BCB Resolution No. 180

BCB RESOLUTION NO. 180, OF JANUARY 19, 2022

Provides for the institutions accredited to operate as dealers with the Open Market Operations Department (Demab).

The Collegiate Board of the Central Bank of Brazil, in a session held on January 19, 2022, based on Art. 10, item XII, of Law No. 4,595, of December 31, 1964, and Arts. 1 and 3 of Law No. 14,185, of July 14, 2021, and considering the provisions of BCB Resolution No. 75, of February 23, 2021, and BCB Resolution No. 129, of August 19, 2021,

RESOLVES:

CHAPTER I

GENERAL PROVISIONS

Art. 1. This Resolution provides for the institutions accredited to operate as dealers with the Open Market Operations Department (Demab) of the Central Bank of Brazil.

CHAPTER II

ELIGIBILITY

Art. 2. The institutions accredited to operate as dealers with Demab will be selected among the financial institution participants of the Special Settlement and Custody System (Selic).

Art. 3. The following are prerequisites for the accreditation of the institution to operate as a dealer with Demab:

I - reference equity of at least R$26,250,000.00 (twenty-six million two hundred and fifty thousand reais);

II - high ethical standard of conduct in transactions carried out in the financial market; and

III - absence of restrictions that, at the discretion of the Central Bank of Brazil, discourage accreditation.

CHAPTER III

PERFORMANCE EVALUATION

Art. 4. The institutions accredited to operate as dealers with Demab will be selected through a performance evaluation, which will be carried out every six (6) months, taking into account transactions with federal public bonds deposited in Selic, the constitution of voluntary time deposits, and the relationship with Demab.

§ 1º In the performance evaluation referred to in the caput, transactions conducted by Demab and those carried out with federal public bonds under competitive conditions with other market participants will be considered, excluding those contracted with institutions of the same financial conglomerate or with financial investment funds, or similar entities, administered by any institution belonging to said conglomerate.

§ 2º The Central Bank of Brazil will establish a scoring system for calculating the performance evaluation referred to in the caput.

§ 3º Institutions already accredited to operate as a dealer will also be subject to the performance evaluation referred to in the caput, which may result in their de-accreditation.

§ 4º Repo transactions defined in Art. 10 will not be counted for the purpose of the performance evaluation of dealer institutions referred to in the caput.

CHAPTER IV

ACREDITATION AND DE-ACREDITATION

Art. 5. The Central Bank of Brazil will accredit up to twelve (12) financial institutions to operate as dealers with Demab and may allocate up to two (2) slots from this group to independent brokers or distributors, defined as those not belonging to a financial conglomerate with a banking institution.

Sole Paragraph. Regarding institutions belonging to the same financial conglomerate, only the one with the best evaluation may be accredited to operate as a dealer.

Art. 6. On each accreditation date:

I - the three (3) dealer institutions with the worst evaluation will be de-accredited, one of which being an independent broker or distributor; and

II - the best-evaluated institutions will be accredited in a number that respects the group of dealer institutions defined in Art. 5.

Art. 7. The accreditation of an institution to operate as a dealer, under the terms of this Resolution, will be granted on a precarious basis, and the Central Bank of Brazil may, at any time, respecting due process and the right to defense, exclude it from the group of dealers, accrediting or not another institution.

§ 1º In cases where the Central Bank of Brazil, at its discretion, identifies the presence of serious indiscipline, reputational risk for the Autarchy, or hindrance to transactions conducted by Demab, the precautionary suspension of the institution may be promoted, immediately preventing its operation as a dealer.

§ 2º In the event of late accreditation, the Central Bank of Brazil will observe the classification of institutions obtained in the last evaluation period.

Art. 8. The Central Bank of Brazil will publish, on its website, the updated list of institutions accredited to operate as dealers with Demab.

CHAPTER V

DUTIES

Art. 9. Any institution accredited to operate as a dealer, under the terms of this Resolution, must:

I - have active and balanced participation in transactions conducted by Demab;

II - give priority attention to routine or special contacts from Demab;

III - keep Demab constantly informed about occurrences that may directly or indirectly have repercussions on the financial market;

IV - provide Demab daily or whenever requested with information on its operational activities and situational analyses, ensuring such information is treated confidentially, in accordance with the law; and

V - disseminate the actions of Demab's trading desk to other market institutions.

CHAPTER VI

ACCESS TO COUPLED REPO TRANSACTIONS

Art. 10. Any institution accredited to operate as a dealer may carry out coupled repo transactions, in which the Central Bank of Brazil will execute a repo sale transaction of bonds from its portfolio, with a resale commitment assumed by the dealer institution, coupled with a repo purchase transaction of other bonds by the Central Bank of Brazil, with a repurchase commitment assumed by the dealer institution.

Art. 11. Demab will disclose the specific conditions of the transactions referred to in Art. 10, through a communication or directly to dealer institutions, in accordance with Art. 5 of BCB Resolution No. 75, of February 23, 2021.

CHAPTER VII

FINAL PROVISIONS

Art. 12. The accreditation of February 10, 2022, will be implemented in accordance with the provisions of Circular No. 3,746, of January 27, 2015.

Art. 13. Demab is authorized to adopt the necessary measures for the execution of the provisions of this Resolution.

Art. 14. The following are revoked:

I - Circular No. 3,107, of April 10, 2002; and

II - Circular No. 3,746, of 2015, effective February 10, 2022.

Art. 15. This Resolution enters into force on February 1, 2022.

Bruno Serra Fernandes
Monetary Policy Director