CMN Resolution No. 2912 on the Registration and Financial Settlement of Repo Operations and Registration of Underlying Securities

RESOLUTION NO. 002912

Dispenses with the registration and financial settlement of repo operations and regarding the registration of the securities subject to these operations.

THE CENTRAL BANK OF BRAZIL, in accordance with Article 9 of Law No. 4,595 of December 31, 1964, makes public that the NATIONAL MONETARY COUNCIL, in a session held on December 18, 2001, based on Article 4, items VI, VIII, IX, and XXI of the aforementioned law and Articles 9, 10, 14, and 29 of Law No. 4,728 of July 14, 1965,

RESOLVED:

Article 1. Establish that repo operations may be registered and financially settled in the Special Settlement and Custody System - Selic or in systems for registration and financial settlement of assets authorized by the Central Bank of Brazil.

Sole Paragraph. The securities subject to repo operations must be registered in Selic or in the systems referred to in this article.

Article 2. The following provisions are amended, consequently, of the Regulation annexed to Resolution No. 2,675 of December 21, 1999, which shall henceforth have the following wording:

I - Article 1, paragraph 2:

"Article 1. The following types of operations and commitments involving fixed-income securities are subject to the provisions of this Regulation:
......

Paragraph 2. Repo operations must be registered in the Special Settlement and Custody System - Selic or in a system for registration and financial settlement of assets authorized by the Central Bank of Brazil.
......" (NR);

II - Article 2, main text:

"Article 2. Repo operations may exclusively involve the following securities, duly registered in Selic or in a system for registration and financial settlement of assets authorized by the Central Bank of Brazil:
......" (NR);

III - Article 10, items I and II, letter 'b':

"Article 10. For the purpose of operational limits, the following are not computed:

I -......

b) the financial settlement of purchase operations with commitment to resell and sale operations with commitment to repurchase, whether processed by Selic or by a system for registration and financial settlement of assets authorized by the Central Bank of Brazil;

II -......

b) the total financial values of purchase operations with commitment to resell and sale operations with commitment to repurchase must appear in the transfer documents processed by Selic or by a system for registration and financial settlement of assets authorized by the Central Bank of Brazil;

......" (NR);

IV - Article 12, items I and III:

"Article 12. Regardless of qualification under the terms of Article 5, the institutions referred to therein may intermediate repo operations, assuming commitments to repurchase, resell, and forward purchase and sale, observing the following conditions:

I - commitments to repurchase, resell, and forward purchase and sale must relate to commitments to resell, repurchase, and forward sale and purchase of the same securities (type, issuer, maturity, quantity, and remuneration basis), concluded on the same day, with the same future settlement date, and registered simultaneously in Selic or in a system for registration and financial settlement of assets authorized by the Central Bank of Brazil;

......

III - the financial settlement of commitments to resell, repurchase, and forward sale and purchase assumed with institutions qualified to carry out repo operations must be processed by Selic or by a system for registration and financial settlement of assets authorized by the Central Bank of Brazil;

......" (NR);

V - Article 15:

"Article 15. The institutions referred to in Article 5, which do not have an individualized account in Selic and in a system for registration and financial settlement of assets authorized by the Central Bank of Brazil, may only carry out repo operations under the terms of Article 12." (NR)

Article 3. The Central Bank of Brazil is authorized to adopt the measures and issue the regulations deemed necessary for the execution of the provisions of this Resolution.

Article 4. This Resolution enters into force on the date of its publication.

Brasília, December 19, 2001

Arminio Fraga Neto
President