For
Immediate Release February 18, 2004
For More
Information, Please Contact:
Louise Marshall,
ISDA New York, (212) 901-6000, lmarshall@isda.org
NEW AND AMENDED BRAZILIAN
REAL RATE SOURCE DEFINITIONS ANNOUNCED BY ISDA, EMTA AND THE FXC
New York, February 18, 2004 – The ISDA, EMTA and the Foreign Exchange Committee today
jointly announced amendments to Annex A of the 1998 FX and Currency Option
Definitions to (i) revise the definition for the BRL
PTAX (BRL09) Rate, (ii) add the EMTA BRL Industry Survey Rate and
the EMTA BRL Indicative Survey Rate as new rate source definitions.
Accordingly, effective as of March 1, 2004, Annex A is amended to
replace Section 4.5(c)(ii)(D) in its entirety and to
add new provisions Sections 4.5(c) (ii) (G) and (H) as follows:
(D) “BRL PTAX” or “BRL09” each means that the Spot Rate for a Rate Calculation Date will be the Brazilian Real/U.S. Dollar offered rate for U.S. Dollars, expressed as the amount of Brazilian Reais per one U.S. Dollar, for settlement in two Business Days reported by the Banco Central do Brasil on SISBACEN Data System under transaction code PTAX-800 (“Consulta de Cambio” or Exchange Rate Inquiry), Option 5 (“Cotacões para Contabilidade” or “Rates for Accounting Purposes”) by approximately 6:00 p.m., São Paulo time, on that Rate Calculation Date.
(G) "EMTA BRL INDUSTRY SURVEY RATE" or "BRL12" each means that the Spot Rate for a Rate Calculation Date will be the Brazilian Real/U.S. Dollar Specified Rate for U.S. Dollars, expressed as the amount of Brazilian Reais per one U.S. Dollar, for settlement in two Business Days, as published on EMTA’s web site (www.emta.org) at approximately 3:45 p.m. (São Paulo time), or as soon thereafter as practicable, on such Rate Calculation Date. The Spot Rate shall be calculated by EMTA (or a service provider EMTA may select in its sole discretion) pursuant to the EMTA BRL Industry Survey Methodology (which means a methodology, dated as of March 1, 2004, as amended from time to time, for a centralized industry-wide survey of financial institutions in Brazil that are active participants in the Brazilian Real/U.S. Dollar spot markets for the purpose of determining the EMTA BRL Industry Survey Rate).
(H) “EMTA BRL INDICATIVE SURVEY
RATE" or "BRL13" each means that the Spot Rate for a Rate
Calculation Date will be the Brazilian Real/U.S. Dollar Specified Rate for U.S.
Dollars, expressed as the amount of Brazilian Reais
per one U.S. Dollar, for settlement in two Business Days, as published on EMTA’s web site (www.emta.org)
at approximately 12:00 p.m. (São Paulo time), or as
soon thereafter as practicable, on such Rate Calculation Date. The Spot Rate shall be calculated by EMTA (or
a service provider EMTA may select in its sole discretion) pursuant to the EMTA
BRL Indicative Survey Methodology (which means a methodology, dated as of March
1, 2004, as amended from time to time,
for a centralized industry-wide survey of financial institutions that are
active participants in the Brazilian Real/U.S. Dollar markets for the purpose
of determining the EMTA BRL Indicative Survey Rate).
Practitioner’s Note:
Parties that specify in
confirmations that a particular version of Annex A applies to their trades
should reference Annex A effective as of March 1, 2004 if they desire to
incorporate any or all of the amended BRL PTAX (BRL09) rate definition, the
EMTA BRL Industry Survey Rate definition or the EMTA BRL Indicative Survey Rate
definition into their trades. If parties
do not specify in their confirmations a particular version of Annex A, the
above Brazilian Real rate source definitions will apply to trades that
incorporate the 1998 FX and Currency Option Definitions and have a trade date
on or after March 1, 2004.
ISDA is the global trade
association representing leading participants in the privately negotiated
derivatives industry. ISDA was chartered in 1985, and today has more than 600
member institutions from 46 countries on
six continents. These members include most of the world's major
institutions that deal in privately negotiated derivatives, as well as many of
the businesses, governmental entities and other end users that rely on
over-the-counter derivatives to manage efficiently the financial market risks
inherent in their core economic activities.
Information about ISDA and its activities is available on the
Association's web site: www.isda.org.
®ISDA is a registered trademark of the
International Swaps & Derivatives Association, Inc.
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