Cetip is the Latin America’s largest depository for OTC and private derivatives and securities and works as an interconnected financial network for the local market. Created in 1996 by the monetary council (CMN) it aims for promoting a safer market for financial institutions, helping the country to get over financial disadjustments and economic programs.
At Cetip all registrations, custodies and liquidations of fixed income assets take place, such as DI depository receipts, bills of exchange, real estate and housing notes, debentures, OTC contracts like swaps, NDFs and others. Moreover, Cetip commissioned the Brazil’s payments system (SPB), making payments for many assets to occur in the same day of liquidation, or D+0, which speeds common bank transfers and wire transfers, and bring safety and agility to the national cash.
Cetip also operates an electronic platform for trading secondary bonds and notes, giving them more liquidity. In 2009, Cetip was listed in Bovespa’s Novo Mercado, under the code CTIP3 with common stock only. Over 15,000 institutions use Cetip’s services, between hedge funds, banks in general, brokers, financing companies, leasing groups, housing groups, foreign investors and several other companies.
However, keep in mind that Cetip is not an insurance company. It aims to monitor all registered operations, and detect eventual signs of frauds, risks, mistakes and lacks of integrity. It has a system that spots any operations that remain out of the regular parameters for the market.