Circular No. 3746 — Establishes Requirements for Institutions Accredited to Operate as Dealers with the Open Market Operations Department (Demab)

The Collegiate Board of the Central Bank of Brazil, in a session held on January 22, 2015, based on Article 10, item XII, of Law No. 4,595, of December 31, 1964,

R E S O L V E:

Art. 1. The prerequisites for accrediting an institution to operate as a dealer with the Open Market Operations Department (Demab) are:

I - reference equity of at least BRL 26,250,000.00 (twenty-six million two hundred and fifty thousand reais);

II - high ethical standard of conduct in operations carried out in the financial market; and

III - absence of restrictions that, at the discretion of the Central Bank of Brazil, discourage accreditation.

Art. 2. Institutions accredited to operate as dealers with the Demab will be selected through a performance evaluation, conducted with a frequency not exceeding twelve months, which will take into consideration, primarily, their operations with federal public bonds registered in the Special Settlement and Custody System (Selic).

§ 1. The performance evaluation referred to in this article will comprise solely operations carried out under competitive conditions, excluding those contracted with institutions of the same financial conglomerate or with financial investment funds, or similar entities, administered by any institution integrated into the said conglomerate.

§ 2. Regarding institutions belonging to the same financial conglomerate, only the one that achieves the highest score may be accredited to operate as a dealer.

§ 3. Institutions that are already qualified to operate as a dealer will also be subject to the performance evaluation referred to in this article, which may result in their de-accreditation.

Art. 3. The accreditation of an institution to operate as a dealer, under the terms of this Circular, is granted on a precarious basis, and the Central Bank of Brazil may, at any time, exclude it from the group of dealers, accrediting or not another institution.

Art. 4. Every institution accredited to operate as a dealer, under the terms of this Circular, must:

I - have active and balanced participation in the operations carried out by the Demab;

II - give priority attention to routine or special contacts from the Demab;

III - keep the Demab constantly informed regarding occurrences that may, directly or indirectly, have repercussions on the financial market;

IV - provide the Demab, daily or whenever requested, with information about its operational activities and situational analyses, ensuring that such information is treated confidentially, in accordance with the law; and

V - disseminate the activities of the Demab trading desk to other institutions in the market.

Art. 5. The Demab is authorized to issue complementary regulations and adopt the necessary measures for the execution of this Circular.

Art. 6. This Circular enters into force on the date of its publication, producing effects from August 10, 2015.

              Aldo Luiz Mendes  
                     Director of Monetary Policy