Euroclear SA/NV and CETIP - Câmara de Custódia e Liquidação have signed today a Memorandum of Understanding (MoU) encompassing a programme to build and develop a co-operative relationship in securities clearing and settlement matters.
The agreement aims at fostering the prosperity of the financial markets in Brazil as well as those markets covered by Euroclear. Both organisations will establish a basis of co-operation to promote cross-border investment and to gain greater knowledge of each other's activities. Furthermore, CETIP and Euroclear will explore mutually beneficial opportunities in both clearing and settlement operations as well as the possibility of establishing cross-border operational links.
Initial efforts will focus on:
- exchange of staff for cross-training programmes;
- regular meetings between senior management;
- mutual exchanges of information; and
- joint studies on topics related to securities clearing and settlement.
Edgar Ramos, Chairman of CETIP, commented: "We are pleased to have signed this agreement with Euroclear. We trust this valued relationship will contribute to the further development of operational efficiency, stability and reliable operations within our respective markets."
Pierre Francotte, Chief Executive Officer of Euroclear SA/NV, said: "This is Euroclear's first agreement of its kind with a central securities depository in South America. It emphasises our increased commitment to the region, with Euroclear having already served clients for about ten years through our office in São Paulo. We look forward to working even more closely with our partners at CETIP."
In 2007, Euroclear has signed MoUs with The Clearing Corporation of India Limited, The National Depository Center of Russia, as well as the China Government Securities Depository Trust & Clearing Co. The agreement with CETIP signifies Euroclear's comprehensive approach to building long-term relationships with emerging markets and in particular with all the BRIC BRIC refers to four emerging economies: Brazil, Russia, India and China. countries.