Friday August 9 2013

News Source: Global Exchanges

Focus: Stock Exchange Regulation

Type: General

Country: Brazil

Link:




It has been reported that the Brazilian Securities, Commodities and Futures Exchange (BM&FBOVESPA) has issued a new penalty structure for settlement failures and securities delivery failures. Originally due to come into force on 5th August, this has now been extended to 19th August. See the fee structure below.

 

Fail date

Fail type

As of trade date August 19, 2013

As of trade date October 1, 2013

As of trade date December 2, 2013

T+3/T+4

Fails motivated by previous failures committed by third parties

Not applicable

Not applicable

Not applicable

T+3

All other fails

0.5%

1%

1%

T+4

All other fails

1%

5%

10%

No penalty fee will be applied for situations where previous failures are committed by third parties.

In addition to the above penalties will also apply for T+3 fails that settle T+4 when the following occurs:

  • securities for T+3 purchases have been received on T+4 outside the T+3 clearing house settlement window
  • securities are delivered on T+4 as a result of coverage of the failed transactions through a compulsory loan via a securities lending programme (BTC)
  • at the discretion of BM&FBOVESPA

Additional penalty fees will apply to failures not delivered on T+3 and covered on T+4:

Fail date

Fail type

As of trade date August 19, 2013

As of trade date October 1, 2013

As of trade date December 2, 2013

T+3

T+3 fail on T+4

1%

5%

10%

 

This information will be updated as soon as further details become available.