Companies headquartered in Brazil can contract exchange-traded or OTC derivatives in both the domestic and foreign markets. Whenever these transactions are contracted abroad they must registered, as specified in the pertinent Central Bank of Brazil resolutions and circulars. B3 provides this registration service in a specific module to meet the requirements of this market, in the two modalities highlighted below.

Derivatives Contracted Abroad (DCE)

Resolution 3824, of 2009, determines the registration of derivatives contracted in the foreign market by a financial or other institution authorized by the Central Bank of Brazil, including dependent companies or members of the same financial conglomerate. The registration deadline is two business days after contracting.

Resolution 3.312, of 2005, governs mandatory registration of derivatives to be used as hedges for commercial and financial rights and obligations, if contracted abroad and executed among foreign financial institutions or exchanges and financial institutions and others authorized by the Central Bank of Brazil.

Derivatives related to loans (DVE)

According to Circular 3.474, of 2009, there must be registration in the case of derivative financial instruments that are related to the cost of debt originally contracted in loans between parties resident or domiciled in Brazilian and parties overseas, including individuals and nonfinancial companies, as set forth in Resolution 3.844, of 2010.

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