FSB全球金融稳定委员会-Peer-Review-of-Mexico_34页_804kb

Peer Review of Mexico Summary

Core Content

This report is the second FSB peer review of Mexico, focusing on the implementation and effectiveness of OTC derivatives market reforms. It evaluates the steps taken by the Mexican Financial Authorities (MFAs) to address G20 recommendations and outlines recommendations for further improvements.

Main Findings

• Market Overview: Mexico's OTC derivatives market is relatively small globally but the largest in Latin America. Banks account for 83% of the market share, followed by brokerage firms (16%), with a substantial cross-border component.
• Asset Classes: Interest rate derivatives (85% of notional amount) dominate the market, while FX derivatives account for 87% of daily turnover.
• Legal Framework: Mexico lacks a specific law for OTC derivatives, but has developed regulations through general provisions involving SHCP, Banxico, and CNBV.
• Progress: The MFAs have made good progress in implementing trade reporting, central clearing, and platform trading reforms, with a strong emphasis on transparency and data quality.
• Challenges: Remaining reforms, particularly capital and margin requirements for NCCDs, are not yet fully implemented. CNBV has limited authority to enforce conduct rules for OTC derivatives. TR data reporting is not comprehensive enough, especially for non-financial entities and non-listed companies.
• Cross-Border Reporting: There are barriers to full cross-border reporting, and the MFAs should remove these to align with international standards.

Key Recommendations

1. Complete Remaining Reforms:

   • Finalise capital requirements for NCCDs.
   • Implement margin requirements for NCCDs, including for pension funds, insurance companies, and non-financial entities, with appropriate thresholds.
   • Adopt the globally harmonised UTI, UPI, and CDE.

2. Expand CNBV Authority:

   • Enhance CNBV's supervisory and enforcement powers over OTC derivatives, including the ability to sanction individual misconduct and apply market manipulation rules.
   • Ensure CNBV has authority over non-financial entities and those that only deal in derivatives.

3. Enhance TR Data Reporting:

   • Increase the frequency and granularity of TR data reporting from publicly listed companies.
   • Require TR data reporting from insurers and non-listed non-financial entities, subject to appropriate thresholds.
   • Consider daily position data reporting requirements for large OTC derivatives transactions.

Implementation Status (as of end-Sep 2019)

• Blue cells indicate comprehensive standards/requirements in place for over 90% of transactions.
• 1 refers to the initial stage (legislative framework or public consultation).
• 2 means standards are in place with public consultation.
• 3 indicates standards have been adopted.

Additional Key Information

• Data Sharing: The requirement for CNBV and Banxico to review data shared with foreign TRs creates a de facto barrier to full cross-border reporting.
• Regulatory Amendment: A draft regulation was published in March 2020 to address these issues, but it has not been examined by the review team.
• Future Considerations: The MFAs should reassess new products for mandatory clearing and electronic trading, and ensure that all OTC derivatives data involving Mexican counterparties is accessible to them.

Conclusion

The peer review concludes that Mexico has made significant progress in implementing OTC derivatives reforms, but further steps are necessary to fully align with international standards. These include completing reforms, expanding CNBV's authority, and enhancing TR data reporting. The recommendations aim to improve transparency, risk mitigation, and systemic resilience in the Mexican OTC derivatives market.