Circular No. 3.971

The Collegiate Board of the Central Bank of Brazil, at a meeting held on 4 December 2019, having regard to the provisions of art. 11, item VII, of Law No. 4.595, of 31 December 1964, and art. 10 of Law No. 10.214, of 27 March 2001,

R E S O L V E S :

Art. 1 The Regulation of the Special Settlement and Custody System (Selic), annexed to Circular No. 3.587, of 26 March 2012, shall henceforth be in force with the following amendments:

“Art. 38. The registration of a transaction on a date later than the one on which it was carried out is permitted only for the purchase with a commitment to resell and for the sale with a commitment to repurchase, in the form of item IV of art. 25, contracted by:

• I - fund client with its administrator;

• II - fund client with a settling participant; and

• III - fund administrator, if a non-settling participant, with a settling participant to remedy any imbalance arising from the carrying out of the transaction referred to in item I.

Sole paragraph. The registration on a later date of transactions whose object is securities already redeemed, of transactions with financial settlement through the STR, of transactions with same-day repurchase/resale, of transactions with intermediation and of combined or associated transactions, provided for in arts. 74 to 78, is prohibited.” (NR)

“Art. 39. The commands referred to in Chapter VI, for the registration on a later date of a transaction, must be transmitted on the business day following the one on which the transaction was carried out, by the time defined by Demab.

Sole paragraph. When transmitted on the very day of maturity of the commitment, the commands referred to in the caput authorize the registration and settlement of the committed transaction and of the respective repurchase/resale.” (NR)

Art. 2 The Open Market Operations Department (Demab) is authorized to specify the deadlines for the execution of the transactions referred to in this Circular.

Art. 3 The following provisions of the Regulation annexed to Circular No. 3.587, of 2012, are revoked:

• I - items I and II of art. 39; and

• II - arts. 38 and 39.

Art. 4 This Circular enters into force on the date of its publication, producing effects as of 2 January 2020, except for art. 3, item II, which shall produce effects as of 1 July 2021.

Bruno Serra Fernandes Director of Monetary Policy