COE Cash Flow Change via System

Optional

In the second phase of the COE improvement project, banks will be able to change the COE cash flow information directly through the system.

We have reached the second phase of the COE (Structured Transaction Certificate) improvement project. The first delivery in September 2021 enabled banks and brokerage houses to electronically change the fixed income and equities fields on the COE when it is contracted by their clients.

Now, the cash flow of investments carried out on the day after the registration date can also be changed electronically to T-4 of maturity. As the project progresses, other flexibilities will be implemented, such as changes involving market contracts.

Project Tags:

OTC

Completed

Derivatives

Product benefits

Greater ease

All changes to the COE cash flow will be done electronically without the need to send physical letters.

Greater safety

Operational errors will be minimized as it will no longer be necessary to make adjustments based on an order sent by the institution.

Operational efficiency

Reduction of operational work eliminates physical processes of sending letters and signatures.

Greater Ease to Change the COE Cash Flow

B3 has eliminated the need to submit paper orders for COE changes.

Clients must inform the reason for the COE cash flow change entered into the system and then B3 will verify compliance with the new parameters. While the analysis is being carried out, the contract is pending approval by B3 so the change will not yet be reflected in the contract.

Until now, changes to the COE were only done when the client sent a letter signed by a person authorized to order those changes and B3 was responsible for checking the information and making the changes.

With the implementation of the project, B3 has automated the entire process for COEs issued on behalf of clients from banking institutions. In Phase 1 the project prioritized data with the greatest recurrence of information requests and, now in its second phase, the project implementation continues with the possibility of clients changing the cash flow directly in the system.

The Structured Transaction Certificate (COE) is an investment product issued by banks merging Fixed Income and Equities elements. One of its key features is that it is structured on gain and loss scenarios selected according to each investor’s profile.