Circular No. 3252 — Establishes procedures for accounting registration of repurchase operations with free movement agreement and creates, maintains, alters and excludes titles and subtitles in Cosif

CIRCULAR NO. 003252

Establishes procedures for accounting registration of repurchase operations with free movement agreement and creates, maintains, alters and excludes titles and subtitles in Cosif.

The Collegiate Board of the Central Bank of Brazil, in a session held on August 24, 2004, based on Articles 9 and 10, item IX, of Law No. 4,595 of December 31, 1964, as renumbered by Law No. 7,730 of January 31, 1989, and on Article 33 of Law No. 8,177 of March 1, 1991, and considering the provisions of Resolutions No. 2,950 of April 17, 2002, No. 3,054 of December 19, 2002, and No. 3,171 of February 19, 2004,

DECIDED:

Art. 1. Create, in the Accounting Plan of the Institutions of the National Financial System - Cosif, the following sub-group breakdowns, titles and subtitles:

I - with the attributes UBDIFCTLMZ and codes ESTBAN and publication 120 and 121, respectively:

1.2.1.30.90-6 Other Fixed Income Titles;

II - with the attributes UBDIFCTLMZ and codes ESTBAN and publication 130 and 136, respectively:

1.3.7.00.00-5 Titles Subject to Repurchase Operations with Free Movement 1.3.7.10.00-2 TITLES SUBJECT TO REPURCHASE OPERATIONS WITH FREE MOVEMENT 1.3.7.10.02-6 Federal Public Titles - National Treasury 1.3.7.10.04-0 Federal Public Titles - Central Bank 1.3.7.10.90-9 Other Fixed Income Titles;

III - with the attributes UBDKIFJACTSWERLMNHZ and code ESTBAN 300:

3.0.6.35.00-5 TITLES RECEIVED AS COLLATERAL IN REPURCHASE OPERATIONS WITH FREE MOVEMENT 3.0.6.35.02-9 Federal Public Titles - National Treasury 3.0.6.35.04-3 Federal Public Titles - Central Bank 3.0.6.35.25-6 Titles Issued by Financial Institutions 3.0.6.35.30-4 Titles Issued by Linked Financial Institutions 3.0.6.35.40-7 Bills of Exchange, Mortgage Notes, Letters and Real Estate Credit Certificates and Real Estate Receivable Certificates 3.0.6.35.90-2 Other Fixed Income Titles;

IV - with the attributes UBDKIFJACTSWERLMNHZ and codes ESTBAN and publication 433 and 423, respectively:

4.2.3.30.90-3 Other Fixed Income Titles;

V - with the attributes UBDIFCTLMZ and codes ESTBAN and publication 433 and 423, respectively:

4.2.3.40.90-0 Other Fixed Income Titles;

VI - with the attributes UBDIFCTLMZ and codes ESTBAN and publication 711 and 715, respectively:

7.1.4.10.40-9 Sold Position;

VII - with the attributes UBDKIFJACTSWERLMNHZ and codes ESTBAN and publication 712 and 812, respectively:

8.1.1.50.40-5 Free Movement Portfolio;

VIII - with the attributes UBDKIFJACTSWERLMNHZ and code ESTBAN 800:

9.0.6.35.00-7 REPURCHASE OPERATIONS WITH FREE MOVEMENT - TITLES RECEIVED AS COLLATERAL.

Sole Paragraph. The following are the functions for the accounting titles referred to in this article:

I - TITLES SUBJECT TO REPURCHASE OPERATIONS WITH FREE MOVEMENT, code 1.3.7.10.00-2, to register the titles and securities delivered as collateral in repurchase operations with free movement agreement;

II - TITLES RECEIVED AS COLLATERAL IN REPURCHASE OPERATIONS WITH FREE MOVEMENT, code 3.0.6.35.00-5, to register the titles and securities received as collateral in repurchase operations with free movement agreement, with the corresponding title REPURCHASE OPERATIONS WITH FREE MOVEMENT - TITLES RECEIVED AS COLLATERAL, code 9.0.6.35.00-7.

Art. 2. When carrying out repurchase operations with free movement agreement, the following accounting procedures must be observed:

I - by the seller: reclassify the title delivered as collateral for the operation from the sub-group breakdown Free, code 1.3.1.00.00-7, to the adequate accounting subtitle of the item TITLES SUBJECT TO REPURCHASE OPERATIONS WITH FREE MOVEMENT, code 1.3.7.10.00-2;

II - by the buyer:

a) register the titles subject to the operation in the adequate subtitle of the item TITLES RECEIVED AS COLLATERAL IN REPURCHASE OPERATIONS WITH FREE MOVEMENT, code 3.0.6.35.00-5;

b) register, upon definitive sale of the title, a liability regarding the obligation to return the title in the item OBLIGATIONS LINKED TO REPURCHASE OPERATIONS WITH FREE MOVEMENT TITLES, code 4.2.3.40.00-3, evaluated at the market value of the title;

c) variations in the market value of the title that increase the liability balance must be recognized as expenses of repurchase operations in the subtitle Free Movement Portfolio, code 8.1.1.50.40-5, and those that reduce the liability balance, as revenues of repurchase operations in the subtitle Sold Position, code 7.1.4.10.40-9, with positive and negative variations being offset, provided they are within the same semester and relate to the same operation;

d) reclassify, upon definitive sale of the title, the repurchase operation from the item RESALES TO SETTLE - BANKED POSITION, code 1.2.1.10.00-5, or RESALES TO SETTLE - CLEARING AND SETTLEMENT CHAMBERS - GENERIC OPERATIONS, code 1.2.1.35.00-4, in the latter case through a counter account of an internal-use subtitle, to the adequate accounting subtitle of the item RESALES TO SETTLE - SOLD POSITION, code 1.2.1.30.00-9.

Art. 3. The following sub-group breakdowns, titles and subtitles are maintained in Cosif:

1.2.1.30.00-9 RESALES TO SETTLE - SOLD POSITION 1.2.1.30.02-3 Federal Public Titles - National Treasury 1.2.1.30.04-7 Federal Public Titles - Central Bank 1.2.1.35.00-4 RESALES TO SETTLE - CLEARING AND SETTLEMENT CHAMBERS - GENERIC OPERATIONS 4.2.3.00.00-5 Free Movement Portfolio 4.2.3.30.00-6 REPURCHASES TO SETTLE - FREE MOVEMENT 4.2.3.30.02-0 Federal Public Titles - National Treasury 4.2.3.30.04-4 Federal Public Titles - Central Bank 4.2.3.35.00-1 REPURCHASES TO SETTLE - CLEARING AND SETTLEMENT CHAMBERS - GENERIC REPURCHASE OPERATIONS 4.2.3.40.00-3 OBLIGATIONS LINKED TO REPURCHASE OPERATIONS WITH FREE MOVEMENT TITLES 4.2.3.40.02-7 Federal Public Titles - National Treasury 4.2.3.40.04-1 Federal Public Titles - Central Bank.

§ 1. A repurchase operation with free movement clause is characterized as "generic" when the securities serving as collateral for the transaction are determined based on the net financial value of the operations carried out on the day, by the clearing house or settlement and clearing service provider, among a set of different types of titles accepted in this modality.

§ 2. The functions of the accounting titles RESALES TO SETTLE - SOLD POSITION and OBLIGATIONS LINKED TO REPURCHASE OPERATIONS WITH FREE MOVEMENT TITLES are now:

I - RESALES TO SETTLE - SOLD POSITION, code 1.2.1.30.00-9, to register the commitments to resell titles traded in repurchase operations with free movement agreement, whose titles received as collateral have been sold definitively;

II - OBLIGATIONS LINKED TO REPURCHASE OPERATIONS WITH FREE MOVEMENT TITLES, code 4.2.3.40.00-3, to register the obligations regarding the commitment to return titles received as collateral in repurchase operations with free movement agreement, upon definitive sale of these titles, evaluated at the market value of the titles.

Art. 4. The following attributes are included in the following accounting titles:

I - Z in the accounting title INCOME FROM APPLICATIONS IN REPURCHASE OPERATIONS, code 7.1.4.10.00-7;

II - DKJASWRNHZ in the accounting title EXPENSES OF REPURCHASE OPERATIONS, code 8.1.1.50.00-3.

Art. 5. The following titles and subtitles are excluded from Cosif:

1.2.1.35.02-8 Federal Public Titles - National Treasury 1.2.1.35.04-2 Federal Public Titles - Central Bank 1.2.1.40.00-6 RIGHTS LINKED TO REPURCHASE OPERATIONS WITH FREE MOVEMENT TITLES 1.2.1.40.02-0 Federal Public Titles - National Treasury 1.2.1.40.04-4 Federal Public Titles - Central Bank 1.3.1.93.00-7 TITLES WITH FREE MOVEMENT CLAUSE - CLEARING AND SETTLEMENT CHAMBERS - GENERIC REPURCHASE OPERATIONS 1.3.1.93.02-1 Federal Public Titles - National Treasury 1.3.1.93.04-5 Federal Public Titles - Central Bank 1.3.2.30.00-1 TITLES WITH FREE MOVEMENT CLAUSE - CLEARING AND SETTLEMENT CHAMBERS - GENERIC REPURCHASE OPERATIONS 1.3.2.30.02-5 Federal Public Titles - National Treasury 1.3.2.30.04-9 Federal Public Titles - Central Bank 4.2.3.35.02-5 Federal Public Titles - National Treasury 4.2.3.35.04-9 Federal Public Titles - Central Bank

Sole Paragraph. Balances possibly existing in the excluded accounting titles and subtitles must be reclassified to the adequate accounting items representing the rights and obligations of the respective operations.

Art. 6. The following changes must be made to document 2 of Cosif, Trial Balance/Balance Sheet:

I - inclusion of the item Titles Subject to Repurchase Operations with Free Movement, aggregation code 136, after the item Linked to Provision of Guarantees, aggregation code 134;

II - maintenance of the item Free Movement Portfolio, aggregation code 423.

Art. 7. The following adjustments must be observed in the Consolidated Economic-Financial Statement - Conef, document 5 of Cosif:

I - inclusion of the following items:

10.3.7.00.00-1 Titles Subject to Repurchase Operations with Free Movement 10.3.7.10.00-8 TITLES SUBJECT TO REPURCHASE OPERATIONS WITH FREE MOVEMENT;

II - exclusion of the following titles:

10.2.1.40.00-2 RIGHTS LINKED TO REPURCHASE OPERATIONS WITH FREE MOVEMENT TITLES 10.3.1.93.00-3 TITLES WITH FREE MOVEMENT CLAUSE - CLEARING AND SETTLEMENT CHAMBERS - GENERIC REPURCHASE OPERATIONS 10.3.2.30.00-7 TITLES WITH FREE MOVEMENT CLAUSE - CLEARING AND SETTLEMENT CHAMBERS - GENERIC REPURCHASE OPERATIONS;

III - maintenance of the following titles and sub-group breakdown:

10.2.1.30.00-5 RESALES TO SETTLE - SOLD POSITION 10.2.1.35.00-0 RESALES TO SETTLE - CLEARING AND SETTLEMENT CHAMBERS - GENERIC OPERATIONS 40.2.3.00.00-9 Free Movement Portfolio.

Art. 8. The following aggregations must be made in document Annex II to Circular No. 2,918 of June 15, 2000:

I - title 1.2.1.30.00-9 into 10.2.1.30.00-5;

II - title 1.2.1.35.00-4 into 10.2.1.35.00-0;

III - title 1.3.7.10.00-2 into 10.3.7.10.00-8;

IV - sub-group breakdown 4.2.3.00.00-5 into 40.2.3.00.00-9.

Art. 9. This circular enters into force on the date of its publication.

Art. 10. Circular No. 3,222 of February 5, 2004 is revoked.

Brasília, August 25, 2004.

Sérgio Darcy da Silva Alves
Director

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Obs.: retransmitted due to inclusion of item in Art. 7, item I.