The Clearinghouse has mechanisms to ensure the settlement of its obligations to its non-defaulting participants, even if one or more debtors fail. These mechanisms are called Safeguard Structure and they are derived from Participants’ Structure.

Safeguard structure components

a) Collaterals deposited for the purpose of containing market risk

Componentss Contributors Value Definition Can be used for treating default of third parties?
Layer 1 Investors Risk No
Operating Balance Adjustment Full trading participants/ settlement participants and/or clearing members Risk No
Minimum Nonoperating Collateral Full trading participants/ settlement participants Fixed No
Layer 2: Settlement Fund Clearing members and B3&FBOVESPA Fixed Yes

b) Collateral deposited for the purpose of containing liquidity risk:

  • Collateralized and uncollateralized liquidity assistance facilities;
  • A portion of the B3&FBOVESPA capital.

Defaul waterfall

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1 - Defaulting customer’s collateral under defaulting broker and CMs
2 - Defaulting customer’s excess collateral under other brokers and CMs
3 - Defaulting broker’s collateral
4 - Defaulting CM’s collateral
5 - Defaulting CM’s contribution to default fund
6 - BVMF’s contribution to default fund
7- Non-defaulting CMs’ contributions to default fund
8 - BVMF dedicated cash position to the CCP
9 - BVMF other assets