CCP consolidation successfully implemented at ABN AMRO Clearing Brazil

News item -

Since the beginning of September, the Brazil derivatives and equities CCPs are fully integrated. Our Brazil Clearing Team successfully completed the post-trade implementation process.

The Post-Trade Integration Project  IPNv2 aimed for the integration of post-trading activities, including the merger of two CCPs  (derivatives and equities). It means a major leap forward in terms of technology and efficiency.  It provides an answer to the fragmentation of post-trade services across the different clearinghouses.  This was one of the main reason behind the inefficient and overly complex cross-border settlements of trades.

IPNv2 is a great milestone and it will have a positive effect on the functioning of the Brazil market:

• estimated effect from IPNv2 launch is BRL 21 billion of collateral that was returned to the market with complete preservation of the CCP´s safety system.

• greater efficiency in the allocation of capital by the participants due to the integration of the models, processes, regulations and systems of the CCPs.

• Clearing Brazil acts as carrying broker, responsible for futures, stock options and SBL and all financial settlement and reports to clients

• single risk management to all markets, which allows:

- unified view of portfolio risks

- definition of a single model for calculating margins

- improvement of safeguard structures

- integration of different financial instruments between CCPs

We feel confident that the completion of the IPNv2 project will attract new clients to our clearing offering in Brazil, providing them with better and more cost efficient services.