CBLC and DTCC Sign Memorandum of Understanding
Gilberto Mifano, Brazilian Clearing and Depository Corporation CEO
The Brazilian Clearing and Depository Corporation (CBLC) in São Paulo and DTCC have signed a Memorandum of Understanding (MOU) designed to forge closer ties between the two organizations.
Under the terms of the MOU, DTCC and CBLC agree that their respective senior management and staff will meet on a regular basis to increase mutual understanding and exchange market updates, to collaborate on opportunities for improving their working relationship and to share information on business operating models. “CBLC is a critical market infrastructure in the Brazilian capital market, which has experienced such impressive growth in recent years,” said Donald F. Donahue, DTCC chairman and CEO. “As the evolution of the global markets accelerates, we are pleased to work more closely with CBLC through this new agreement.”
Longstanding ties
The business relationship between CBLC and DTCC started long ago, and includes CBLC’s pledging location at DTCC’s depository, where CBLC has efficiently accepted U.S. securities collateral from international customers for almost 10 years.
“DTCC is a leading institution in the global financial community, and we believe that this closer collaboration will help us better address market opportunities and challenges in the Americas and globally,” said Gilberto Mifano, CBLC CEO. “We are delighted to strengthen ties with DTCC.”
The MOU complements the two organizations’ strong relationship as active members of the Americas’ Central Securities Depositories Association, which comprises 25 market infrastructures in the region, and of CCP12, a central counterparty clearing group consisting of 23 major clearing organizations worldwide.
About CBLC
CBLC is a subsidiary of the Bovespa Holding Group. It is the central securities depository for equities, corporate bonds and mortgage-backed securities with responsibility for the safekeeping of over 2.1 trillion securities with a total value of approximately US$634.6 billion.
CBLC also provides securities settlement services and central counterparty services for equities (cash and derivatives), corporate debt instruments as well as the securities lending service, clearing and settling an average daily volume of US$2.9 billion relating to more than 153,400 trades, and with a peak volume of US$10.4 billion and more than 288,400 trades reached in August 2007.
For more information on CBLC, visit www.cblc.com.br. @