Circular No. 3.437

CIRCULAR N. 003437 ------------------ Amends art. 8 of the regulation annexed to Circular No. 3.057, of 31 August 2001. The Board of Governors of the Central Bank of Brazil, in a session held on 12 February 2009, having regard to the provisions of art. 10 of Law No. 10.214, of 27 March 2001, and art. 11 of Resolution No. 2.882, of 30 August 2001, D E C I D E D: Art. 1 The art. 8 of the Regulation Annexed to Circular No. 3.057, of 31 August 2001, shall henceforth have the following wording: "Art. 8 The following are considered systemically important by the Central Bank of Brazil: I - the systems for settling transactions with securities, securities, financial derivatives and foreign currencies, regardless of the individual value of each transaction and the daily financial turnover; II - the systems for settling transfers of funds and other interbank obligations not related to the transactions referred to in item I, which fall under at least one of the situations indicated below: a) existence of an average daily financial turnover greater than 4% (four percent) of the average daily financial turnover of the Reserve Transfer System - STR; b) possibility that the effects of a participant's default on other participants (contagion effect), in deferred settlement systems that use multilateral netting, at the discretion of the Central Bank of Brazil, place at risk the fluidity of payments within the Brazilian Payment System. § 1 For the purposes of the provisions of subitem "a" of item II, the average daily financial turnover is calculated: I - by taking the thirty largest positions observed in the six months prior to the month of assessment; and II - disregarding, in the case of the STR, movements in which the sender and beneficiary are the same financial institution. § 2 In the situations referred to in item II of the caput: I - the assessment shall be made monthly; and II - the Central Bank of Brazil shall grant a period of up to six months, counted from the month following the assessment, for the clearinghouse or the clearing and settlement service provider to make the necessary adaptations resulting from the classification of the system operating as systemically important. § 3 In the situation referred to in subitem "a" of item II of the caput: I - the expected movement for the first two complete calendar half-years of operation shall be considered, in the case of systems starting operation; and II - the Central Bank of Brazil may maintain the classification of a system as non-systemically important if, at its sole discretion, the financial turnover observed in a given period, which would justify classification as systemically important, is considered abnormal and with little possibility of recurring in subsequent periods." (NR) Art. 2 The Central Bank of Brazil shall disclose the methodology that will be observed in the analysis of the contagion effect, referred to in art. 8, item II, subitem "b", of the Regulation Annexed to Circular No. 3.057,
of 2001. Art. 3 This circular enters into force as of 1 January 2009. São Paulo, 13 February 2009. Mario Torós Director