Brazil: Institutional Features

Article Index

The Clearing and Settlement System

It is a legal requirement that the clearing and custody of securities on the Brazilian capital markets must be conducted by companies set up exclusively for this purpose. The custody of securities negotiated on the São Paulo stock exchange is the responsibility of the exchange itself and the financial settling of the operations falls to CALISPA - Liquidation Cashiers for São Paulo S.A., while at the stock exchange at Rio de Janeiro and in the SENN the custody of bonds and settling of operations is entrusted to CLC S.A. - the Liquidation and Custody Chamber S.A. Both offer a system for custody which is fully automated and allows securities to be delivered within three working days. Services such as appropriation of benefits, on-line queries and the issue of summaries of securities trading are also commonly performed by these two companies. Furthermore, both maintain an interface between their custody systems to facilitate the arbitrage between transactions at BVRJ / SENN and BOVESPA.

The system for clearing and settlement at BOVESPA is operated by CALISPA S.A., while BVRJ / SENN is operated by CLC S.A. The clearing of the cash market transactions takes place on the first working day after performance. Financial clearing takes place on the third working day.