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CBLC and DTCC Sign Information Sharing and Collaboration Pact
São Paulo and New York, May 13, 2008 - The Brazilian Clearing and Depository Corporation (CBLC) in São Paulo and The Depository Trust & Clearing Corporation (DTCC) in New York 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 Chief Executive Officer. “As the evolution of the global markets accelerates, we are pleased to work more closely with CBLC through this new agreement.”
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 Chief Executive Officer. “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 (ACSDA), which comprise 25 market infrastructures in the region, and of CCP12, a central counterparty clearing group consisting of 23 major clearing organizations worldwide.
About CBLC
The Brazilian Clearing and Depository Corporation (CBLC) is a subsidiary of the Bovespa Holding Group. CBLC is the Central Securities Depository (CSD) 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 USD 634.6 billion. CBLC also provides Securities Settlement Services (SSS) and Central Counterparty Services (CCP) for equities (cash and derivatives), corporate debt instruments as well as the securities lending service, clearing and settling an average daily volume of USD 2.9 billion relating to more than 153,400 trades, and with a peak volume of USD 10.4 billion and more than 288,400 trades reached in August, 2007. CBLC is a self-regulatory organization with USD 250.8 million in net capital and a company, very much aligned with international standards and trends, working continuously with the market participants and the Brazilian authorities in order to provide domestic and international investors with a state-of-the-art infrastructure. For more information on CBLC, visit www.cblc.com.br.
About DTCC
The Depository Trust & Clearing Corporation (DTCC), through its subsidiaries, provides clearance, settlement and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, money market instruments and over-the-counter derivatives. In addition, DTCC is a leading processor of mutual funds and insurance transactions, linking funds and carriers with financial firms and third parties who market these products. DTCC’s depository provides custody and asset servicing for 3.5 million securities issues from the United States and 110 other countries and territories, valued at $39 trillion. Last year, DTCC settled more than $1.8 quadrillion in securities transactions. DTCC has operating facilities in multiple locations in the United States and overseas. For more information on DTCC, visit www.dtcc.com.