Circular N° 3.774

The Board of Directors of the Central Bank of Brazil, in a session held on 1 December 2015, based on the provisions of Articles 9, 10, item IX, and 11, item VII, of Law No. 4,595 of 31 December 1964, and Articles 3, § 2, and 15 of Resolution No. 4,193 of 1 March 2013,

R E S O L V E S :

Article 1 Articles 20, 21, 23, 34, 35 and 37 of Circular No. 3,644 of 4 March 2013 shall be in force with the following wording:

“Article 20. An FPR of 2% (two percent) shall be applied to exposures arising from transactions to be settled in settlement systems of chambers or clearing and settlement service providers, in which an entity acts as a central counterparty and meets the following characteristics:

• I - is authorized by the Central Bank of Brazil, pursuant to Law No. 10,214 of 27 March 2001 and the regulations in force;

• II - is subject to regulations consistent with the principles established by the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO); or

• III - is recognized as qualified by the Central Bank of Brazil, pursuant to Circular No. 3,772 of 1 December 2015.

§ 1 It is the institution's responsibility to document compliance with the provisions of item II of the main section.

§ 2 The treatment provided for entities mentioned in item II of the main section does not apply:

• I - to central counterparties whose recognition as qualified has already been denied by the Central Bank of Brazil, pursuant to Article 3 of Circular No. 3,772 of 2015; and

• II - to other central counterparties domiciled in the jurisdiction where the entities referred to in item I of this paragraph are incorporated or authorized to carry out their activities.” (NR)

“Article 21. .......................................................

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• VII - credit transactions with a maturity of up to three months carried out with entities that operate financial market infrastructures domiciled abroad and subject to regulations consistent with the principles established by the CPMI and the IOSCO and contracted in:

  • a) national currency; or

  • b) local currency, in each of the countries referred to in Article 19, item VII;

............................................................” (NR)

“Article 23. .......................................................

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• IV - credit transactions carried out with entities that operate financial market infrastructures domiciled abroad and subject to regulations consistent with the principles established by the CPMI and the IOSCO;

............................................................” (NR)

“Article 34. .......................................................

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Sole paragraph. The amounts TEi and DFi mentioned in the main section must be calculated by entity "i" mentioned in Article 20.” (NR)

“Article 35. .......................................................

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§ 1 ............................................................

• I - to be settled in settlement systems of chambers or clearing and settlement service providers, in which an entity acts as a central counterparty;

............................................................” (NR)

“Article 37. .......................................................

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§ 7 ............................................................

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• VI - entities mentioned in items III and IV of Article 23.

............................................................” (NR)

Article 2 This Circular shall enter into force on the date of its publication.

Anthero de Moraes Meirelles Director of Regulation, acting