New collateral criteria for securities in Brazil
21 June 2010 Sao Paulo
Image: Shutterstock
Reported on RBC Dexia's market updates and effective immediately, the Bolsa de Mercadorias e Futuros(BM&F) and the Bolsa de Valores de Sao Paul(BOVESPA) have announced the new collateral criteria for accepting securities as collateral. The new criteria means that the BM&FBOVESPA Derivatives Clearinghouse and the Central Depository for Equities (CBLC) will now accept the following securities as collateral which belong to the:
Ibovespa (BOVESPA's Index)
Brazil Index (IBrX)
Novo Mercado segment
Corporate Governance Level 2 listing segment
The CBLC will not allow investors to pledge securities as collateral in the BOVESPA segment, and the Derivatives Clearinghouse will not allow investors to pledge securities as collateral in the BM&F segment which:
Exceed 3.5% of the total amount of shares issued by the company; or
Exceed 7.5% of the total amount of outstanding shares.
The Derivatives Clearinghouse have also applied the following limits:
BRL 15 million maximum value per investor for each security not belonging to the Ibovespa or IBrX
BRL 75 million maximum value for the group of securities not belonging to the Ibovespa or IBrX
BRL 150 million maximum value per group of investors belonging to the same economic group for the securities not belonging to the Ibovespa or IBrX.
The BM&FBOVESPA will re-evaluate the above limits periodically to reflect the market conditions.
Impact
Effective immediately, the BM&FBOVESPA will accept securities as collateral which belong to the Ibovespa, IBrX, Novo Mercado and Corporate Governance Level 2 listing segment.
If you require further information please contact your RBC Dexia Investor Services representative.
RBC Dexia Investor Services Limited is a holding company that provides strategic direction and management oversight to its affiliates, including RBC Dexia Investor Services Trust, which operates in the UK through a branch authorised and regulated by the Financial Services Authority. All are licensed users of the RBC trademark (a registered trademark of Royal Bank of Canada) and Dexia trademark and conduct their global custody and investment administration business under the RBC Dexia Investor Services brand name.
The content of these materials does not constitute any advice or commitment on behalf of RBC Dexia Investor Services and is not a substitute for consultation with legal, financial or other professional advisers. This information is provided for general information purposes. RBC Dexia Investor Services accepts no responsibility or liability of any kind for the accuracy, reliability or completeness of the information, or for any action taken, or results obtained, from the use of the information.
Ibovespa (BOVESPA's Index)
Brazil Index (IBrX)
Novo Mercado segment
Corporate Governance Level 2 listing segment
The CBLC will not allow investors to pledge securities as collateral in the BOVESPA segment, and the Derivatives Clearinghouse will not allow investors to pledge securities as collateral in the BM&F segment which:
Exceed 3.5% of the total amount of shares issued by the company; or
Exceed 7.5% of the total amount of outstanding shares.
The Derivatives Clearinghouse have also applied the following limits:
BRL 15 million maximum value per investor for each security not belonging to the Ibovespa or IBrX
BRL 75 million maximum value for the group of securities not belonging to the Ibovespa or IBrX
BRL 150 million maximum value per group of investors belonging to the same economic group for the securities not belonging to the Ibovespa or IBrX.
The BM&FBOVESPA will re-evaluate the above limits periodically to reflect the market conditions.
Impact
Effective immediately, the BM&FBOVESPA will accept securities as collateral which belong to the Ibovespa, IBrX, Novo Mercado and Corporate Governance Level 2 listing segment.
If you require further information please contact your RBC Dexia Investor Services representative.
RBC Dexia Investor Services Limited is a holding company that provides strategic direction and management oversight to its affiliates, including RBC Dexia Investor Services Trust, which operates in the UK through a branch authorised and regulated by the Financial Services Authority. All are licensed users of the RBC trademark (a registered trademark of Royal Bank of Canada) and Dexia trademark and conduct their global custody and investment administration business under the RBC Dexia Investor Services brand name.
The content of these materials does not constitute any advice or commitment on behalf of RBC Dexia Investor Services and is not a substitute for consultation with legal, financial or other professional advisers. This information is provided for general information purposes. RBC Dexia Investor Services accepts no responsibility or liability of any kind for the accuracy, reliability or completeness of the information, or for any action taken, or results obtained, from the use of the information.
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