading
• Money Market
• Technology

3. Image

• Market Promotion
• Securities Market Education
• Events and conferences
• Communications
• Certification

Financial Highlights

• Securities in Custody
• Paid in Capital
• Equity
• Number of Accounts
• Number of Employees
• Securities in Custody / Number of Employees
• Securities in Custody / Number of Accounts

Committees and Subcommittees

• Administration Committee
• Analysis Committee
• Capital Market Committee
• Certification Committee
• Compliance Committee
• Compliance Officers Committee
• Corporate Financing Committee
• Disciplinary Committee
• Legal Finance Committee
• Money Market Committee
• Mutual Funds Committee
• Risks Committee
• Systems Committee
• Trade of Derivate Products Committee
• Accounting Subcommittee
• Compliance Mutual Funds Subcommittee
• Fiscal Subcommittee
• Human Resources Subcommittee
• Operations Subcommittee

AMIB Members

AMIB Affiliates

Executives

Brokerage Firms

Trading in the Equity Market

Financial markets around the world are making increasing use of algorithms and direct electronic media for designing and executing trading strategies.  In response to this trend, AMIB members developed a proposal on modifications to Chapter Two of Title Three of the Unified Brokerage Firm Bulletin, regarding the order receipt and assignment system. The proposal essentially suggests the following changes:

• Update the wording of sections relating to:
• Eliminating Equity Contribution Certificates.
• Allowing for Securities Loans effective on Value Date.
• Simplifying the registry and identification of self-entry trades by reporting those transactions in the account statement, and specifying when the uptick rule is applied in this type of transaction.
• Making the changes necessary to develop the concept of Market Maker, expanding trading o f low and minimum-marketability instruments.
• Give the client the prerogative in book transmission instructions, and require clients' authorization for grouping orders.
• Make trading in package orders more flexible by adjusting the assignment order.
• Include some proposals for improvement in the execution and assignment of trades, in order to allow program trading algorithms to co-exist with client bids and asks, guaranteeing the priority of ordinary orders at all times.

This proposal was presented to the authorities in December, and the following agreements were reached:

In the next modification to the Unified Bulletin, only some of these issues will be incorporated, along the rules on Market Makers.

AMIB will present a proposal on market order functionality.

The CNBV asked AMIB to analyze extraordinary orders that are requested by the client or sent directly to the order book, and to conduct an exercise regarding the scenarios that would justify changing the order of preference.

Finally, it was agreed that the authorities would analyze the proposals and define which should be adopted, and depending on the results, call for a subsequent analysis of the best way to implement them.

 

Market Makers

Over the course of the year, AMIB representatives took part in various work meetings with the BMV to define modifications and develop changes necessary to introduce the category of Market Maker. Among the most important agreements reached in these meetings were:

• Rules on the functions of the Market Maker on the Mexican Stock Exchange.
• Methodology for generating Trading Parameters
• Trading Parameters for Market Makers
• Standard-Form Service Agreement for Market Makers
• Proposed changes to the Unified Brokerage Firm Bulletin
• Changes to the Internal Regulations of the Exchange in order to take into account the functionality of price formation.

The Market Maker category is expected to be introduced in 2008, because the necessary changes must still be made to the Unified Brokerage Firm Bulletin.

 

Market Maker in Government Securities on behalf of the Ministry of Finance, and promotion of Securities Lending.

Pursuant to modifications to Bulletins 3/2007 and 9/2007 issued by Banco de México, which changed the procedures for acting as Market Maker in government securities, a number of meetings were held with officials of the Ministry of Finance (SHCP) in order to go over the results of the diagnosis carried out among leading institutional investors, to determine why they are not taking advantage of securities lending and instead resorting only to discount window financing.  To address this problem, a special seminar on securities lending was held on September 19, organized by the Mexican Bankers' Association with the support of the SHCP, Banco de México, and AMIB.  In that seminar:

• The SHCP made a presentation about the new procedure for making markets in Government Securities
• The results of the diagnosis of leading institutional investors were presented, detailing the reasons why they were making use of Banco de Mexico's discount window rather than securities lending.
• The SHCP explained the basic change in that procedure, which was to incorporate incentives and penalties for Market Markers in order to more efficiently align the incentives of various market participants.  In addition, the cost of Banco de México financing will be higher for Market Makers that do not engage in term Repo trading of Securities Lending (7%) and lower for those that do (3%). The average cost will be 5%.
• All the parties agreed to continue working together with AMIB to promote securities lending activity.

 

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