Collateral Integration with Selic Lien

Optional

Collateral Integration with Selic Lien

Federal securities are now part of the portfolio of assets eligible for collateral management at B3.

Collateral integration – Collateral Management module in bilateral relationships – into the lien area of the Special System for Settlement and Custody (Selic) has expanded the range of assets eligible for B3 collateral management service.

With this integration, users will be able to swap collateral for public securities and the transfer of securities eligible for collateral, including allocation, release and execution of assets, when instructed, will be carried out by B3. In other words, for those who acquire Collateral, B3 will act as intervening party in the new lien accounts automatically generated by the Selic platform.

A plataforma atende diferentes mercados e te ajudará cumprir os requisitos para prevenção à lavagem de dinheiro, financiamento do terrorismo, processos de KYC e prevenção à fraudes.

Project Tags:

OTC

Completed

Derivatives

Product benefits

Redução de risco

A integração mitiga o risco de crédito ao definir o que pode ser parametrizável em cada relacionamento bilateral.

Agilidade

Possibilidade de acesso em tempo real a todas as informações relacionadas às garantias (alocação, liberação, substituição e valoração.

Segurança

Operação com o conceito de portfólio, sem vincular a exposição às garantias oferecidas.

Otimização

Redução de custos e riscos operacionais com processos automatizados e bem definidos.

Integration of Collateral Management Services Expands Business Opportunities

Expanding the possibilities of using Collateral linked to the collateral provision process in the Brazilian financial system.

B3’s Collateral service is a Collateral Management module in Bilateral Relationships developed with the purpose of promoting credit risk mitigation between the parties involved in trades.

The Collateral service integration into the Selic platform's lien system is now underway and is scheduled to be completed in 2021. It represents a considerable expansion of business opportunities for B3's clients. There will be no changes to the current modus operandi and to product flexibilities.

With the integration, federal securities will become part of a portfolio eligible for Collateral Management in similar manner to DI, CDB, financial bills, debentures and cash.

This movement enhances B3’s bilateral management value chains and provides an attractive operational option for banks, investment funds and other financial institutions.

Selic is a system managed by the Central Bank of Brazil and intended for the custody, registration and settlement of trades with securities issued by the National Treasury. Since the beginning of 2021, public securities trades have been carried out automatically and free of charge on a proprietary platform. See the Central Bank of Brazil documentation about this topic.