6th ACSDA International Seminar Punta del Este, Uruguay - October 27-28, 2004 CBLC
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Transcript of 6th ACSDA International Seminar Punta del Este, Uruguay - October 27-28, 2004 CBLC
6th ACSDA International Seminar 6th ACSDA International Seminar
Punta del Este, Uruguay - October 27-28, 2004Punta del Este, Uruguay - October 27-28, 2004
CBLCCBLCBrazilian Settlement and Depository Models for Brazilian Settlement and Depository Models for
International InvestmentInternational Investment
Brazil & Mexico - Integration ModelBrazil & Mexico - Integration Model
Agenor Silva JuniorAgenor Silva Junior
October 28, 2005October 28, 2005
General guidelines• Since November 2004, BOVESPA, BMV, CBLC and INDEVAL
have been working together to set a integration model between Brazil and Mexico
• This presentation intends to explain the current model for international investments in Brazil and to explore the new integration model between Brazil and Mexico
Settlement FlowSettlement Flow
International Investors Settlement – Abroad Flow
CBLC/Bovespa
International Broker
Local Broker Local Custodian
Global CustodianAsset /
InternationalInvestor 1. Order
2. Repass Order
Desk
Phone
Bloomberg
4. Reports trade
7. Settlement
Instructions
SWIFT – 54X
Brazilian FlowBrazilian Flow
3. Reports trade
Desk
Phone
Bloomberg
Email3’. Reports trade and
ask for allocation
Back Office
5’. Allocation Process
Back Office
5. (If Asset) Allocation ProcessOMGEO / Phone
6. Settlement Instructions
6’. Settlement Instructions Back Office Email / Fax/File
8. Inform inconsistencies
SWIFT – 54X/
Phone
8’. Inform inconsistencies Email / Fax
8’’. Inform inconsistencies
9. Confirm Settlement Back Office Phone/Email
9’. Confirm Settlement
Back Office
Swift/Email
XML Message provided by CBLC / BOVESPA
International Investors Settlement – FOREX Flow
CBLC
International Broker
Local Broker Local Custodian
Global CustodianAsset /
InternationalInvestor ExchangeExchange
FX Bank FX Bank
Clearing Agent
Exchange Exchange
Exchange
Exchange Exchange
Exchange
Payment Payment
Payment
Depository Flow
IssuerGlobal Custodian
Local Custodian
CBLC / Bovespa
International Investor
6. Instructs voluntary corporate actions
5. Informs corporate actions
3. Notifies corporate actions
2. Informs corporate actions
9. Process and informs corporate actions
10. Process and informs
corporate actions
8. Instructs voluntary corporate actions
7. Instructs voluntary corporate
actions (MT 565 or MT 568)
4. Notifies corporate
actions (MT 564 or MT 566)
International Investor Corporate Actions Information Flow
1. Informs corporate actions
Transfer Agent
8’. Instructs voluntary corporate actions (option)
International Investor Corporate Actions Payment Flow
1. Informs payment values
IV. LDL008R2II. LDL008
III. LDL008R1
VI. LDL009R1
VII. LDL009R2
CBLC
4. Confirms credit of
funds
Local Custodian
STRV. LDL009
I. LDL007
Issuer´s Bank
3. Confirms credit of
funds
(MT 566)
International Investor
Global Custodian Local Custodian´s Bank
2. Confirms credit of funds
Integration Model
Trading, Settlement and Depository Flow
Integration Model• Orders
– Mexican broker pass the order to the correspondent Brazilian broker in Brazil
• Allocation Process– Correspondent Brazilian broker allocates the delivery/receive of shares at the Mexican investor
´s account that is under responsibility of a Local Custodian • According Brazilian rules the Local Custodian could be CBLC or any other Brazilian custodian
• Settlement– Same settlement procedures as usual
– The Mexican Broker give the instruction to the local custodian for settlement (delivery versus payment)
– The foreign exchange procedures is made by the Mexican Broker with the guaranty of the Local Custodian
• Depository– The shares will be register and kept at the Mexican investor´s account under the Local
Custodian responsibility
MEXICO
BRAZIL
Mexican InvestorMexican
Broker
Indeval
Depository
Brazilian
Broker
Local Custodian (CBLC/others)
CBLC Clearing and Depository
1
Order
(*) Infornation about the mexican investor, Mexican na Brazilian Broker
BOVESPA
3Execute
order
Settlement Instructions
6
Match the instructions and autrorizes the
trade
7
8 CBLC process the settlement
2Repass order and inform CBLC´s account number
10
Deliver brazilian shares at the mexican broker´s account
5
Settlement Instructions 9 Inform delivery of brazilian shares for the mexican investor and receive
confirmation ( SWIFT)
9
4c
Allocation Process
4bReports trade
4a
Reports trade
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