Resolution CMN No. 4040 — Amends Resolution No. 3,339 of January 26, 2006, which regulates the conduct of repo operations involving fixed-income securities

RESOLUTION NO. 004040

Amends Resolution No. 3,339, of January 26, 2006, which regulates the conduct of repo operations involving fixed-income securities.

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 15, 2011, based on Articles 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, and considering the provisions of Articles 16, item IV, and 24 of Law No. 6,385, of December 7, 1976,

RESOLVES:

Art. 1. Article 4 of the Regulation annexed to Resolution No. 3,339, of January 26, 2006, shall be effective with the following wording:

"Art. 4. The free movement of securities subject to resale agreements is permitted, provided that the following conditions are met:

I - the parties enter into a free movement agreement; and

II - the agreements are settled in a registration and financial asset settlement system authorized by the Central Bank of Brazil or by the Securities and Exchange Commission and administered by a clearinghouse or service provider that assumes the position of contracting party for the purpose of settling the transactions carried out through its intermediation.

Sole Paragraph. The condition set forth in item II of the main text shall not be required for repo operations contracted between financial institutions and for those that have as their object securities issued by the National Treasury or by the Central Bank of Brazil, regardless of the parties involved." (NR)

Art. 2. This Resolution enters into force on the date of its publication.

Brasília, December 15, 2011.

Alexandre Antonio Tombini
President of the Central Bank of Brazil