Normative Instruction BCB No. 466 — Discloses criteria for accreditation and deaccreditation of dealer institutions operating with the Department of International Reserves (Depin)

Resolution No. 222

NORMATIVE INSTRUCTION
BCB No. 466, OF APRIL 18, 2024

Discloses criteria for accreditation and deaccreditation of dealer institutions that will operate with the Department of International Reserves (Depin).

The Head of the Department of International Reserves, using the powers conferred upon him by art. 23, item I, clause "a", of the Internal Regulations of the Central Bank of Brazil, annexed to Resolution BCB No. 340, of September 21, 2023, and based on the provisions of Resolution BCB No. 76, of February 23, 2021,

R E S O L V E S:

Art. 1. The purchase and sale operations of foreign currency by the Central Bank of Brazil, in the interbank market, will be carried out by the Department of International Reserves (Depin) exclusively with institutions accredited for this purpose (dealers), in the following modalities:

I - public offer via computerized system - electronic auction;

II - telephone auction system;

III - direct contracting; or

IV - negotiation via electronic platform.

Sole paragraph. In the impossibility of acting through the procedures referred to in the caput, at the discretion of the Central Bank of Brazil, other procedures may be used, such as electronic mail (e-mail).

Art. 2. Dealers will be selected among institutions authorized to operate in the foreign exchange market. Accreditation is limited to one institution per financial conglomerate, through a performance evaluation carried out based on the calculation of a weighted average of the following items:

I - relationship with the exchange desk of the Central Bank of Brazil - a score will be assigned, with a weight of 3.0, to evaluate the quality of information provided to the exchange desk and the prompt response to operational and technological demands;

II - participation in foreign exchange auctions and foreign exchange swaps - a score will be assigned, with a weight of 2.0, based on the volume and quality of proposals presented;

III - participation in consultations for the formation of Ptax - a score will be assigned, with a weight of 2.0, according to the deviation of the quotes provided in relation to the final rate of each consultation;

IV - interbank market - a score will be assigned, with a weight of 1.0, to measure the relative performance of the dealer according to the volume traded in the interbank foreign exchange market;

V - import, export and financial exchange - a score will be assigned, with a weight of 2.0, to measure the relative performance of the dealer according to the volume of operations traded in the primary foreign exchange market.

Sole paragraph. The evaluation period referred to in the caput of this article will be 12 (twelve) months, covering the months of May of the current year to April of the following year.

Art. 3. To be accredited as a dealer, the institution that comes to be classified by performance must also satisfy the following criteria:

I - have been in operation for at least 3 (three) years;

II - enjoy a good economic-financial situation and capitalization;

III - maintain normal operational behavior;

IV - no restriction or reservation exists with the Central Bank of Brazil that, at its exclusive discretion, discourages the accreditation of the institution.

Art. 4. The Central Bank of Brazil will accredit up to 20 (twenty) institutions as foreign exchange dealers in each accreditation period.

Art. 5. The validity period of each dealer accreditation will be 12 (twelve) months, covering the months of June of the current year to May of the following year.

Art. 6. In each new period, up to 2 (two) dealers may be replaced, with the set of dealers to be accredited for the period being chosen among the remaining dealer institutions and non-dealer institutions, according to the provisions of art. 2 of this BCB Normative Instruction.

Art. 7. At the beginning of each accreditation period, the Central Bank of Brazil will publish on its website the list of accredited dealers, in order of classification, and the respective score obtained in the evaluation period cited in art. 2.

§ 1. Monthly, individual scores calculated according to the criteria related in art. 2 will be made available to each dealer.

§ 2. Performance statistics in responding to consultations for the formation of Ptax may be requested at any time by dealers.

Art. 8. The Central Bank of Brazil will publish on its website, each month, the list of accredited dealers, in order of classification, and the respective score obtained in the evaluation carried out up to the immediately preceding month, within the evaluation period.

Art. 9. Institutions accredited as dealers must:

I - provide the Central Bank of Brazil with information on the factors determining the foreign exchange market;

II - participate in compulsory foreign exchange auctions promoted by the Central Bank of Brazil;

III - quote, whenever requested, buying and selling rates of foreign currencies;

IV - be able to use all the negotiation modalities cited in art. 1;

V - provide liquidity to the foreign exchange market;

VI - provide the Central Bank of Brazil, daily, with information on their operational activities, which will receive strictly confidential treatment;

VII - participate in meetings previously convened by the Central Bank of Brazil; and

VIII - respond to consultations for the formation of Ptax.

§ 1. Non-compliance with the contents of items I to VIII of this article will result, according to the level of recurrences during the evaluation period, in a warning, suspension, or loss of dealer status and the right to qualify for the next accreditation period.

§ 2. During the evaluation period, the rates sent in the consultations cited in item VIII of this article will be evaluated in relation to the percentage of exclusion from the Ptax calculation and to the rates in the bulletins. Dealers whose rates are excluded in more than 50% of the consultations will be warned and may be suspended, deaccredited, or lose the right to qualify for the next accreditation period.

Art. 10. The accreditation of the institution does not generate any right of permanence in this condition, and the Central Bank of Brazil may, at any time and at its exclusive discretion, promote changes in the group of dealers.

Art. 11. Factors for deaccreditation of an institution, using or not the status of dealer, among others, include practices aimed at dominating, manipulating, or imposing conditions that lead to the artificial formation of prices, as well as the use of other methods that, in the evaluation of the Central Bank of Brazil, contradict regular and healthy market practices.

Art. 12. Accreditation and deaccreditation will be communicated by telephone or by e-mail, and the institution must manifest itself through the same channel, within the period stipulated in the communication.

Art. 13. The institution's agreement to be accredited as a dealer of the Central Bank of Brazil will imply the express acceptance of the conditions established in this BCB Normative Instruction.

Art. 14. This BCB Normative Instruction enters into force on June 1, 2024, and from that date, BCB Normative Instruction 227, of January 11, 2022, is revoked.

ALAN DA SILVA ANDRADE
MENDES