REGULATION FOR TRADING IN THE PRIVATE FIXED INCOME BOVESPA SEGMENT BOVESPA FIX

Transcription

1 REGULATION FOR TRADING IN THE PRIVATE FIXED INCOME BOVESPA SEGMENT BOVESPA FIX CHAPTER I GENERAL DEFINITIONS CHAPTER II TRADING HOURS CHAPTER III AUTHORIZED PARTICIPANTS CHAPTER IV MARKETABLE ASSETS CHAPTER V TRADING SUSPENSION AND EXCLUSION CHAPTER VI TRADING ROUNDS Offers Closing of Trades Request for Quotation Auction CHAPTER VII PRICES Reference Price Daily Closing Price CHAPTER VIII RESPONSIBILITIES CHAPTER IX BM&FBOVESPA DISCIPLINARY POWER CHAPTER X FEES AND EMOLUMENTS CHAPTER XI OPERATIONAL EMERGENCY MEASURES CHAPTER X GENERAL PROVISIONS Page 1

2 INTRODUCTION This Regulation contains the general rules related to the services and activities inherent to the operations carried out in the Fixed-Income trading segment, managed by the BM&F BOVESPA S.A. Bolsa de Valores, Mercadorias e Futuros ( BM&FBOVESPA ). The operating procedures related to the provisions contained in this Regulation will be issued by the BM&FBOVESPA, and are an integral part hereof. CHAPTER I GENERAL DEFINITIONS Article 1 The following words and terms, when used with this Regulation, shall have the meanings specified below; a term in the singular includes the plural and vice versa: 1. Asset a security that presents specific trading, settlement and custody characteristics, traded in a trading ROUND under this Regulation. 2. BM&FBOVESPA the BM&F BOVESPA S.A. Bolsa de Valores, Mercadorias e Futuros, an entity that manages the organized OTC and exchange markets. Its main function is to maintain systems suitable for carrying out buy and sell transactions, auctions and special operations involving securities, rights and assets, in addition to managing clearing, settlement and custody systems. 3. BOVESPA FIX the fixed-income securities trading segment managed by the BM&FBOVESPA. 4. BM&FBOVESPA Supervisão de Mercado a non-profit civil association, responsible for the analysis, surveillance and inspection of the activities of the BM&FBOVESPA, of the participants trading IN the BM&FBOVESPA, and the agents which develop activities of clearing and settlement and/or custody under the rules of the BM&FBOVESPA. 5. BSM see BM&FBOVESPA SUPERVISÃO DE MERCADO. 6. Chief Operating and TI Officer BM&FBOVESPA Officer, responsible for the operations area. He reviews the appeals filed against decisions rendered by the BM&FBOVESPA Operating Officer. 7. Chief Executive Officer - principal executive of the BM&FBOVESPA, responsible for enforcing the policy and the resolutions taken by the General Meeting of the BM&FBOVESPA, as well as overseeing all the work of the BM&FBOVESPA. He reviews the appeals filed against decisions of the Chief Operating Officer. 8. Executive Board group of BM&FBOVESPA executives responsible for managing the BM&FBOVESPA business, according to the determination of the Chief Executive Officer. 9. Issuer the legal entity responsible for issuing an ASSET. 10. Divisibility Factor the maximum quantity of a specific ASSET, with respect to which the OFFERS must, necessarily, accept their divisibility into quantities equal to or greater than integer multiples of this factor. 11. Auction a special procedure, used in specific situations, in which the intervention of third party buyers or sellers is allowed. Page 2

3 12. Regular Auction the auction in which the interference of buying and selling TRADERS is allowed, in due compliance with the intervention criterion established by the BM&FBOVESPA. 13. Special Auction that the auction in which only the intervention of buying TRADERS is allowed, in due compliance with the intervention criterion established by the BM&FBOVESPA. 14. Round Lot number of a specific ASSET that enables dividing an OFFER into quantities that result in multiples of that lot. 15. Offer the offer made by electronic command by a PARTICIPANT to other PARTICIPANTS in a same ROUND, with the objective of buying or selling a certain quantity of ASSETS at specific conditions. An OFFER may be: (i) an Aggressive OFFER is the one entering the market to close an existing OFFER; (ii) a Neutral OFFER is the one entering the market and not closing an existing OFFER; (iii) an Aggressed OFFER is the (existing) OFFER which is closed by an aggressive OFFER. 16. Trader the individual who executes trades on the BOVESPA FIX on behalf of the PARTICIPANT, which he represents, as an agent. 17. Trading Parameters the set of characteristics of a specific ASSET used as a basis for trading and the criteria to establish special procedures Auctions as well as their duration and extension characteristics. They include information about the coding, form and minimum quotation variation, ROUND LOT, DIVISIBILITY FACTOR, the minimum volume of operations and minimum times of the offers to establish REFERENCE PRICE and ROUNDS in which the ASSET will be traded. 18. Participant the legal entity authorized by the BM&FBOVESPA to execute operations on the BOVESPA FIX. 19. Price the form of presentation of the ASSET quotation. It may be expressed by a rate, a premium (or discount) or by a monetary value. 20. Cross Price a buy OFFER and a sell OFFER will have a CROSS PRICE in the following situation: when the monetary value equivalent to the PRICE of the buy OFFER is greater than the monetary value equivalent of the sell OFFER. 21. Reference Price the PRICE that will serve as a parameter for the trades carried out, and may be changed daily or during the trading session. 22. Round a trading environment in which the buy and sell offers of the ASSETS are centralized, according to the modalities and settlement terms of the operations, or any other criterion established by the BM&FBOVESPA. 23. Trading System the electronic trading platform for ASSETS traded in the BOVESPA FIX segment. 24. Request for Quotation the procedure by which a PARTICIPANT requests, through the TRADING SYSTEM, to a minimum number of PARTICIPANTS in a same ROUND, firm OFFERS for a specific ASSET. 25. Tunnel the percentage interval above and below the REFERENCE PRICE, which serves as a parameter for the trades to be or not submitted to AUCTION. Page 3

4 CHAPTER II TRADING HOURS Article 2 The BOVESPA FIX will function on business days, in a continuous session during trading hours. Article 3 - The BOVESPA FIX trading hours will be set by the BM&FBOVESPA. Article 4 - The BOVESPA FIX system will be closed on Saturdays, Sundays, holidays and on days when the commercial banks headquartered in the capital of the State of São Paulo are closed for business. Sole Paragraph - The BM&FBOVESPA will publish a calendar indicating the dates on which the BOVESPA FIX will be closed for trading. CHAPTER III AUTHORIZED PARTICIPANTS Article 5 - PARTICIPANTS are authorized to trade in this market. Article 6 - PARTICIPANT will indicate a manager officer or managing-partner to be responsible for its operations. Article 7 To use the TRADING SYSTEM, PARTICIPANTS will have access to trading terminals, by means of a password furnished by the BM&FBOVESPA to the person responsible for their operations. Article 8 - The appointment, dismissal or substitution of the manager responsible for the operations should be immediately informed by the PARTICIPANT to the BM&FBOVESPA. Article 9 The access of TRADERS to the TRADING SYSTEM will be established by a system of safety passwords attributed by the PARTICIPANT itself, which will be responsible for all the acts practiced by its TRADERS. Article 10 - PARTICIPANTS will be accredited in the trading ROUNDS in which they are authorized to operate, according to the admission criteria established by the BM&FBOVESPA. CHAPTER IV MARKETABLE ASSETS Article 11 The ASSETS admitted for trading by the BM&FBOVESPA will be authorized for trading in the BOVESPA FIX Segment. Article 12 Requests for admission of ASSETS in the BOVESPA FIX will be analyzed by the BM&FBOVESPA, which will take into account, at its sole discretion, the characteristics of the ASSET and other relevant factors for the maintenance of appropriate levels of market transparency, safety and efficiency. Page 4

5 Article 13 -The BM&FBOVESPA will determine and divulge the TRADING PARAMETERS for each ASSET. CHAPTER V TRADING SUSPENSION AND EXCLUSION Article 14 - ASSETS will be suspended from trading when the BM&FBOVESPA becomes aware that: I there was information about a request for bankruptcy, provided that it indicates the issuer s risk of insolvency, judicial or extrajudicial reorganization; II a request for judicial or extrajudicial reorganization, or adjudication of issuer s bankruptcy were approved; III a decree was issued, by the Central Bank of Brazil or by the Superintendence of Private Insurance, requiring the intervention, extrajudicial liquidation or temporary special administration of the issuer, and the intervener, liquidator or directive council, as the case may be, is responsible for communicating the measure to the entity responsible for the management of the organized market in which its securities are most traded; and IV there is a determination from the CVM. Article 15 ASSET trading may be suspended when: I the admission requirements cease to be met, provided that the fault may be cured; II news or information becomes public that is vague, incomplete or that raises doubt as to their contents or origin that may significantly influence the quotation of the ASSET, or induce the investors in error. Article 16 ASSETS will be excluded from trading when: I the admission requirements cease to be met, provided that the fault may be cured; and II the faults or situations that justified the suspension have not been remedied. CHAPTER VI TRADING ROUNDS Article 17 Trading will be carried out in one or more ROUNDS authorized by the BM&FBOVESPA. Article 18 -The BM&FBOVESPA will create ROUNDS according to the characteristics of the ASSETS, their modalities and settlement terms, their liquidity or any other criterion it may define. Article 19 - The BM&FBOVESPA will accredit the PARTICIPANTS by ROUND. Page 5

6 OFFERS Article 20 - PARTICIPANTS will manifest their intention of buying or selling ASSETS by means of registering their OFFERS in the BOVESPA FIX. Article 21 All registered OFFERS are firm, and require the proponent PARTICIPANTS to fully honor them, according the conditions proposed, in the event they are closed by any other PARTICIPANT qualified to trade in the ROUND. Article 22 To register their OFFERS, PARTICIPANTS must indicate: I - the nature of the OFFER, if buy or sell; II the ASSET code; III - the quantity of ASSETS they intend to buy or sell; and IV - the PRICE at which they wish to buy or sell the ASSETS. Article 23 PARTICIPANTS may specify the following additional conditions with respect to: I the divisibility of the OFFER, admitting the following options: a. divisible OFFERS, in which the PARTICIPANT accepts closing of partial quantities of the indicated quantity; or b. indivisible OFFERS, in which the PARTICIPANT only accepts closing of the total quantity indicated. II the minimum quantity, in the case of divisible OFFERS, for which the PARTICIPANT accepts trading, in compliance with the DIVISIBILITY FACTOR. Article 24 The types of OFFERS accepted by the BOVESPA FIX are the following: I good-till-cancelled (GTC) an OFFER that remains in effect until it is cancelled or until the ROUND is closed; II good-till-date (GTD) - an OFFER that remains in effect until a specific date; if this date is such specific date, the Offer will be valid for the number of minutes defined by the proponent; III fill-or-kill (FOK) an OFFER which registration will be accepted only if the transaction is filled immediately and completely; IV immediate or cancel (IOC) an OFFER which registration will be accepted only if the transaction is totally or partially immediately filled. Any portions not executed immediately are automatically cancelled; V direct OFFER (OD) an OFFER in which a same PARTICIPANT simultaneously represents the buyer and the seller; VI quotation (COT) an OFFER that replies a request for quotation made by a PARTICIPANT. Article 25 OFFERS will be registered according to the best price principle. Page 6

7 Sole Paragraph OFFERS at equal prices will be registered according to the chronological OFFER of entry. Article 26 Registered OFFERS may be changed or cancelled by the participants at any time as of their registration, in due compliance with that provided for in paragraph three, art. 48 of this Regulation. Article 27 The OFFERS placed may, at the discretion of the BM&FBOVESPA, have a minimum period of validity during which no modification of their conditions will be allowed. Article 28 The price, quantity and validity period of registered OFFERS may be changed, in due compliance with that provided for in the previous article and in paragraph three, art. 48 of this Regulation. Article 29 Any OFFERS eventually changed will be considered, for purposes of priority, as registered at the time of the change. CLOSING OF TRADES Article 30 The closing of trades in the BOVESPA FIX occurs by interaction of buy and sell OFFERS for the same ASSET, in a same ROUND, provided that their PRICES are equal to or better than one in relation to the other. Article 31 Any OFFERS placed with equal prices will be closed according to a chronological criterion. In the case of indivisible OFFERS, closing will be subject to the DIVISIBILITY FACTOR of the ASSET. Article 32 The OFFERS that exceed the respective DIVISIBILITY FACTOR of the ASSET may be partially closed, in quantities equal to or greater than their DIVISIBILITY FACTOR, irrespective of the characteristic of divisibility with which they were placed. Article 33 The closing of trades will observe the operating limits of each PARTICIPANT. REQUEST FOR QUOTATION Article 34 PARTICIPANTS, in the ROUNDS in which they are qualified to operate, may direct REQUESTS FOR QUOTATIONS to other PARTICIPANTS qualified to carry out operations in the same ROUND, with the objective of receiving replies from these PARTICIPANTS. Article 35 The BM&FBOVESPA may restrict, at its discretion, the use of the REQUEST FOR QUOTATION mechanism for specific ASSETS. Article 36 REQUESTS FOR QUOTATION will not be considered as OFFERS, and will not obligate the requesting PARTICIPANT to carry out a trade, even if it receives replies to its request. Article 37 PARTICIPANTS requesting quotations should do so with the objective of carrying out trades. Page 7

8 First Paragraph The PARTICIPANT is prohibited from using the resource above just to research the prices charged by the other PARTICIPANTS, and from using such resource in an abusive manner. Second Paragraph The BM&FBOVESPA may analyze the behavior of the PARTICIPANT in relation to that provided for in the above paragraph, and may restrict the use of this function by the PARTICIPANT if it deems, at its sole discretion, that this mechanism is not being properly used. Article 38 To request a quotation, PARTICIPANTS shall indicate: I the ASSET code; II - the quantity of ASSETS for which the quotation is requested (optional); III the addressees of the request, admitting that the quotation is requested at the discretion of the PARTICIPANT from a PARTICIPANT or from a group of PARTICIPANTS, in due compliance with a minimum number that will be established by the BM&FBOVESPA. Article 39 The REQUEST FOR QUOTATION will be submitted exclusively to the PARTICIPANTS indicated by the requesting participant. Article 40 - The PARTICIPANT making the REQUEST FOR QUOTATION will be identified and may determine the period in which the quotation will be open to receive replies. Article 41 The PARTICIPANT receiving a REQUEST FOR QUOTATION may, if he so wishes, send a reply to the requesting PARTICIPANT, indicating the prices and respective quantities for which it is willing to buy and/or sell the ASSET object of the request. Article 42 Replies to the REQUEST FOR QUOTATION will be considered as firm OFFERS, and require the PARTICIPANT that sent them to honor them in the case they are closed by another PARTICIPANT. Article 43 The OFFERS placed in reply to a REQUEST FOR QUOTATION will be valid for a period defined by their proponent, which cannot be less than the minimum validity periods of the OFFERS established by the BM&FBOVESPA. Article 44 - The OFFERS placed in reply to a REQUEST FOR QUOTATION may be changed by their proponents, in due compliance with the minimum validity period, when this condition is established by the BM&FBOVESPA, and that provided for in paragraph three, art. 48 of this Regulation. AUCTION Article 45 OFFERS with closing conditions will be submitted to REGULAR AUCTION whenever the price presents, with respect to the last REFERENCE PRICE, a fluctuation greater than the percentages established in the TUNNEL, in order to permit the intervention of third parties and the improvement of prices for the parties. Article 46 The AUCTION will have a period of duration established by the BM&FBOVESPA, during which the OFFERS that caused the auction to the held will remain open, and the other PARTICIPANTS may register their OFFERS. Page 8

9 Article 47 During an AUCTION, the OFFERS may be registered, by the PARTICIPANTS, as follows: I participating in the AUCTION, OFFERS will be registered with closing conditions with respect to the OFFERS object of the AUCTION; or II not participating in the AUCTION, when OFFERS will be registered with no closing conditions with respect to the OFFERS object of the AUCTION; Article 48 In the case of OFFERS registered to participate in the AUCTION, they may be: I intervening, when they improve the price which offers the best closing condition of the AUCTION; or II non-intervening, when they do not improve the price which offers the best closing condition of the AUCTION. Paragraph One In the event of registration of an intervening OFFER in the AUCTION, and the difference between the AUCTION closing time and that of the registration of the intervening OFFER is less than the AUCTION extension period, then according to the trading parameters of the ASSET, the AUCTION closing time will be automatically changed, so that the difference between the new closing time and the time for registration of the intervening OFFER is equal to the AUCTION extension period. Paragraph Two Non-intervening OFFERS, as well as OFFERS that do not participate in the AUCTION, may be closed according to the OFFERS registered during the AUCTION, in due compliance with the criteria defined for closing the trade. Paragraph Three OFFERS that caused the AUCTION to be held, as well as those participating in the AUCTION, cannot be cancelled by PARTICIPANTS during the AUCTION, except if authorized by the BM&FBOVESPA, and only if improving them. Article 49 PARTICIPANTS may request the BM&FBOVESPA to cancel the OFFERS that caused the AUCTION to be held. Paragraph One For cancellation, PARTICIPANT must send a warning message to all the other PARTICIPANTS, indicating that there was an error when the OFFER was placed, and this message must enter the TRADING SYSTEM before another offer interferes in the AUCTION. Paragraph Two The BM&FBOVESPA shall be responsible, at its discretion, for accepting or not the request for cancellation. Article 50 The AUCTION procedure is valid during the entire trading hours. Article 51 During the AUCTION, the closing of trades with the ASSET that is being auctioned in the ROUND is suspended. Page 9

10 Article 52 In the event that an AUCTION and its extensions exceed the market closing time, the closing time for trading this ASSET will be automatically extended until the closing of the AUCTION. Article 53 A SPECIAL AUCTION may also be held. In this case, the rules set by the BM&FBOVESPA for each AUCTION must be observed. Article 54 The BM&FBOVESPA may, at its discretion, define any other circumstances that may cause an operation to be submitted to AUCTION. CHAPTER VII PRICES REFERENCE PRICE Article 55 THE REFERENCE PRICE at the opening of the auction may be, at the discretion of the BM&FBOVESPA: I the closing price of the day before, updated or not, according to the characteristics of the issue; or II the notional updated price of the paper; or III another price set by the BM&FBOVESPA, in view of market conditions. Article 56 THE REFERENCE PRICE may be changed during the trading period upon the occurrence of a new trade with a minimum financial volume or lot determined by the BM&FBOVESPA, in view of changes in market conditions. Article 57 THE BM&FBOVESPA may, at its discretion, determine the REFERENCE PRICE during the trading period. DAILY CLOSING PRICE Article 58 THE BM&FBOVESPA will fix and publish daily the official closing price of each ASSET, which may assume the following conditions: I Transacted condition, indicated by T, corresponding to the price of the most recent operation in which a quantity of ASSETS or a financial volume equal to or greater than the minimum parameters established by the BM&FBOVESPA were traded. In case of subsequent operations which, in total, represent, respectively, a quantity or volume equal to or greater than such parameters, the daily closing price shall be the weighted average price of these trades; II Buyer condition, indicated by C, when, at closing, there remain open balances of buy OFFERS which improve the price of the previous trade or, if this is impossible to determine, the REFERENCE PRICE at the opening of the auction, provided that these balances, individually, exceed a minimum quantity or volume, and that they have been displayed for a minimum period of time established by the BM&FBOVESPA; or III Seller condition, indicated by V, when, at closing, there remain open balances of sell OFFERS which improve the price of the previous trade or, if this is impossible to determine, the REFERENCE PRICE at the opening of the auction, provided that these balances, individually, Page 10

11 exceed a minimum quantity or volume, and that they have been displayed for a minimum period of time established by the BM&FBOVESPA; or IV Nominal condition, indicated by N, which is the price calculated by the BM&FBOVESPA at the beginning of the day, when none of the assumptions previously mentioned was established. Sole Paragraph. The quantity or volume amounts and the minimum time of display for the determination of the reference and official closing price will be divulged by the BM&FBOVESPA in the trading parameters of each ASSET. CHAPTER VIII RESPONSIBILITIES Article 59 PARTICIPANTS will be responsible for the good execution and settlement of operations, according to the characteristics of each ASSET, and for payment of emoluments and registration fees. Article 60 The following are duties of PARTICIPANTS, without prejudice to those set forth in the legislation in force, in the Bylaws and in the other regulations of the BM&FBOVESPA and the BSM: I conduct their operations according to suitable ethical and safety standards, so as not to compromise their capacity to settle them; II abstain from directly or indirectly contributing to the creation of artificial market supply and demand conditions, with impact on quotations; III provide information about the operations carried out, whenever requested by the BM&FBOVESPA or by the BSM; IV answer for the acts practiced by their TRADERS, employees or agents when exercising their functions. Article 61 PARTICIPANT shall maintain at the disposal of the BM&FBOVESPA, all the information, registrations and documents related to the operations carried out, and the BM&FBOVESPA or the BSM may request verbal or written clarifications, verify books, documents, files, registers and everything else that is necessary for the good and faithful compliance with the rules it is responsible for inspecting, whether in written or electronic media. CHAPTER IX BM&FBOVESPA DISCIPLINARY POWER Article 62 The BM&FBOVESPA may, at its discretion and irrespective of any other measure, cancel trades or request that the company providing settlement and custody services suspend the settlement, in the event of violation of any provision set forth in this Regulation. Article 63 The BM&FBOVESPA, in exercising its functions, irrespective of the adoption of any other measure, may: I preventively suspend the activities of the PARTICIPANT which is in a notorious situation of insolvency or illiquidity, although not yet having defaulted; and Page 11

12 II suspend, for an indeterminate period, the activities of the PARTICIPANT which, through its operations, places at risk its capacity to settle them. Article 64 - Without prejudice to that provided for in the previous article, violation of the provisions contained in this Regulation, as well as the use of non-equitable practices and the occurrence of any type of fraud or manipulation by the PARTICIPANTS, their managers, employees, TRADERS and agents, will subject the breaching party to the following penalties: I warning; II pecuniary fine; III suspension; IV exclusion of PARTICIPANT; V temporary disqualification, up to a maximum of twenty (20) years, to exercise the position of manager of PARTICIPANT. Article 65 - The application of the penalties established in the previous item is the responsibility of: I the CHIEF OPERATING AND IT OFFICER, in the case of warning; II the CHIEF EXECUTIVE OFFICER, in the case of fines and in other events. Article 66 The fine mentioned in article 64 will be defined by the BM&FBOVESPA according to the amount of the operation that originated it. Article 67 The fines may be waived by the BM&FBOVESPA, at its sole discretion, upon a formal and duly grounded request from the PARTICIPANT, Article 68 - An indispensable condition for approval of the request mentioned in the previous article is that, in the preceding ninety (90) days, no fine charged as a result of the same event has been waived. Article 69 Fines applied will be debited to the PARTICIPANT responsible for the operation that originated them, and their respective amount will be credited to the BM&FBOVESPA. Article 70 The fines set forth in this chapter are cumulative, do not have a compensating character, and may be charged irrespective of any administrative inquiry. Article 71 Decision on warning may be appealed, with suspensive effect, to the BM&FBOVESPA CHIEF EXECUTIVE OFFICER, within no later than five (5) days counted from the date of acknowledgement of the decision, and the decision rendered by the CHIEF EXECUTIVE OFFICER may be appealed to the BSM. Article 72 The decision on the fine may be appealed, with suspensive effect, to the BSM, within no later than five (5) days, counted from the date of acknowledgement of the decision. Article 73 The decision by the EXECUTIVE BOARD that imposed a penalty of suspension, exclusion or temporary disqualification on the PARTICIPANT may be appealed, with suspensive effect, to the BSM. Page 12

13 Sole Paragraph. The appeal mentioned in the caption of this article must be filed within a no later than ten (10) days, counted from acknowledgement of the decision. Article 74 No appeal can be made of the decisions rendered by the BSM provided for in articles 71 to 73. CHAPTER X FEES AND EMOLUMENTS Article 75 Registration fees and emoluments will apply to the operations carried out in the BOVESPA FIX, at the percentage and basis fixed by the BM&FBOVESPA. Article 76 PARTICIPANTS of the BOVESPA FIX will be responsible for payment of the fees and emoluments due. CHAPTER XI OPERATIONAL EMERGENCY MEASURES Article 77 With the objective of assuring efficient and regular functioning of the market, the BM&FBOVESPA may, when necessary, adopt Operational Emergency Measures, covering the markets and/or services managed by it. Article 78 - The Operational Emergency Measures may be applied upon the occurrence of the following events: I decree of state of defense, state of siege or state of public calamity; II war, serious internal turmoil; III - events of any nature, including those resulting from acts of God or force majeure that may affect or place at risk the regular functioning of the markets, the services and the settlement of operations. Article 79 The rules contained in the regulations and other Resolutions issued by the BM&FBOVESPA, including with respect to trade suspension, are applicable to the provisions contained in this Regulation. Article 80 It will be incumbent upon the CHIEF EXECUTIVE OFFICER to: I define which situation, event or fact will cause Operational Emergency Measures to be applied; II call the General Meeting to resolve on the Operational Emergency Measures to be applied; Article 81 If it is impossible for the CHIEF EXECUTIVE OFFICER to call the meeting referred to in article 80, item (II), and when the urgency of the situation so demands, he may, ad referendum of the General Meeting, adopt the Operational Emergency Measures deemed necessary 1. Article 82 The Operational Emergency Measures that may be applied are the following: 1 The rule that attributes responsibility to the General Meeting for ratifying the operational emergency measures adopted by the Chief Executive Officer is no longer applicable, due to the restructuring of the internal responsibilities established by the BM&FBOVESPA Bylaws currently in force. Page 13

14 I halt trading on the BM&FBOVESPA; II suspend the activities of PARTICIPANTS, the trading of ASSETS and the functioning of any market or service; III cancel trades carried out; IV change rules related to the markets or to the rendering of any service; and V change maturity terms. Article 83 The application of any Operational Emergency Measures does not exempt or release the PARTICIPANT and the client from compliance with any obligation assumed, especially: I the PARTICIPANT, as regards the responsibility for settlement of the operations carried out in the BM&FBOVESPA; and II the client vis-à-vis the PARTICIPANT, as regards the responsibility for settlement of the trades ordered. CHAPTER XII GENERAL PROVISIONS Article 84 This Regulation can only be changed by a decision of BM&FBOVESPA Board of Directors. Article 85 The rules contained in the regulations and other Resolutions issued by the BM&FBOVESPA, including with respect to trade suspension are applicable to the provisions contained in this Regulation. Article 86 If there is any conflict between the rules contained in the regulations and other Resolutions issued by the BM&FBOVESPA and those provided for in this Regulation, the latter shall prevail. Article 87 This Regulation is subject to the rules issued by the Brazilian Securities and Exchange Commission and the Central Bank of Brazil. Article 88 Omitted cases will be resolved by the CHIEF OPERATING and IT EXECUTIVE OFFICER or by the CHIEF EXECUTIVE OFFICER, according with their respective competences. Page 14