FINNEWS LATAM-Cetip plans to change calculation of Brazil's CDI rate-report
Cetip SA Mercados Organizados, the Brazilian clearinghouse that calculates the nation's most widely used interbank lending rate index, plans changes to the way it calculates the so-called CDI rate, in a bid to account for a new scenario of declining interest rates, Valor Econômico newspaper reported on Wednesday.
According to Carlos Ratto, head of Cetip's commercial division, the CDI will be calculated by a formula at moments when the number of quotations is considered statistically insufficient, Valor noted. Currently the CDI is calculated based entirely on bid and ask quotations. Another change is that, instead of eliminating the highest and lowest readings from the calculation of the CDI, the new system will give extreme readings a small weighting in the calculation of the rate, Ratto told Valor.
A spokeswoman for Cetip was not immediately reachable to confirm the content of the interview.