Compliance Report ISSA Recommendations 2000

ISSA - International Securtities Services Association

Compliance to the ISSA Recommendations 2000

Market: Mexico

Status: October 3, 2001

Recommendation 1
Recommendation 2
Recommendation 3
Recommendation 4

Recommendation 5
Recommendation 6
Recommendation 7
Recommendation 8

Market selection

Recommendation 3

The industry worldwide must satisfy the need for efficient, fast settlement by full adherence to the International Securities Numbering process (ISO 6166) and uniform usage of ISO 15022 based standards for all securities messages. The industry should seek to introduce a global client and counterpart identification methodology (BIC - ISO 9362) to further facilitate straight through processing. Applications and programmes should be structured in such a way as to facilitate open inter-action between all parties.

1. Does the market use ISIN as the primary securities identification code? Though most securities in the Mexican market do have ISINs, local parties use a local code which is based on the security’s ticker symbol on the stock exchange for equities, and the issuer name and maturity date for fixed income securities. ISINs are widely used by foreign institutional investors investing in the Mexican market.

Indeval is the designated numbering agency for ISINs and has recently announced that it will be issuing ISINs for fixed income instruments with a maturity of less than 28 days, currently the only group of securities in the Mexican market without ISINs.

2. Are the major participants in the market linked electronically? Yes, all local participants are linked electronically to Indeval through its proprietary system. Indeval is linked electronically with the BMV and the Banco de Mexico (Banxico), the central bank.

3. Does the depository communicate using true (i.e. not bilaterally agreed on sub-standards) ISO standards for securities messaging? No. The depository communicates with its participants/members through its proprietary system and does not use ISO standards for securities messaging.

4. Does the market operate standard identification codes for counterparties or client accounts and, if so, how do (or could) these fit into a single global identification methodology? Each system has its own internal codes or account numbers (the Mexican Stock Exchange, Indeval, the Central Bank payments systems, etc). However, counterpart name is also used in the Stock Exchange and Indeval systems.

1.	Does the market use ISIN as the primary securities identification code?	Though most securities in the Mexican market do have ISINs, local parties use a local code which is based on the security’s ticker symbol on the stock exchange for equities, and the issuer name and maturity date for fixed income securities. ISINs are widely used by foreign institutional investors investing in the Mexican market. Indeval is the designated numbering agency for ISINs and has recently announced that it will be issuing ISINs for fixed income instruments with a maturity of less than 28 days, currently the only group of securities in the Mexican market without ISINs.
2.	Are the major participants in the market linked electronically?	Yes, all local participants are linked electronically to Indeval through its proprietary system. Indeval is linked electronically with the BMV and the Banco de Mexico (Banxico), the central bank.
3.	Does the depository communicate using true (i.e. not bilaterally agreed on sub-standards) ISO standards for securities messaging?	No. The depository communicates with its participants/members through its proprietary system and does not use ISO standards for securities messaging.
4.	Does the market operate standard identification codes for counterparties or client accounts and, if so, how do (or could) these fit into a single global identification methodology?	Each system has its own internal codes or account numbers (the Mexican Stock Exchange, Indeval, the Central Bank payments systems, etc). However, counterpart name is also used in the Stock Exchange and Indeval systems.