Resolution No. 4.002

RESOLUTION No. 004002 ------------------- Authorizes the Central Bank of Brazil to carry out a Central Bank Rediscount operation, in the form of an intraday purchase with a resale commitment, with financial institutions holding a Settlement Account, and provides other measures. The Central Bank of Brazil, pursuant to art. 9 of Law No. 4.595 of December 31, 1964, makes public that the National Monetary Council, in a session held on August 25, 2011, based on arts. 3, item V, 4, item XVII, and 12 of Law No. 4.595 of 1964, on art. 28, § 2, of Complementary Law No. 101 of May 4, 2000, and on Law No. 10.214 of March 27, 2001, R E S O L V E D: Art. 1 The Central Bank of Brazil is authorized to carry out a Central Bank Rediscount operation, in the form of an intraday purchase with a resale commitment, of federal public securities registered in the Special System for Settlement and Custody (Selic), with financial institutions holding a Settlement Account at the Central Bank of Brazil, under the terms and conditions set forth in this Resolution. § 1 For the purposes of this Resolution, purchase with a resale commitment means the purchase of a security by the Central Bank of Brazil, with a resale commitment, together with the sale of a security by the financial institution, with a repurchase commitment. § 2 For the purposes of this Resolution, intraday operation means a purchase with a resale commitment in which the purchase and the corresponding resale occur on the same day. § 3 The liquidity mechanism referred to in the caput aims to meet the liquidity needs of a financial institution throughout the day. § 4 The operations referred to in the caput are granted, at the sole discretion of the Central Bank of Brazil, upon request by the interested financial institution. Art. 2 The federal public securities registered in Selic that are part of the financial institution's own custody position and that are not subject to trading restrictions may be the object of the purchase with a resale commitment operation provided for in this Resolution. Sole paragraph. The Central Bank of Brazil shall disclose the federal public securities that will be accepted in Central Bank Rediscount operations. Art. 3 In the purchase with a resale commitment operations referred to in this Resolution, the following trading parameters shall be observed: I - purchase price: disclosed daily by the Central Bank of Brazil; and II - resale price: equal to the respective purchase price. Art. 4 The provisions of art. 2-D of Resolution No. 2.949 of April 4, 2002, as amended by this Resolution, apply to the operations referred to in art. 1. Art. 5 The financial settlement and the movement in custody accounts of the assets subject to the operations referred to in this Resolution are subject to the rules and operational procedures set forth in the regulations of the respective settlement systems. Art. 6 The operation referred to in art. 1, whose repurchase commitment is not settled by the financial
institution until the end of the operating hours of the Reserve Transfer System (STR), shall be considered defaulted. § 1 The assets arising from defaulted operations, under the terms of this article, shall be incorporated into the Central Bank of Brazil's own portfolio and sold at auction. § 2 Any negative result for the Central Bank of Brazil in the sale of these assets, determined at auction, shall be reimbursed by the counterparty institution of the defaulted operation. Art. 7 Art. 2-D of Resolution No. 2.949 of April 4, 2002, as amended by Resolution No. 3.622 of October 9, 2008, shall take effect with the following amendments: "Art. 2-D ............................................ ........................................................ III - Central Bank Rediscount operation, except intraday, with the payment of a Central Bank Rediscount operation of the same modality, of any term. Sole paragraph. The provisions of item III of this article do not apply to operations contracted by a financial institution holding a Settlement Account." (NR) Art. 8 The Central Bank of Brazil shall issue the rules and adopt the measures necessary for the execution of the provisions of this Resolution. Art. 9 This Resolution enters into force on the date of its publication. Brasília, August 25, 2011. Altamir Lopes President of the Central Bank, substitute