Circular No. 2583 — Establishes the requirement to publish information regarding operations in derivatives markets and clarifies the provisions of Article 5 of Resolution No. 2,138 of December 29, 1994

CIRCULAR NO. 002583

Establishes the requirement to publish information regarding operations carried out in derivatives markets and clarifies the provisions of Article 5 of Resolution No. 2,138 of December 29, 1994.

The Board of Directors of the Central Bank of Brazil, in a session held on June 21, 1995, based on Article 4, item XII, of Law No. 4,595 of December 31, 1964, by competence delegated by the National Monetary Council by act of July 19, 1978, and having in view the provisions of Resolution No. 2,138 of December 29, 1994,

DECIDED:

Art. 1 Multiple banks, commercial banks, investment banks, securities brokerage firms, and securities distribution companies must, upon the publication of their monthly financial statements, highlight, in a specific note complementary to these statements, the net and gross values of positions held in the forward, futures, and options markets and in "swap" operations on the respective base date.

Art. 2 For the purpose of proving the use of the risk management model referred to in Article 5 of Resolution No. 2,138 of December 29, 1994, a declaration signed by the administrator responsible for the derivatives area must be sent to the Regional Directorate under whose jurisdiction the institution falls, stating that the adopted model provides conditions for the timely monitoring of the risks involved in its operations.

Art. 3 The administrator referred to in the previous article, responsible to the Central Bank of Brazil, in accordance with Article 2 of Resolution No. 2,138 of December 29, 1994, for the conduct of the operations regulated therein, must be a statutory member of the institution's board of directors.

Sole Paragraph. The administrator mentioned in this article is identically responsible, towards third parties, for the conduct of the aforementioned operations.

Art. 4 This Circular enters into force on the date of its publication.

Brasília, June 21, 1995

Cláudio Ness Mauch
Director of Norms and Organization of the
Financial System