Resolution No. 4,191

The Central Bank of Brazil, in the form of art. 9 of Law No. 4,595, of December 31, 1964, makes public that the National Monetary Council, in a session held on February 28, 2013, based on arts. 3, item V, 4, item XVII, and 12 of Law No. 4,595, of 1964, in art. 28, § 2, of Complementary Law No. 101, of May 4, 2000, and in Law No. 10,214, of March 27, 2001,

H A S 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 modality of purchase with repurchase commitment, of one business day, 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 the provisions of this Resolution, purchase with repurchase commitment means the purchase of a security by the Central Bank of Brazil, with a repurchase commitment, together with the sale of a security by the financial institution, with a repurchase commitment.

§ 2 The liquidity mechanism referred to in the caput aims to meet liquidity needs arising from very short-term mismatches in the institution's cash flow.

§ 3 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, except for the automatic granting associated with the settlement of an intraday rediscount operation not settled at the end of the operating hours of the Reserve Transfer System (STR).

Art. 2 The federal public securities registered in the Special System for Settlement and Custody (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 repurchase 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 the Central Bank Rediscount operations.

Art. 3 In the purchase with repurchase 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 - repurchase price: purchase price plus an amount corresponding to the application, on the purchase price, of the rate obtained by the composition of the Selic Rate, defined in accordance with the regulations in force, determined for the business day of the operation, with a rate set by the Collegiate Board of the Central Bank of Brazil and valid on the date of the operation.

Art. 4 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 provided for in the regulations of the respective settlement systems.

Art. 5 Resolution No. 2,949, of April 4, 2002, shall now include the following article:

"Art. 2-E The Central Bank Rediscount operation whose repurchase commitment is not settled by the financial institution until the end of the operating hours of the STR on the maturity date of the commitment shall be considered defaulted.

§ 1 The assets arising from the 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." (NR)

Art. 6 Art. 6 of Resolution No. 4,002, of August 25, 2011, shall now have the following amendment:

"Art. 6 The operation referred to in art. 1, not settled by the institution at the end of the operating hours of the Reserve Transfer System (STR), shall be settled automatically by the Central Bank of Brazil, on the same day, associated with the simultaneous granting of a new operation of the same nature and with a term of one business day, observing the rules relating to the Settlement Account.

Sole paragraph. In the event of an impediment to the completion of the automatic settlement referred to in the caput, the provisions of art. 2-E of Resolution No. 2,949, of April 4, 2002, shall apply." (NR)

Art. 7 The operations referred to in art. 1 shall be subject to the provisions of arts. 2-D and 2-E of Resolution No. 2,949, of 2002, with the wording given by this Resolution.

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 shall enter into force on the date of its publication.

Art. 10 The sole paragraph of art. 2-D of Resolution No. 2,949, of April 4, 2002, with the wording given by Resolution No. 3,622, of October 9, 2008, and by Resolution No. 4,002, of August 25, 2011, is revoked. Alexandre Antonio Tombini President of the Central Bank of Brazil