Page 338 - Invited Paper Session (IPS) - Volume 1

IPS155 Manuel S. V. et al.
microdata model to replicate a large proportion of these ratios using the
microdata of operations. Currently the LCR is a daily requirement with a 10
days lag revision. These improvements have enhanced financial stability
analysis and surveillance of financial institutions.
Banco de Mexico, has also implemented new information requirements to
improve the surveillance of the payments system. In 2015, Banco de Mexico
improved the template, timeliness and quality of the report of all credit and
debit card transactions, increasing the fields of the information to include data
on the location of each transaction and the activity of the business, among
2
other. The timeliness of the reporting is one day. More recently, this
information was extended with a new requirement to include not only
information on the transaction, but also, information that includes all the
confirmation messages related to each transaction. In 2017 Banco de Mexico
implemented a new requirement about all cross-border transactions made by
financial intermediaries via correspondent banking.
Another important improvement has been the information model on
derivatives. Banco de Mexico has been collecting information transaction by
transaction on derivatives operations performed by banks and brokerage
houses since 1999, and it was a natural step to operate with the functions of a
“Trade Repository (T.R.) like” infrastructure for the international initiative of
IOSCO-CPMI to reduce the risk in the OTC derivative market.
To better perform the functions of a T.R. like, an important update of the
reports was made in 2015 to include new developments in markets and
instruments, information to respond to new demands by users and
information related to regulatory changes, particularly the standardization of
OTC operations and the central counterparty. In this respect it was designed
to fulfil a set of data elements consistent with the principles proposed by
international institutions (IOSCO) and regional regulators (ESMA), which
includes a better identification of underlying assets, products (ISDA
taxonomy), netting agreements, among other.
Another improvement is to centralize in a single template, a catalogue of
entities, the characteristics of counterparties of all operations, including
derivatives, of the banks and brokerage houses in financial markets. These
characteristics include the tax identifier as well as the Legal Entity Identifier
(LEI), economic activity, residency, and relevant relations with the party, among
other. This new requirement allows a better identification of the different
3
entities trading in the domestic financial markets and of foreign exposures. In
addition, and linked to the counterparty information, the data on collateral of

2 To identify the kind of activity of merchant is used the Merchant Category Code (MCC).
3 The economic activity identification is according to North American Industrial Classification
System (NAICS).
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