Decree establishes Working Group to assess the adoption of an international central depository for domestic public debt securities

The Ministry of Finance, the Central Bank of Brazil - BCB, and the Securities and Exchange Commission of Brazil - CVM signed a joint decree yesterday, the 15th of June 2023, creating a Working Group to evaluate the possibility of adopting an international central depository - DCI for the Domestic Federal Public Debt Securities - DPMFi.

If the trading of domestic debt securities through a DCI proves feasible, such securities will be traded in both the domestic and international markets concurrently, attracting new investors to the DPMFi securities market, broadening the distribution of debt among various groups, which is one of the guidelines for the management of the Federal Public Debt.

The Working Group, whose duration will be of 120 days, extendable for an equal period, will conduct the analysis of the technical feasibility and will potentially propose operational measures and legislative amendments for the adoption of a DCI. The group will be coordinated by National Treasury Secretariat – STN and its composition includes representatives from the Brazilian Federal Revenue - RFB, BCB and CVM.

This initiative is expected to enhance the access of non-resident investors to the DPMFi securities market, generating significant benefits to the national financial market, such as increased liquidity, reduced costs, and greater attractiveness of government securities to investors in general.

The STN, in its capacity as executive secretary, will release a report with the study's conclusions by the end of the Working Group's activities.