Febraban, the Brazilian banking federation, has launched a voluntary registration system for companies to report their outstanding derivatives positions, with the information made available to the country’s banks.
Central de Exposição de Derivativos was unveiled at a ceremony on November 17. Although it became operative today, the system is not expected to be in use before December. Febraban launched the initiative in partnership with BM&F Bovespa, Latin America’s largest securities exchange, and central securities depository Cetip. It will be chaired by Banco Itaú's Marcello Maziero.
The idea behind the initiative is to improve the transparency of corporate derivatives reporting, making it easier for banks to see how clients are leveraged. Though CED is a private initiative, it is endorsed by the regulator, Comissão de Valores Mobiliários.
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