1. CBLC BRAZILIAN CLEARING AND DEPOSITORY CORPORATION
October 8, 2007
CBLC
BRAZILIAN CLEARING AND DEPOSITORY CORPORATION
CLEARING AND SETTLEMENT SERVICES 1 1

2. Evolution of Securities Settlement Transactions - (USD billion)
CBLC
CBLC IN NUMBERS
Evolution of Securities Settlement Transactions - (USD billion)
18.93
12.07
8.58
7.75
450
Quantity - Nº (million) 2 4 6 8 10 12 14 16 18 20
400
350
$ 232
300
250
Volume - USD (billion)
$ 336
$ 159
200
150
$ 118
$ 188
100
$ 121 50
$ 91
2004
2005
2006
2007*
Financial volume – Until July
Financial volume – After July
Number of settled trades – Until July
Obs.: Exchange rate from July 31st
* Until July 2007 2 2

3. Risk Management Services Central Bank Money Settlement
CBLC
CBLC CLEARING AND SETTLEMENT SERVICES
Novation
Risk Management Services
Clearing Services
Settlement Services
CSD Settlement
Central Bank Money Settlement 3 3

4. Risk Management Services Central Bank Money Settlement
CBLC
CBLC CLEARING AND SETTLEMENT SERVICES
Novation
Risk Management Services
Clearing Services
Settlement Services
CSD Settlement
Central Bank Money Settlement 4 4

5. CLEARANCE & SETTLEMENT SERVICES
STP – STRAIGHT TRHOUGH PROCESSING
Trade matching and confirmation are automated. The trades are locked in for settlement to CBLC.
Equities
Derivatives
Fixed Income
Real Time
CBLC 5 5

6. Risk Management Services
CBLC
CBLC CLEARING AND SETTLEMENT SERVICES
Novation
Risk Management Services
Clearing Services
Settlement Services
CSD Settlement
Central Bank Money Settlement 6 6

7. Risk Management Services
CBLC
CBLC… AS A CENTRAL COUNTERPARTY - CCP
Novation
Risk Management Services
Clearing Services
Settlement Services
CSD Settlement
Central Bank Money Settlement 7 7

8. CBLC becames a CCP at this moment
CENTRAL COUNTERPARTY
Equities
Derivatives
Fixed Income
Securities Lending
Trading information is captured on a real-time basis and in a STP fashion
All trades are previously collateralized
CBLC becames a CCP at this moment
BOVESPA’s Trading Systems
CBLC’s Risk Management, Clearing and Depository Services
STP 8 8

9. Hybrid model: Collateralization and Settlement Fund
CBLC
RISK MANAGEMENT SERVICES
Special Net Worth
CBLC Model
Settlement Fund
Collateralization
Participants Requirements
Hybrid model: Collateralization and Settlement Fund 9 9

10. RISK MANAGEMENT SERVICES
CBLC
RISK MANAGEMENT SERVICES
DEALING WITH FAILURES
DELIVERY
PAYMENT
1st: Securities Lending
2nd: Buy-in Procedures
1st: Collaterals posted by the defaulter
2nd: Settlement Fund
3rd: Special Net Worth 10 10

11. SECURITIES LENDING SERVICES - BTC
CBLC
SECURITIES LENDING SERVICES - BTC
Evolution of the quantity and volume of delivery failures treated by BTC
Nº of treated delivery failures
Treated delivery failures - volume (R$)
Quantity
volume (USD million)
25,968
93,751
61,254
30,883
USD 1,931
USD 1,294
USD 783
USD 453
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
2004
2005
2006
2007*
500
1,000
1,500
2,000
2,500
Exchange rate as of July 31st, 2007
* Until July 2007 11 11

12. Risk Management Services Central Bank Money Settlement
CBLC
CBLC CLEARING AND SETTLEMENT SERVICES
Novation
Risk Management Services
Clearing Services
Settlement Services
CSD Settlement
Central Bank Money Settlement 12 12

13. Risk Management Services Central Bank Money Settlement
CBLC
CBLC… AS A SECURITIES SETTLEMENT SYSTEM - SSS
Novation
Risk Management Services
Clearing Services
Settlement Services
CSD Settlement
Central Bank Money Settlement 13 13

14. CLEARANCE & SETTLEMENT SERVICES
CBLC
CLEARANCE & SETTLEMENT SERVICES
NET SETTLEMENT
Multilateral netting across different markets and instruments (equities, derivatives and fixed income instruments)
SFI-DVP Model 3 (BIS)
SETTLEMENT CYCLE
Equities - Cash
T+3
Equities - Derivatives
T+1
Fixed Income
T+0
T+1 14 14

15. CLEARANCE & SETTLEMENT SERVICES
CBLC
CLEARANCE & SETTLEMENT SERVICES
GROSS SETTLEMENT
Public offerings, initial public offerings, privatizations, special services and fixed income instruments
SFI-DVP Model 1 (BIS)
SETTLEMENT CYCLE
Equities
T+0
T+n
Fixed Income
T+0 15 15

16. CBLC’s DVP process CLEARANCE & SETTLEMENT SERVICES CBLC CBLC
Settlement Account at the Central Bank
3 p.m.
10 a.m.
CBLC
Settlement Account at the CSD S
Sell-side CSD Account
Buy-side Central Bank Account
Sell-side Central Bank Account
Buy-side CSD Account
3:25 p.m. 16 16

17. National System Financial Network (XML)
CBLC
RELATIONSHIP WITH CENTRAL BANK
CENTRAL BANK MONEY April New Brazilian Payment System (SPB)
Mitigation of Systemic Risk
Compliance with best practices and BIS’s international recommendations
CBLC: one of the SPB’s clearings
SPB
Central Bank
National System Financial Network (XML)
STR
CBLC
Account
CBLC 17 17

18. TRANSFER NETWORK SYSTEM - STR
CBLC
RELATIONSHIP WITH CENTRAL BANK
TRANSFER NETWORK SYSTEM - STR
CBLC
Settlement Account
Central Bank
Bank X
Bank Y
SPB PRINCIPLES
Real Time Gross Transfers
Overdrafts not allowed 18 18

19. CLEARANCE & SETTLEMENT SERVICES
CBLC
CLEARANCE & SETTLEMENT SERVICES
SPECIAL SERVICES
TESOURO DIRETO
Developed by Brazilian National Treasury in a partnership with CBLC
Enables natural people to acquire Federal Government Bonds directly through the internet
PUBLIC OFFERING SUPPORT SERVICES
Operational support for the IPOs
Centralization of institutional and retail investors allocation process
Gross Settlement Services
Objectives
• Popularize the government bond market.
• Encourage individuals to build up a long-term 19 19

20. PUBLIC OFFERING SUPPORT SERVICES
CBLC
PUBLIC OFFERING SUPPORT SERVICES
Public Offering Evolution - Quantity and Volume (USD billion) 60 52
USD 25
46 % 42 50
USD 20 40
118 %
USD 15 20 30
$ 21.0
USD (billion)
144 %
USD 10 13 20
$ 14.4
USD 5 10
$ 6.6
$ 2.7
USD 0
2004
2005
2006
2007*
Number
Volume
Exchange rate as of July 31st, 2007
* Until July 2007 20 20

21. RAQUEL FERRARI SILVA BEATO Settlement Services Supervisor
CBLC
THANK YOU!
(55)
RAQUEL FERRARI SILVA BEATO
Settlement Services Supervisor 21 21