Euroclear SA/NV and Companhia Brasileira de Liquidação e Custódia (CBLC), the Brazilian Clearing and Depository Corporation, have signed a Memorandum of Understanding (MoU) to build and develop a co-operative relationship in securities clearing and settlement matters.
The purpose of the agreement is to foster prosperity in Brazil’s financial markets as well as those markets covered by the Euroclear group (Belgium, France, Ireland, The Netherlands, the United Kingdom and the international markets served by Euroclear Bank). Euroclear and CBLC aim to ease crossborder investment as well as explore opportunities for co-operation in clearing and settlement operations.
The MoU encompasses the following initiatives:
• cross-entity training programmes;
• data exchange for the improvement of clearing and settlement systems, such as statistics, market updates and business operating models;
• regular meetings between senior management to increase mutual understanding of business developments; and
• joint studies on topics related to securities clearing and settlement operations.
The business relationship between CBLC and Euroclear started long ago, and includes CBLC’s account at Euroclear Bank, the international securities depository. As a result, CBLC has efficiently accepted securities as collateral from international customers for almost ten years.
Gilberto Mifano, Chief Executive Officer of CBLC, commented: “We are pleased to have signed this MoU with Euroclear. We trust this agreement will play an important role in further developing operational efficiency in Brazil, particularly in view of the pending merger of Brazil’s BM&F SA, the local commodities and futures exchange, and Bovespa Holding SA, the publicly traded company that owns and manages the Brazilian Stock Exchange. It also responds to the growing appeal of Brazilian securities to foreign investors.”