The Financial Safeguard System has the main purpose of ensure that Asigna has sufficient reserves to cover the clearing guarantee it provides to the market. In this way, if a Client of some Clearing Member is in default of its obligations, the Clearing Member must apply its own Internal Financial Safeguard System to restore that default of obligations, including extra charges generated by the failure. The resources that structure the Safeguard System are of the following types:

Funds Managed by Clearing Members

(1)   Additional Margin

The main depositors of this fund are the Clients and it can be constituted in cash or securities. The individual contribution of each Clearing Member may be used to cover client's liquidity risk. It is managed by the Clearing Member, who has the obligation of survey the deposit of this fund on a daily basis. The procedure to determine "the amount" to be deposited as additional margin depends on: a) Margin requirement for the portfolio (market risk); and b) credit evaluation of the Client.

Funds Managed by Clearing House

(1)   Margin

Margins must be sufficient to cover maximum possible losses that could be generated per each open contract. The main depositors of this fund are the Clients through the Clearing Members and it can be constituted in cash or securities. The individual contribution of each Clearing Member may be used to cover client's market risk. It is managed by the Clearing House, who has the obligation of survey the deposit of this fund on a daily basis. The determination of "the amount" to be deposited as margin depends on the individual risk of every portfolio that carries open positions; this risk is determined by Theoretical Intermarket Margin System methodology.

(2)   Clearing Fund

The main depositors of this Clearing Fund are the Clearing Members and it can be constituted only in cash. The individual contribution of each Clearing Member may be used to cover the default of any Clearing Member and Asigna has the obligation of survey the deposit of this fund on a daily basis. The procedure to determine "the amount" to be deposited in the Clearing Fund is established in accordance to the Rules and Regulations. It is the maximum of the followers: a) The preoperational deposit established as MXP$100,000; b) a percentage determined by the Risk Management Committee (10%) based on the average of the Margin requirements maintained in the last 30 labor days, and c) a percentage to be determined by the Risk Management Committee (10%) based on the Margin requirement of the last trading day.

Clearing Member Supervisory Capital

(1)   Proprietary Clearing Member's Supervisory Capital

These funds must be provided by the Clearing Members to make up their own position and are used to cover default obligations. The Proprietary Member Working Capital is estimated daily as the maximum between the sum of the Margins deposited in the Clearing House multiplied by 4% and the equivalent to 2.5 millions of investment units linked to inflation.

(2)   Third-Party Clearing Member's Supervisory Capital

These funds must be provided by the Clearing Members to make up their third position and are used to cover default obligations. The Third-Party Member Working Capital is estimated daily as the maximum between the sum of the Margins deposited in the Clearing House multiplied by 8% and the equivalent to 5 millions of investment units linked to inflation.

Clearing House Capital

(1)   Clearing House Capital

This fund is used in cases where all the Trustees are in default of their obligations. In that case Asigna has its own Capital to respond to the failure; this Capital is conformed by at least 15 millions of investment units linked to inflation.

Asigna's Internal Rules and Regulations establish the policies and procedures related to the use of resources that structure the Safeguard System.

* Notional Value adjusted by Interest Rate Futures Contracts Duration.