Securities, derivatives and foreign exchange settlement systems

In Brazil, nearly 100% of all securities are dematerialized. Trading, clearing and settlement systems are highly automated, straight-through processing (STP) is broadly used, and DVP is observed in all securities settlement systems. In case of interbank foreign exchange transactions, PVP is observed as well if settlement is carried out through BM&FBOVESPA Foreign Exchange Clearinghouse.

Regarding securities settlement systems, the Brazilian payment system presents certain segmentation. SELIC, operated by the BCB, settles federal government securities¹. BM&FBOVESPA Securities Clearinghouse also settles these securities using a different settlement model. CBLC settles mainly transactions with stocks carried out through BM&FBOVESPA and SOMA, while corporate bonds are mainly settled through CETIP.

 

Apart from CBLC, FX Clearinghouse and Securities Clearinghouse, BM&FBOVESPA also operates a derivatives settlement system. The following figure shows an overview of the Brazilian financial system, regarding trading, clearing and settlement of securities, derivatives and FX transactions:

¹ Settlement of financial and security legs takes place simultaneously throughout the day, transaction-by-transaction