FMX | Connect – www.fmxconnect.com - (Reported 7/14/2010)
CETIP Business Update
· Total transactions processed at CETIP were almost flat (+0.2% Q/Q) sequentially. Transactions account for 13% of total revenues.
· But total volume processed declined -1.9% Q/Q to R$2,436 bn
· Total assets under custody (including non-custody paying assets) continue to increase as the company broadens its product offering
· Interbank Deposits (which contribute with 54% of total registration revenues, making it the product with the highest revenue contribution) continue to exhibit a downward trend and registered volumes declined -4% Q/Q over the past quarter. Registration revenues account for 28% of total revenues.
· Bank CDs (the second most profitable fixed income product and third overall, contributing with 14% of total registration revenues) continue exhibiting stable volumes and increased 4.4% sequentially
· Swaps ( the second most profitable product, contributing with 15% of total registration revenues) volumes increased 16% sequentially after two quarters of declining volumes.
· Debentures and fund shares (the main contributors of custody revenues, contributing with 62% and 16% of total custody revenues -25% of total revenues- respectively). Registered debentures increased 1% sequentially while registered funds increased 37% sequentially.
· CETIP processes electronic cash wires in excess of R$5,000 (TEDs) for the Brazilian Interbank Payments Chamber (CIP). Processed TEDs increased 9.5% sequentially. The Brazilian Banking Federation (FEBRABAN) reduced, as of May 21st, the threshold for wire transfers that can be processed as TEDs from R$5,000 to R$3,000. Previously, all wires between R$1,000 and R$5,000 were processed as DOCS using different systems.
· New initiatives: CETIP began registering financial letters (credit notes issued by financial institutions) last April and foreign derivatives after regulations passed this year mandating Brazilian companies to register overseas derivatives contracts. Revenue contribution from the new initiatives is still minimal (less than 0.1%).
Source: ERDESK
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