Circular No. 3139 — Provisions on the Sale of Federal Public Debt Securities Options to be Launched by the Central Bank of Brazil

CIRCULAR NO. 003139

Dispenses on sale options of federal public debt securities to be launched by the Central Bank of Brazil.

The Collegiate Board of the Central Bank of Brazil, in a session held on July 31, 2002, having regard to the provisions of Resolution 3,006, of July 30, 2002,

DECIDED:

Art. 1 The sale options of federal public debt securities to be launched by the Central Bank of Brazil shall observe the following characteristics:

I - subject matter of the option: federal public debt securities custodied in the Special Settlement and Custody System (Selic);

II - trading unit: each option refers to one federal public debt security;

III - exercise price: previously established by the Central Bank of Brazil for the event;

IV - option maturity date: previously established by the Central Bank of Brazil for the event;

V - exercise: only on the option maturity date, with financial and securities settlement on the business day following the exercise.

Sole Paragraph. For the purposes of this Circular, a sale option of federal public debt security is considered the right granted to its holder to sell, if desired, to the Central Bank of Brazil the security, subject of the option, at the exercise price and on the established date.

Art. 2 The operations with the sale options referred to in the previous article shall be contracted through a public offering to be ascertained by the complementary module of Selic "Electronic Formal Public Offering" (Ofpub), provided for in the Selic Regulation approved by Circular 3,108, of April 10, 2002.

Art. 3 The sale options governed by this Circular shall be registered in Selic and may be traded by their holders until the business day preceding the exercise.

Sole Paragraph. The registration and settlement of the operations with the sale options are subject, where applicable, to the provisions of the Selic Regulation, approved by Circular 3,108, of 2002.

Art. 4 The Department of Open Market Operations (Demab) shall conduct the operations mentioned in Art. 2 and shall adopt the measures deemed necessary for the execution of the provisions of this Circular, specifying, inter alia, the federal public debt securities that will constitute the subject matter of the option.

Art. 5 This Circular enters into force on the date of its publication.

Brasilia, July 31, 2002

Luiz Fernando Figueiredo
Director