Circular No. 1430 — Decision Not to Count Repurchase Commitments for Operational Limits of Institutions Authorized to Conduct Repo Operations

CIRCULAR NO. 001430

We communicate that the Board of Directors of the Central Bank of Brazil, in a session held on 18.01.89, in view of the provisions of Articles 24 and 30 of the Regulation annexed to Resolution No. 1,088, of 30.01.86, decided that repurchase commitments arising from transactions with the institution's own clients, which served as collateral (securities of the same type, issuer, maturity, and quantity) for resale agreements assumed by the same institution, for the same future settlement date, as referred to in Article 20 of the aforementioned Regulation, will not be counted for the purpose of the operational limits of institutions authorized to conduct repo operations, observed, furthermore, that:

a) the use of this option will be limited to the total financial value of the corresponding resale agreements;

b) purchase operations with resale commitment and sale operations with repurchase commitment must be registered in the Special Settlement and Custody System (SELIC) or in the Securities Custody and Financial Settlement Center (CETIP), as well as the respective total financial values must appear in the transfer documents processed by the aforementioned systems.

2. This Circular will enter into force on the date of its publication.

Brasília-DF, January 20, 1989

Keyler Carvalho Rocha Wadico Waldir Bucchi Director Director

Carlos Thadeu de Freitas
Gomes
Director