Redirecting LF Events

Optional

Greater autonomy when paying Financial Bill {LF) events

Soon, holders of Financial Bills (LF) linked to security interest contracts at B3 OTC will have greater autonomy when defining how financial events - interest rate payments, for example - will be handled.

B3 is creating a new functionality to allow investors to choose, when registering the guarantee contract or transferring the Financial Bill to the contract, whether the financial events will be directed to the guarantor or to the guaranteed party (creditor).

This definition will be made via custodian through the field “Events for the Guaranteed Party? YES/NO”.

Project Tags:

Depository

OTC

In Progress

OTC

Product benefits

Greater control

Flexibility to structure guarantee contracts in line with the investor's strategies.

Autonomia

Events will be automatically redirected according to the choice made upon registration.

Diversification

By expanding the list of guaranteed assets and redirecting financial events.

Convenience

Upon settlement and at the time of registration of the contract, investors may choose whether or not the financial events can reduce the debt value.

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The change will increase control and efficiency in managing collateral at B3 OTC.

When registering the Guarantee Contract or the Asset Transfer Request, the custodian may choose whether Financial Bill events will be paid to the guaranteed party. This will be done through the field “Events for the Guaranteed Party? YES/NO”.

A Financial Bill is a fixed income security issued by financial institutions with the purpose of raising long-term funds and, in return, offer investors more attractive returns due to the term and the impossibility of early redemption.

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