Timetable for New Product Launch: Brazilian Federal Government Bond Lending and Repos with Central Counterparty

  • Jun 28, 2022

Timetable for New Product Launch: Brazilian Federal Government Bond Lending and Repos with Central Counterparty

In alignment with market participants, B3 hereby informs you of that the timetable has been changed for the launch of Brazilian Federal Government Bond Lending and Repo with Central Counterparty (CCP).

Timetable

The product launch has been changed to September 2022. The exact date that the service goes into production will be announced in due course via Circular Letter. B3 also inform that the product launch is conditional upon approval by the responsible regulatory authorities.

Certification

Certification of the product is mandatory and has been available to the market since April 19, 2022. Guidance on the certification script and on enabling test

environments are available on the project’s webpage:

https://clientes.b3.com.br/en_us/roadmap/.

About the project

In response to market demand, B3 is launching Brazilian Federal Government Bond Lending and Repos with CCP, enabling these securities to be transferred to a counterparty and to remain available for free movement provided the collateral required for each transaction is posted.

The new products will facilitate the entry of new investors into this market, the execution of new trading strategies and the use of new risk management models thanks to the CCP service offered by B3.

Use of the CCP assures settlement of the repos, optimizes capital allocation and allows counterparty credit risk equalization, as all of the parties involved come to operate via the B3 Clearinghouse, which has the Close-Out Risk Evaluation (CORE) risk calculation methodology - one of the most up-to-date and secure systems in the world.

The new products will be available in the B3 environment. Custody of federal government bonds remains with Selic.

Please note that the launch of this product will not have an impact on operating processes already established between B3’s participants.

Details of the project are available at: https://clientes.b3.com.br/en_us/roadmap/.

Further information can be obtained by telephone on +55 11 2565-5710 or by email at: transicaoexterna@b3.com.br.