Non-resident investor

Posting Collateral Abroad to 2687 Nonresident Investors

The CMN Resolution #2687 authorizes nonresident investors that only trade agricultural commodities to have some conveniences in terms of settling their transactions and posting collateral abroad.

Customers who are nonresident investors, pursuant to CMN Resolution #2687, settle in U.S. Dollars their transactions carried out in B3 agricultural markets and post U.S. Treasuries and U.S. Dollars as collateral of their transactions. which represent the only assets acceptable to constitute collateral by said investors.

In BCB Resolution #304/2023, BCB established that clearinghouses and clearing and settlement service providers may accept the posting of collateral abroad from non-resident investors, provided that their total amount, including the haircuts, does not exceed 8% (eight percent) of the total collateral required by the settlement system.

• Eligible assets accepted as collateral
  • U.S. dollars
  • U.S Treasury bills, bonds or notes
• Detailed information about B3 ‘s account for posting collateral

  B3’s cash account in Citibank = 40804863
  B3’s securities account in Citibank = 093380

  Chips =	0008
  ABA =	021000089
  Swift =	CITIUS33

• Detailed information about B3‘s account for settlement

  B3’s account in Citibank = 40804898

• Procedure to post U.S. Dollars as collateral or to settle in U.S. Dollars
  • The investor requests to its Brazilian broker the post of dollars as collateral;
  • The broker requests to B3 the post of dollars as collateral (request the pledge at collateral management system - NGA);
  • B3 authorizes collateral to be posted abroad by the relevant nonresident investor upon verification of the limit availability;
  • The investor transfers the dollars to B3’s cash account with Citibank;
  • As soon as Citibank confirms the post, B3 considers it as collateral; and
  • The broker is notified by the collateral management system.
• Procedure to post U.S. Treasuries as collateral
  • The investor requests to its Brazilian broker to apply to B3 for the investor to be allowed to post collateral abroad;
  • B3 authorizes collateral to be posted abroad by the relevant nonresident investor upon verification of the limit availability;
  • The investor specifies the intended collateral to his broker, submitting details including, ISIN or CUSIP securities ID, amount, maturity, trade date, settlement date and the counterparty account number;
  • In turn, the Broker requests the post of collateral by sending instructions to B3 (request the pledge at collateral management system - NGA);
  • The investor instructs its custodian bank to deliver the securities to B3’s account;
  • B3 instructs Citibank to receive (free of payment) the securities; and  
  • When the transfer is settled, B3 collateral management system considers the securities as collateral.