B3 has been working together with the market and regulators on the formalization process for collateral contracts provided...

B3 has been working together with the market and regulators on the formalization process for collateral contracts provided for in Law 12,810 dated May 15, 2013. As a final part of the regulatory adaptation, which already covers securities and derivatives, on September 23 we formalized the registration of financial assets pledged as collateral. Until then, this option was only available for centralized deposit assets.  

The new solution, known as lien, addresses both the legal aspect of the formalization of the collateral and its operational block. It prevents the asset from being traded and is reserved to settle the transaction in the event of default. Furthermore, the amendment, transfer and execution of collateral are carried out in an integrated manner and in the same environment in which the assets are registered and deposited, namely, the NoMe platform.

We have also improved the consultation and issuance system of certificates that prove the existence of liens and encumbrances on certain collateral. This activity has been integrated into the OTC and listed asset platforms and is now quickly and easily performed on UP2DATA ON DEMAND.  As of November 2019, certificates may also be requested directly from the NoMe platform.

The process is fully electronic and reduces operational transfers and costs that presented an obstacle to the complete adoption of this implementation.

Accepted assets

More than 50 instruments registered and deposited at B3 are now accepted, such as CDB (Bank Certificate of Deposit), LCI (Real Estate Credit Bill), LCA (Agribusiness Credit Bill), LF (Financial Bill), DI (Interbank Deposit) and COE (Brazilian Structured Notes). More than BRL32 billion worth of collateral have been formalized in B3’s environment.

How it works

1. B3’s participating institution accesses the NoMe platform, fills in the contract’s details, uploads it in PDF format and identifies the assets to be traded.

2. These assets are transferred by the system to a specific account (Lien Account - 68) and are blocked until the lien has been extinguished or executed. This is legally formalized in the account, bringing greater security to the process and collateral effectiveness.

3. Dissemination to third parties is ensured by providing a certificate proving the existence of the lien. The certificate may be issued at any time by anyone on UP2DATA ON DEMAND.

Further information

CSD & OTC Department

Tel: + 55 11 2565-5041

[email protected]