Monday September 18 2023

News Source: Global Exchanges

Focus: Clearing & Settlement

Type: General

Country: Brazil

Link: https://tinyurl.com/yeys9sj4




Brasil Bolsa Balcao S.A. (B3) issued circular that it will implement the extended asset settlement window for the equities market on September 25th, 2023. 

In the new process, the B3 Clearinghouse will have a daily asset delivery cycle at 8:30 a.m. of T+2, so that the debit settlement instructions for assets in balance in the B3 Central Depository for Equities can be early settled. Instructions with no corresponding amount in balance will await processing in the official asset delivery window (11:00 a.m.), which B3 will maintain for final settlement attempts and for determining delivery failure. 

This initiative will enable early settlement of more than 80% of debit settlement instructions, which will have the positive impact of bringing forward participants’ processes and of reducing processing time in the 11:00 a.m. asset delivery window. 

The cyclical window will only consider instructions to debit assets when custody transfer authorization has already been granted. 

Settlement instructions originating from electronic securities lending with T+0 settlement, still in the allocation period, will not be part of the cyclical processing. 

The processing of requests on T+2 to change accounts in settlement instructions will be suspended during the cyclical window, as will custody authorization and processes that involve transfer of custody in the B3 Central Depository.  

Implementation of the extended delivery window will occur in stages, as described below. 

  • September 25th, 2023 – cyclical window containing the instructions to deliver assets in coverage subaccounts (2201-2, 2701-4, 2601-8, 2801-0, 2409-0).  
  • November 7th, 2023 – instructions added to the window to deliver in the other enabled accounts (2101-6, 2105-9, 2194-6, 2906-8). 

The accounts used for depositing collateral (2390-6) and for buy-in cancellation (2502-0) will be processed only during the official asset delivery window. 

Click on the above link for further informationÂ