Brazil: BM&FBovespa introduces penalty fees on late cash payments




BM&FBovespa has introduced penalty fees for late cash payments in Brazilian Real (BRL).

Penalties levied are a percentage of the cash amount processed late, that is, after BM&FBovespa’s cash deadline, according to the following table:

Time to regularise
Up to 15 minutesBetween 15 minutes and 3 hoursOver 3 hours
Penalty %0.50%0.75%1.00%
Minimum amountBRL 5,000BRL 7,500BRL 10,000
Maximum amountBRL 50,000BRL 100,500BRL 200,000

Note: Penalties will double on recurrences within a 12-month period.

BM&FBovespa will charge the broker, who will pass the penalty fee on to Clearstream Banking1 customers through its appointed subcustodian in Brazil, Itaù Unibanco SA. Local parties are still reviewing the process of how these penalty fees are to be charged and we will provide further details once clarified.

Customers are reminded that cash accounts are exclusively used to facilitate the settlement of securities transactions and, consequently, clean payments are not allowed. To comply with Brazilian regulations, customers must convert USD into BRL to settle securities transactions. Conversion from BRL to USD is automatic for BRL purchase proceeds and upon request for BRL sales proceeds.

Further information

Further details of the foreign exchange procedures and the settlement process are provided within the Creation Link Guide - Brazil. For additional details about the penalty fees, customers are invited to review circular letters issued by BM&FBovespa on their website, as follows:

  • 044/2013-DP Oficio Circular – dated 8 July 2013 (Securities delivery failures and late payment to Clearinghouses fines);
  • 012/2013-DO Oficio Circular – dated 2 August 2013 (Securities delivery failures and late payment to Clearinghouses fines);
  • 056/2013-DP – dated 16 August 2013 (Fines for securities delivery failure and for late payment to the Clearinghouses – effective date delayed).

For further information, customers may contact Clearstream Banking Customer Service or their Relationship Officer.

1. Clearstream Banking refers collectively to Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500 (CBF) and Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Register of Commerce and Companies under number B-9248 (CBL).

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