Resolution CMN No. 3824 — Provisions on the registration of financial derivative instruments contracted by financial institutions abroad

RESOLUTION NO. 003824

Provisions on the registration of financial derivative instruments contracted by financial institutions abroad.

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 16, 2009, based on the provisions of Article 4, items VIII and XXXI, of the aforementioned law,

RESOLVES:

Art. 1 Financial institutions and other institutions authorized to operate by the Central Bank of Brazil must register in a system administered by an entity for the registration and settlement of financial assets, authorized by the Central Bank of Brazil or by the Securities and Exchange Commission (Comissão de Valores Mobiliários), the positions assumed in financial derivative instruments contracted abroad, directly or through branches or companies that are part of the financial conglomerate.

§ 1 The registration referred to in the caput must:

I - cover the underlying assets, the values and currencies involved, the terms, counterparties, settlement method, and parameters used, such as limits, multipliers, and accelerators; and

II - be carried out within two business days after the contracting of the financial derivative instrument.

§ 2 The proof of registration and the documentation related to operations with financial derivative instruments contracted abroad must be kept available to the Central Bank of Brazil for a period of five years.

Art. 2 This resolution enters into force on the date of its publication, producing effects from February 1, 2010.

Brasília, December 16, 2009.

Henrique de Campos Meirelles
President