Indeval operates under the settlement models established by the Bank of International Settlements (BIS). S.D. Indeval's Delivery Versus Payment (DvP) model combines securities and cash clearing (BIS Model 3), as well as transaction-by-transaction settlement (BIS Model 1) so that as long as participants have the protection and funds available, the settlement will be made in full or in part.

In addition to the DvP model, for fixed income and government securities transactions, a TLPs or FoPs (Free Transfer of Payment) settlement scheme can be used, consisting of settlement until the full position exists to cover 100% of the transaction's securities.

The settlement is done in real-time in the system; no process is Batch. Settlement cycles are performed every 2 minutes, and it takes seconds for the process to start and end.

Indeval operates from 7:05 a.m. to 4:15 p.m. for Delivery Versus Payment (DvP) operations. Value Date operations, Value Transfers, and System Opening can be performed up to 06:15 p.m.

Regardless of the type of instrument in question, Indeval's legal area will review the following minimum requirements that must be met:

• Securities must comply with the applicable literality requirements under the regulations that govern each title and security.

• In the case of nominative securities, it will be verified that they have the mention of being deposited in S.D Indeval so that the mentioned mention produces the effects of the endorsement in administration referred to in article 283 of the LMV. (Securities Market Law)

• The security has no contradictions in its text (dates and quantities).

• The amounts contained in the security are consistent in number and letter, as well as the Series and Classes to which it corresponds. Also, the data mentioned above are consistent with the certification submitted to Indeval about the resolutions taken at the Assembly, Board of Directors, or body authorized to determine them.

• The amounts in lettering in the title are correctly written (no "finger" errors).

• If applicable, the stipulation of the issuer that the title does not carry coupons, in accordance with article 283 of the LMV.

• The numbering of the security sheets is correct.

• The security contains the Quotation Key, if applicable.

• The obligations established in the security in-charge of Indeval are of a possible execution, both operationally and legally, that is to say, that they are consistent with the activities of Indeval foreseen in the LMV. (Securities Market Law)

• The security allows for the notices that Indeval requires to carry out its administration (payment of interest and amortization, early maturity, deferment of interest and principal, etc.)

• The security is signed by people with sufficient powers to do so, accredited before Indeval following its applicable Manual.

There are more requirements to be considered depending on the instrument in question: shares, stock certificates, bank bonds, warrants, subordinated obligations, ordinary or real estate participation certificates, promissory notes, bank acceptances, and bank term deposit certificates.

For more information on the requirements by security type , send us an email from the Contact us section and we'd gladly assist you.

Contact the sales and product team (comercialyproducto@grupobmv.com.mx) to receive the information.