Deferred Settlement System for Interbank Credit Orders (Sistema de Liquidação Diferida das Transferências Interbancárias de Ordens de Crédito) - Siloc
SILOC settles interbank obligations related to Document of Credit (DOC), Special Credit Transfer (TEC) and “bloqueto de cobrança” presenting value lower than R$ 5 thousand. Multilateral net positions are settled in reserves accounts held by participants in the Banco Central do Brasil, through STR, usually in the same day, in case of TEC, and T+1 in case of both DOC and “bloqueto de cobrança”. The system, which is operated by CIP, went on live on February 18, 2004, and comprises 116 sight deposit taking financial institutions (December, 2008).
On each business day, two settlement sessions are carried out. Net positions are informed to the participants, through electronic files, up to 5:10am in case of the morning session, and up to 3:05pm in case of the afternoon session. In each session, just one nationwide net position is calculated. In the first session, which ends at 8:20am, interbank obligations related to documents addressed the day before in the banking network are settled. In the second session, which ends 4:10pm, mainly returned items are settled, i.e. documents previously settled in the morning session and that, for any reason, are sent back to the sending bank.