Thursday September 14 2017

News Source: Global Exchanges

Focus: Other

Type: General




The Central Bank of Brazil has published a Circular which outlines the rules that apply to non-residents who wish to deposit collateral on the Brazilian Markets through Clearing Houses.

The main ruling within the Circular states that the total amount of assets which can be held cannot exceed eight percent (8%) of the aggregate margin value required by the relevant clearing and settlement system.

The Circular states that such rules will apply to those who meet the definition of Non-Residents as laid down in Section 6.1, Chapter 6 of the Clearinghouse Risk Management Manual.

Furthermore, the Circular states that for Non-Residents wishing to deposit Collateral abroad they must adequately file supplementary registration of this Collateral in accordance with the procedures laid down in Annex 1 of the Circular.

The Circular is particularly useful to investors as it also provides a formula explaining who Non -Residents can calculate the amount of collateral they can transfer abroad.

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