BM&FBOVESPA S.A. Securities, Commodities and Futures Exchange. Operational Regulations Bovespa Segment. 1. Ambiente

Transcription

1 BM&FBOVESPA S.A. Securities, Commodities and Futures Exchange Operational Regulations Bovespa Segment 1. Ambiente

2 1 / 73 Table of Contents 06 12/16/2008 TABLE OF CONTENTS DEFINITIONS..5 CHAPTER I INTRODUCTION CHAPTER II TRADING ELECTRONIC TRADING SESSIONS ASSETS TRADED TRADING OFFICIAL S DUTIES TRADING DAYS AND HOURS LOTS ACCEPTED TO BE TRADED ROUND LOT ODD LOTS TRADE ASSIGNMENT CHAPTER III TRADING ROOM ACCESS TO THE TRADING ROOM THE GENERAL PUBLIC BEHAVIOR IN THE TRADING FLOOR ACCESS TO OPERATIONS CONTROL ROOM CHAPTER IV ELECTRONIC TRADING SESSIONS AUTHORIZATION FOR ELECTRONIC TRADING SESSIONS BIDS AND ASKS IN ELECTRONIC TRADING SESSIONS AUCTIONS IN ELECTRONIC TRADING SESSIONS PRE-OPENING AND PRE-CLOSING PERIODS CHAPTER V TRADERS TRADERS TRADER QUALIFICATIONS IDENTIFICATION OF TRADERS PROHIBITIONS AFFECTING TRADERS REQUIREMENTS TO BE A TRADER ACCREDITATION OF THE EXCHANGE TRADER ACCREDITATION CANCELLATION ACCREDITATION RENEWAL TRADER CREDENTIAL MISLAID OR TRADER PASSWORD LOST CONDUCT REQUIRED FROM TRADERS PENALTIES APPLICABLE TO TRADERS THE EXCHANGE DECISIONS LIABILITY OF BROKERAGE FIRMS TERMINATION OF TRADERS CHAPTER VI AFTER-MARKET DEFINITION TRADING HOURS AFTER-MARKET TRADING PARAMETERS TRADE REGISTRATION AND SETTLEMENT OFFERS REGISTERED DURING REGULAR TRADING SESSIONS CHAPTER VII GATEWAYS DEFINITIONS AUTHORIZATIONS CHAPTER VIII CASH MARKET... 25

3 2 / 73 Table of Contents 06 12/16/ CASH MARKET FEATURES RULES APPLICABLE TO EARNINGS ON CASH MARKET SUBSCRIPTION RECEIPTS CHAPTER IX FORWARD MARKET FORWARD MARKET DEFINITIONS AND FEATURES TYPES AND FORMS OF FORWARD TRADES REGISTRATION TRADING SUSPENSION ON FORWARD MARKET EARNING RULES ON FORWARD MARKET CHAPTER X OPTIONS MARKET OPTIONS MARKET FEATURES OPTIONS WRITING OPTIONS EXERCISE REGISTRATION OF OPTIONS POSITIONS COLLATERAL SETTLEMENT TRADING SUSPENSION ON THE OPTIONS MARKET INDEX OPTIONS STOCK INDEX OPTIONS RULES APPLICABLE TO EARNINGS ON THE OPTIONS MARKET CHAPTER XI STOCK FUTURES MARKET STOCK FUTURES MARKET FEATURES PRICE AND DAILY POSITION RESETTLEMENTS CLOSING POSITIONS TRADING SUSPENSION ON THE STOCK FUTURES MARKET EXPIRATION DATE AND SETTLEMENT DATE EARNINGS CHAPTER XII BUY AND SELL OFFERS AND ORDERS DEFINITION OF BUY AND SELL ORDERS TYPES OF ORDERS DEFINITION OF BID OR ASK OFFERS TYPES OF OFFERS ORDER RECORDING SYSTEM CHAPTER XIII TRADING SESSIONS TRADING TYPES OFFER TRADINGS DIRECT TRADING AUCTION TRADING REGULAR AUCTION TRADING SPECIAL AUCTION TRADING FORWARD MARKET TRADING OPTIONS MARKET TRADING STOCK FUTURES MARKET TRADINGS CHAPTER XIV TRADING INTERVENTION CASH MARKET INTERVENTION FORWARD MARKET INTERVENTION OPTIONS MARKET INTERVENTION STOCK FUTURES MARKET INTERVENTION TRADES NOT SUBJECT TO INTERVENTION CRITERIA CHAPTER XVI DAY-TRADE OPERATIONS... 47

4 3 / 73 Table of Contents 06 12/16/ DEFINITION SETTLEMENT RESTRICTIONS CHAPTER XVI TRADE CORRECTIONS AND CANCELLATIONS OBLIGATION TO FULFILL TRADES CLOSED OR REGISTERED TRADE CORRECTION OR CANCELLATION CRITERIA REQUEST FOR TRADE CORRECTION OR CANCELLATION GENERAL PROVISIONS CHAPTER XVII TRADING INTERRUPTION INTERRUPTION OF THE ELECTRONIC TRADING SYSTEM OPERATION TRADE CORRECTION OR CANCELLATION DUE TO PROCESSING SYSTEM FAILURES CIRCUIT BREAKER CHAPTER XVIII TRADING SUSPENSION ATTRIBUTIONS GENERAL SUSPENSION TRADING SUSPENSION IN BRAZILIAN DEPOSITARY RECEIPTS (BDRS) SUSPENSION NOTIFICATION SUSPENSION PERIOD TRADING REOPENING CHAPTER XIX ORDERS EXECUTED BY COURT RULING CRITERIA FOR EXECUTING AN ORDER NOTIFICATIONS GENERAL PROVISIONS CHAPTER XX SELECTED SHARE PORTFOLIOS GENERAL FEATURES DEFINITIONS COMPOSITION OF THE SELECTED SHARE PORTFOLIO RECEIPTS ISSUANCE RECEIPT REDEMPTION EARNINGS FROM SHARES COMPRISING A SELECTED SHARE PORTFOLIO SUSPENSION OF TRADINGS INVOLVING STOCKS OF THE SELECTED SHARE PORTFOLIO RULES APPLICABLE TO RECEIPT TRADING CHAPTER XXI OPERATIONAL LIMITS OPERATIONAL LIMITS FOR BROKERAGE FIRMS NON-COMPLIANCE WITH OPERATIONAL LIMITS CHAPTER XXII - RIGHTS AND OBLIGATIONS OF BROKERAGE FIRMS DESIGNATION OF OPERATIONAL OFFICERS INFORMATION, RECORDS AND DOCUMENTS REFERRING TO THE TRADES EXECUTED BY BROKERAGE FIRMS RULES OF CONDUCT BROKERAGE FIRMS ACTING AS CLEARING AGENTS REQUIREMENTS FOR THE REPRESENTATIVES OF BROKERAGE FIRMS RIGHTS OF THE BROKERAGE FIRMS IN RELATION TO THEIR CLIENTS OBLIGATIONS OF BROKERAGE FIRMS RIGHTS OF BROKERAGE FIRMS ON FORWARD MARKETS RIGHTS OF THE EXCHANGE ON FORWARD MARKETS... 62

5 4 / 73 Table of Contents 06 12/16/2008 CHAPTER XXIII APPLICABLE SANCTIONS DUE TO VIOLATIONS OF THESE REGULATIONS FINES INFRACTIONS AND VIOLATIONS GENERAL PROVISIONS CHAPTER XXIV APPEALS AGAINST PENALTIES IMPOSED BY THE EXCHANGE APPEALS APPEAL WITH SUPERSEDEAS DEADLINES FOR FILING APPEALS ACCESS TO APPEAL RECORDS AND ADDITIONAL MEASURES CHAPTER XXV CLIENT FILE RECORD FILE SECURITIES TRADING NOTICE (ANA) CHAPTER XXVI PERSONS ASSOCIATED WITH BROKERAGE FIRMS CHAPTER XXVII BROKERAGE COMMISSION, FEES AND TRADING FEES BROKERAGE COMMISSION FEES AND TRADING FEES GENERAL PROVISIONS CHAPTER XXVIII DAILY INFORMATION BULLETIN (BDI) CHAPTER XXIX EMERGENCY OPERATIONAL MEASURES EMERGENCY SITUATIONS DUTIES EMERGENCY MEASURES CHAPTER XXX SUPPLEMENTARY RULES... 73

6 5 / 73 Definitions 06 12/16/2008 DEFINITIONS AFTER-MARKET trading activity outside the regular Session (after hours). APPEAL appeal filed by a party against a decision delivered by an agency or individual as regards a body or individual hierarchically above it, which decision may be upheld, reversed or overruled. Appeals may or may not be subject to supersedeas. Supersedeas means that the decision appealed against will remain stayed until it s reviewed by the superior hierarchical level. If there is no supersedeas, the decision appealed against will remain valid and will be reversed only if and when the appeal is accepted by a superior hierarchical level. ASSET bonds, securities and other financial instruments traded on the Exchange. AUCTION refer to Auction Trading. AUCTION TRADING or AUCTION offer made separately from others, which must mention the security, lot and price. There are two types of Auction Trading: Regular and Special. BONDS AND SECURITIES types of assets traded on the Exchange, which may be issued by limited liability companies or investment funds. BOVESPA HOLDING S.A. corporation controller of the Exchange and CBLC BOVESPA SUPERVISÃO DE MERCADO non-profit association, responsible for analysis and surveillance of the activities from the Exchange, CBLC, the Exchange s participants and agents responsible for the depository, clearing and settlement of operations. BOVESPA INDEX tracks the current quotation of a theoretical stock portfolio constituted on the base date of January 2, Since it s basically designed to be an indicator of the average market performance, its configuration seeks to be as near the actual composition of the Exchange s cash market as possible. BRAZILIAN SECURITIES AND EXCHANGE COMMISSION (CVM) federal governmental watch-dog agency in charge of regulating and overseeing the securities market. BROKER refers to BROKERAGE FIRM BROKERAGE COMMISSION amount charged by Brokerage Firms from their Clients for executing an order to buy or sell Assets. BROKERAGE FIRM institution authorized by the Central Bank of Brazil and the Brazilian Securities and Exchange Commission to execute trades on different markets, including securities and bonds on Exchanges or on the designated over-the-counter market. Firms may trade in either on their own account or on behalf of investors. BSM refers to the Exchange SUPERVISÃO DE MERCADO

7 6 / 73 Definitions 06 12/16/2008 CASH MARKET market where securities purchase and sale operations are carried out on the Exchange upon the settlement terms set forth by the CBLC Regulations and Operational Procedures. CBLC refers to BRAZILIAN CLEARING AND DEPOSITORY CORPORATION CHIEF EXECUTIVE OFFICER the Exchange's chief executive officer in charge of enforcing the policy and the decisions by the Board and running all the Exchange services. Reviews the appeals filed against the Chief Operating Officer s decisions. CHIEF OPERATING OFFICER The Exchange s officer in charge of operations, responsible for reviewing the appeals filed against the Trading Official s decisions. CIRCUIT BREAKER procedure to curb the Exchange index fluctuations by pausing trading sessions. CLEARING AGENT institution accredited to settle the trades made by Brokerage Firms on the Exchange. BRAZILIAN CLEARING AND DEPOSITORY CORPORATION proprietary corporation, wholly owned subsidiary of the Exchange that provides depository, clearing and settlement services, as well as risk control for trades carried out on the Exchange. CLIENT FILE record that Brokerage Firms must keep listing their clients or investors who trade in on the markets managed by the Exchange, containing personal and financial information, designated operational limits, and other information at the discretion of the Exchange, the brokerage firm itself and the Brazilian Securities and Exchange Commission (CVM). CLIENT or ASSIGNOR or INVESTOR individuals or corporations or group investment entities (investment funds or clubs) which trade in through Brokerage Firms or have their securities portfolios managed by them. CVM refers to BRAZILIAN SECURITIES AND EXCHANGE COMMISSION DAY-TRADE whenever an investor buys and sells the same security, in the same amount, in the same trading session, through the same Brokerage Firm and settles through the same Clearing Agent. The settlement of a Day-Trade is purely financial. DIRECT BUSINESS refers to Direct Trading. DIRECT TRADING or DIRECT BUSINESS whenever traders target at buying and selling the same security on behalf of different investors. ELECTRONIC TRADING SYSTEM computer terminals installed at Brokerage Firms, through which traders execute trades by sending out buy or sell offers.

8 7 / 73 Definitions 06 12/16/2008 EXCHANGE refers to SÃO PAULO SECURITIES, COMMODITIES AND FUTURES EXCHANGE. EXECUTIVE BOARD the Exchange s executives responsible for managing the Exchange business according to determination of the Chief Executive Officer FOREIGN INTERMEDIARY overseas institutions authorized and accredited to manage custody accounts of their own or of their clients or to act as a middle party for operations on several markets such as bonds and securities on Stock Exchanges or designated over-the-counter markets. They operate on their own or on behalf of their investors. FORWARD MARKET purchase and sale of securities upon settlement terms previously agreed by the buyer and the seller in line with those authorized by the Exchange. FORWARD TRANSACTIONS transactions executed on the forward, futures and options markets and differing from cash transactions in so far as the settlement takes place within a specified period. Also known as Derivatives. HOME BROKER automated brokerage service system connected to the Electronic Trading System that enables Brokerage Firms Clients to use the Internet for immediate or scheduled execution of security purchase or sale orders on the markets authorized by the Exchange. IBOVESPA refers to BOVESPA Index INDEX OPTIONS options market for the purchase and sale of rights on the Stock index. INTERRUPTION situation preventing the trading on the Exchange, due to its own decision or for reasons beyond its control. LOT a quantity of bonds or securities. MARKET MAKER the Exchange-accredited institutions whose main duty is to provide securities with liquidity which they are accredited for. NON-RESIDENT CLIENT an individual or corporation or group investment entity (investment fund or club) whose residence, main office or domicile is abroad, who/which operates through or has their security portfolio managed by a Foreign Intermediary. OFFER TRADING whenever traders show their intention to buy or sell Assets by keying an offer into the system through a specified command; they must specify the security, lot and price. OPTIONS refers to OPTIONS MARKET. OPTIONS MARKET comprehends trades of Derivatives.

9 8 / 73 Definitions 06 12/16/2008 PRE-CLOSING procedure adopted in the Electronic Trading System through which registration of buy and sell offers is made before the ending of the regular trading session. It s intended to prompt the formation of closing prices for the Assets involved. PRE-OPENING procedure adopted in the Electronic Trading System through which registration of buy and sell offers is made before the beginning of the trading session. It s intended to prompt formation of the prices to be used as the baseline when the Assets involved begin to be traded. BUY OR SELL ORDER the act through which Clients order Brokerage Firms to buy or sell Assets or the rights attached to them on their behalf and under the conditions they may specify. RECORD FILE refers to Client File. REGISTRATION FEE charge for the registration of forward, futures and options transactions. REGULAR AUCTION refers to Regular Auction Trading. REGULAR AUCTION TRADING allows buyer s and/or seller s intervention at the best price. REGULAR TRADING that in which Traders shout out their intention to buy or sell, and must mention the Asset, lot and price. ROUND LOT number of Assets set forth by the Exchange for the operations on the market it manages. SÃO PAULO STOCK EXCHANGE proprietary corporation, wholly owned subsidiary of the Exchange Holding S.A., based in the city of São Paulo, capital of the State of São Paulo, at Rua XV de Novembro, 275, whose main function is to maintain a complete infrastructure of well equipped facilities comprising integrated fully electronic systems and trading platform for the equities and equities derivatives markets. The Exchange operates the São Paulo Stock Exchange and organized over-the-counter markets. SETTLEMENT process coordinated by the CBLC that terminates the rights and obligations in securities and financial funds through their definitive transfer, i.e. delivery of securities and definitive transfer of financial funds (payment). SPECIAL AUCTION refers to Special Auction Trading. SPECIAL AUCTION TRADING offer made separately from others in which intervention is allowed only for purchases at the best price. STOCK FUTURES MARKET Asset purchase and sale at a price agreed upon by the parties to be due on a future definite and authorized date with daily position resettlements. TRADE ASSIGNMENT whether full or partial transfer of a transaction from one Brokerage Firm to another. Assignment is valid only upon the Trading Official s authorization.

10 9 / 73 Definitions 06 12/16/2008 TRADERS specialized professionals who execute trades on the Exchange on behalf of the Brokerage Firms they represent. Traders may or may not enter into an employment contract with Brokerage Firms. TRADING FEES charge for the Exchange services. TRADING ROOM area in the Exchange building especially designed for events and special auctions. TRADING OFFICIAL The Exchange official in charge of managing the Electronic Trading System. TRADING RULES procedures set forth by the Exchange to regulate Asset tradings on the basis of the distribution of earnings or rights (interest, dividend, bonus, subscription, split or reverse split). TRADING SESSION regular or special session or period for executing transactions.

11 10 / 73 Definitions 05 12/16/2008 CHAPTER I INTRODUCTION 1.1 THE EXCHANGE OPERATIONAL REGULATIONS This document, entitled "Operating Regulations of BOVESPA segment: Stocks and Stock Derivative Actions", aims at consolidating the rules on trading systems of the BOVESPA segment The Operations Regulations may at any time be amended by the Board of Directors of BM & FBOVESPA, and the changes be communicated to Participants In case of any conflict between the provisions in the Operational Procedure Manual and those of the Regulations, the latter will prevail.

12 11 / 73 Definitions 04 12/16/2008 CHAPTER II TRADING 2.1 ELECTRONIC TRADING SESSIONS The Exchange will hold daily sessions through the Electronic Trading System The trading will operate in accordance with the rules set out in these Regulations and the Operational Procedures Manual. 2.2 ASSETS TRADED The Assets traded in the sessions will be those allowed to be traded on the markets managed by the Exchange, namely: a) Shares, debentures and other bonds and securities issued by publicly-held companies; b) Portfolios linked to securities traded on exchange or designated over-thecounter market; c) Derivatives based on securities allowed to be traded; d) Promissory notes registered for public offering; e) Units in closed investment funds; f) Shares representing audiovisual investment certificates; g) Brazilian Depositary Receipts - BDR's backed by securities issued by publiclyheld companies or suchlike located outside Brazil; h) Non-standardized warrants for purchase and sale of securities; and i) Other bonds or securities authorized by the Securities Commission and the Exchange 's Chief Executive Officer In exceptional cases, other types of bonds or securities may be authorized to be traded at the Exchange 's discretion. 2.3 TRADING OFFICIAL S DUTIES Trading sessions will be managed by the Trading Official The position of the Trading Official will be held by the Officer responsible for the operations department of the Exchange. If absent, the Chief Operating Officer will designate an alternate, upon the approval of the Chief Executive Officer.

13 12 / 73 Definitions 04 12/16/ The Trading Official will require order, clarity and discipline during the trading session and may exclude anyone who has not immediately accepted his decisions In case any individuals breach these Regulations, The Trading Official will immediately notify their names to the Chief Operating Officer, so that the latter may impose disciplinary measures. These decisions may be appealed to the Chief Executive Officer without any supersedeas, to be reviewed by the end of the business day subsequent to such event The Trading Official may authorize the correction or cancellation of registered transactions, or determine the holding of auctions. 2.4 TRADING DAYS AND HOURS Trading hours will be decided by the Executive Board There will be no trading sessions on Saturdays, Sundays or holidays The Chief Executive Officer may determine that no trading take place on a certain business day by notifying the Securities Commission of the reasons for making such as decision The Chief Executive Officer may modify, delay or bring forward the start or end of the trading session by informing the Securities and Exchange Commission Forward Transactions coming due on a non-trading day are automatically rescheduled to the first subsequent business day on which trading takes place Every year, the Exchange will make available the schedule for the following year, and this - together with the trading hours schedule - will be part of the Operational Procedures Manual. 2.5 LOTS ACCEPTED TO BE TRADED On the Exchange -managed markets, trades may be executed in round lots or their multiples and, on the cash market, also odd lots. 2.6 ROUND LOT A round lot is the number of Assets determined by the Exchange for each underlying asset traded on the markets it manages, and a list of Assets with the corresponding round lots will be published periodically. 2.7 ODD LOTS Odd lot refers to an Asset quantity lower than its round lot.

14 13 / 73 Definitions 04 12/16/ TRADE ASSIGNMENT No trade previously registered may be totally or partially assigned unless authorized by the Trading Official.

15 14 / 73 Definitions 04 12/16/2008 CHAPTER III TRADING ROOM 3.1 ACCESS TO THE TRADING ROOM Access to the Exchange Trading Room is granted to the following when special auctions take place: a) Directors or Officers of the Brokerage Firms authorized to trade at the Exchange; b) the Exchange Executive Board, Executives and employees required for the Trading Room operations; c) the Exchange 's visitors and guests who have been previously authorized by the Trading Official; and d) others providing services to the Exchange, whose presence on the Trading Room is required. 3.2 THE GENERAL PUBLIC An area will be specially set aside for the general public to view the Trading Room; no manifestation interfering with trading will be permitted. 3.3 BEHAVIOR IN THE TRADING FLOOR Anyone behaving improperly on the Trading Room will be removed from the premises upon the decision by the Trading Official. 3.4 ACCESS TO OPERATIONS CONTROL ROOM Access to the Exchange Operations Control Room will be restricted to the following: a) the Exchange Executive Board, Executives and employees required for the operations b) the Exchange 's visitors and guests who have been previously authorized by the Trading Official; and c) others providing services to the Exchange, whose presence in the Operations Control Room is required, if duly authorized by the Trading Official.

16 15 / 73 IV Electronic Trading Sessions 03 12/16/2008 CHAPTER IV ELECTRONIC TRADING SESSIONS 4.1 AUTHORIZATION FOR ELECTRONIC TRADING SESSIONS The following may carry out transactions in Electronic Trading sessions: a) The Exchange Brokerage Firms; and b) other participants especially authorized by the Exchange 's Chief Executive Officer. 4.2 BIDS AND ASKS IN ELECTRONIC TRADING SESSIONS Electronic Trading sessions will operate through bids and asks registered in the Electronic Trading System and will comply with the provisions contained in these Regulations, the Operational Procedure Manual and the Electronic Trading System Operations Manual. 4.3 AUCTIONS IN ELECTRONIC TRADING SESSIONS An auction is a special procedure executed differently from other trades, and Asset, price and amount must be specified Auctions in Electronic Trading sessions may be executed under "regular" or "special" rules and must comply with the provisions contained in these Regulations, the Operational Procedure Manual and the Electronic Trading System Operations Manual. 4.4 PRE-OPENING AND PRE-CLOSING PERIODS Whenever so authorized by the Chief Executive Officer, Pre-Opening or Pre-Closing procedures may be adopted as follows: a) Pre-Opening: procedure adopted in the Electronic Trading System through which registration of bids and asks is made before the beginning of the trading session in order to originate the pricing to be used as baseline when the trading starts; and b) Pre-Closing: procedure adopted in the Electronic Trading System through which registration of bids and asks is made before the end of the regular trading session in order to originate the pricing of the closing price for the Assets involved The Chief Executive Officer will determine periods for Pre-Opening and Pre-Closing and the Assets to be submitted to these procedures.

17 OPERATIONAL REGULATIONS OF BOVESPA SEGMENT Page/Sheet 16 / 73 V Traders 05 12/16/2008 CHAPTER V TRADERS 5.1 TRADERS A Trader is a professional specially accredited by the Exchange to represent a Brokerage Firm on the Electronic Trading System Only Brokerage Firm Traders authorized to operate on the Electronic Trading System may execute transactions for the purchase or sale of Assets on behalf of and on the account of the Brokerage Firm which he is associated with on the markets managed by the Exchange. 5.2 TRADER QUALIFICATIONS Traders must have passed an examination or qualifying course held by the Exchange or an organization recognized by the Exchange and containing instructions related to the Brazilian Financial System, securities, exchange transactions, legislation and capital market regulations Candidates seeking to pass the examination or the qualifying course must achieve the minimum score set by the Exchange in all tests to which they are submitted The contents to be tested by the examination or qualifying course will be made known to candidates in advance The Exchange may, at its sole discretion, require traders to attend refresher courses on certain subjects. 5.3 IDENTIFICATION OF TRADERS Traders in the Trading Room must wear their credentials in a visible place for the purpose of immediate identification The Electronic Trading System identifies Traders through the use of their private and secret passwords that must be keyed into the system on logging in. 5.4 PROHIBITIONS AFFECTING TRADERS Traders may not: a) take part in any administrative, advisory or fiscal organization, or be employed by a company whose securities are traded or allowed to be traded on any exchange; or b) behave in disagreement with their duties on or off the Trading Room.

18 OPERATIONAL REGULATIONS OF BOVESPA SEGMENT Page/Sheet 17 / 73 V Traders 05 12/16/ REQUIREMENTS TO BE A TRADER The professionals accredited by Brokerage Firms as their Traders must fulfill the following requisites: a) be fully eligible under civil and business laws; b) have concluded high school; c) be qualified by examination or a course for Traders recognized by the Exchange; d) not have been found guilty of any offense against property, counterfeit, the public administration, or illegal gambling or vagrancy within the last five years; e) not have been declared insolvent, within the last five years, or have defaulted on payments to creditors, or, within the same period, have been a respondent to legal or collection actions; f) have been rehabilitated in the event of having been declared insolvent; g) not be submitted to legal collection actions, or be listed as a defaulter on the records by Clearing Houses due to the Issuance of Bad Checks (local acronym CCF) or the Credit Protection Service (local acronym SPC); h) not have been punished within the last two years or temporarily or permanently disqualified by the Exchange itself, the CVM, the Central Bank of Brazil or the Appeals Committee of the National Financial System; i) not have been convicted by the Federal, State or Municipal Public Powers in administrative disciplinary or fiscal proceedings within the last two years; j) enjoy unblemished reputation and show behavior appropriate to the position; and k) undertake to observe ethical standards of conduct and trading The Exchange may require proof of other requirements relative to the personal and property status of any Trader. 5.6 ACCREDITATION OF THE EXCHANGE TRADER The Executive Board can grant, renew or cancel Trader accreditation An application for accreditation of a Trader will only be considered if accompanied by any documents or declarations proving that the requirements set by the Exchange have been met.

19 OPERATIONAL REGULATIONS OF BOVESPA SEGMENT Page/Sheet 18 / 73 V Traders 05 12/16/ Applications for accreditation of Traders will be filed with the Exchange Audit, which will prepare them for subsequent forwarding to the Executive Board Before forwarding an accreditation application to the Executive Board, the Exchange will make a single official announcement on its Daily Information Bulletin (BDI), or make it known through electronic media, including the name of the Trader and the Brokerage Firm applying for the accreditation, so that any other Brokerage Firms may submit a written statement with their grounds to object to the accreditation Such statements will be received by the Exchange and kept in confidentiality As the term allowed to raise any objections is over, accreditation applications will be submitted to the Executive Board for approval Rulings on accreditation applications will consist of an acceptance or rejection alone, without stating any reasons Traders may be called before the Executive Board to provide clarifications in relation to any facts or events related to them The Executive Board may make exemptions in relation to the accreditation requirements, particularly in cases of transferring a Trader from one Brokerage Firm to another Regardless of meeting the requirements demanded by the Exchange for Traders, the Executive Board may reject an accreditation application and such decision may be appealed against to the BSM If any application for accreditation is rejected, a new application may only be submitted after a period of 90 days. 5.7 ACCREDITATION CANCELLATION Trader accreditation may be canceled if false documentation or information is found out in the statements submitted during the accreditation process. 5.8 ACCREDITATION RENEWAL The Executive Board may at any time require the renewal of trader accreditation or require documents or explanations on facts or events related to them.

20 OPERATIONAL REGULATIONS OF BOVESPA SEGMENT Page/Sheet 19 / 73 V Traders 05 12/16/ TRADER CREDENTIAL MISLAID OR TRADER PASSWORD LOST Should any Trader credential be mislaid, or any trader password lost, this must be immediately notified in writing to the Exchange Operations Officer CONDUCT REQUIRED FROM TRADERS Traders must maintain, both on and off the Trading Room and the Exchange premises, the highest level of personal decorum and conduct appropriate for their positions toward other Traders, the public, directors and officers of Brokerage Firms, members of the Executive Board, and Executives and employees of the Exchange In the course of exercising their duties, Traders should show sobriety, care and diligence inherent to every active and upright person in the management of their own affairs, and must loyally serve the Brokerage Firm which they are associated with Traders may not: a) make use, for their own benefit or that of others, with or without prejudice to their Brokerage Firm or its clients, of business opportunities they may become aware of in the course of their work; b) fail to act to exercise or protect the rights of their Brokerage Firms or their customers, or for the sake of obtaining advantages for themselves or others, refrain from using trading opportunities in the interest of their Brokerage Firms or their clients; c) acquire bonds or securities that they know to be of interest for their Brokerage Firms or their clients, or that the latter intend to acquire, or vice-versa, in order to resell them to make profit; d) execute an order or carry out any trade in their own name, or in that of their spouse or partner, children of minor age, dependents or in the name of any group, investment fund or club in which they have any interest through a Brokerage Firm other than the one that accredited them; e) execute an order or carry out any trade that directly or indirectly contributes to: creating artificial conditions of demand, supply and/or price; manipulate prices; execute fraudulent transactions or non-equitable practices; f) fully or partly assign a trade executed, even if not yet formally concluded, except if authorized by the Trading Official; or g) provide third parties with their access password to the Electronic Trading System.

21 OPERATIONAL REGULATIONS OF BOVESPA SEGMENT Page/Sheet 20 / 73 V Traders 05 12/16/ PENALTIES APPLICABLE TO TRADERS Any violations of the capital market legislation, these Regulations or other applicable rules, committed by Traders, will be looked into by means of administrative proceedings and they will be subject to the following penalties: a) verbal warning; b) written warning; or c) suspension In case of any violation is found out, the Trading Official - after summoning the Trader to provide explanations and defense - may impose the penalty of verbal or written warning to the violator, with or without removal of the access password to the Electronic Trading System, notifying the Chief Operating Officer If the Chief Operating Officer believes the event requires the imposition of a suspension penalty, the officer will decide the case and punish the violator The suspension penalty imposed by the Chief Operating Officer shall be effective for five business days at most, period when the trader must not be allowed to access the Electronic Trading System, as well as the respective reduction in the number of accesses allowed to the Brokerage Firm during the suspension period, and the Chief Executive Officer may set a longer suspension period A decision by the Chief Operating Officer to impose the suspension penalty may be appealed against, with superseadeas, to the Chief Executive Officer within one day as of being informed about the decision From the decisions delivered by the Chief Executive Officer will fit appeal to BSM Penalties imposed on during the summary process will be noted in the accreditation file of the Trader and the Brokerage Firm that accredited the offender will be notified THE EXCHANGE DECISIONS All Brokerage Firms, and their managers, employees, representatives and delegates, as well as their Traders must immediately abide by all the Exchange decisions LIABILITY OF BROKERAGE FIRMS Traders must at all times during Trading Sessions act on behalf of and on the account of the Brokerage Firm that accredited them, and the latter will be jointly accountable for any actions performed in the course of their duties, without any kind of restrictions to their liability.

22 OPERATIONAL REGULATIONS OF BOVESPA SEGMENT Page/Sheet 21 / 73 V Traders 05 12/16/ Brokerage Firms will inform the Exchange of their Traders and apply for their accreditation by signing the application, which will include a special clause assuming joint liability for all their actions on the Exchange during the regular exercise of their functions, including any violation of this Regulation or the legislation applicable TERMINATION OF TRADERS Any terminations of Traders by the Brokerage Firms that accredited them must be immediately notified in writing to the Exchange Audit The Operations Office may confidentially request the Brokerage Firm to report the reasons for such terminations.

23 22 / 73 VI After-Market 03 12/16/2008 CHAPTER VI AFTER-MARKET 6.1 DEFINITION The After-Market is the trading period outside the regular Trading hours. 6.2 TRADING HOURS After-Market trading hours are set by the Executive Board, which may change them whenever necessary. 6.3 AFTER-MARKET TRADING PARAMETERS The Chief Executive Officer shall: a) set the criteria for trading stocks on the After-Market; b) authorize the markets on which After-Market trades may be executed; c) determine the annual schedule for After-Market tradings; d) determine the types of orders that may be sent to the After-Market; e) set the financial limits, the amount of Assets, price variations and other parameters in relation to After-Market trades; f) determine the procedures to specify After-Market trades; and g) if applicable, determine the criteria used to calculate the Exchange Indices on the basis of After-Market stock quotations. 6.4 TRADE REGISTRATION AND SETTLEMENT After-Market trades will be registered on the same day and will follow the day's settlement cycle in accordance with the rules and procedures set forth by the CBLC. 6.5 OFFERS REGISTERED DURING REGULAR TRADING SESSIONS 6.51 Offers registered during regular trading sessions and not canceled may be closed during the After-Market Session.

24 23 / 73 VII Gateways 06 12/16/2008 CHAPTER VII GATEWAYS 7.1 DEFINITIONS The submission of orders via the Order Routing system by means of Gateways as made available by the Exchange is designed to serve Clients divided into three categories: a) Individual Investor Clients clients who are Individuals, Non-Financial Corporations and Investment Clubs; b) Institutional Investor Clients clients who are Mutual Investment Funds, Private Pension Funds, Insurance Companies and others; and c) Financial Institution Investor Clients refer to Financial Institutions' owned portfolios. 7.2 AUTHORIZATIONS The access to the order routing system via Gateways is exclusive to: a) End Clients Themselves refer to Individual Investor Clients, Institutional or Financial Institutions who place their orders for their own portfolio, directly from their computers into the routing systems made available by the Brokerage Firms; b) Order Conveyors refer to Order Conveyors who are: (i) Intermediary Institutions employees; (ii) Portfolio managers who are individuals linked to Intermediary Institutions; and (iii) Independent Agents linked to Intermediary Institutions. Order Conveyors place the orders received from their clients into the routing systems made available by Brokerage Firms. c) Order Managers refer to: (i) Portfolio Managers who are individuals or corporations duly accredited by CVM to perform their activities; and (ii) Intermediary Institutions and; (iii) Portfolio managers from clients domiciled abroad duly registered with the regulator institution at the origin country.

25 24 / 73 VII Gateways 06 12/16/2008 Order Managers place orders for further allocation among their clients into the routine systems made available by Brokerage Firms. Order Managers must be registered with the Exchange, owns a client identification code, which is single and special, named manager account, which must be used to route the orders from their clients. d) Intermediary Institutions refer to: (i) Financial institutions which are members of the Securities Distribution System (Brokerage Firms and Securities Dealers; Investment Banks and Multiple Banks with investment portfolios); (ii) Managers of Corporate Portfolios, and (iii) Intermediary financial institutions domiciled in a country where the capital market regulator institution of such country has sealed, with CVM, a mutual cooperation agreement enabling the exchange of investors financial information, or be signatory to the IOSCO Multilateral Memorandum of Understanding Intermediary Institutions may act as Order Conveyors or Order Managers, depending on the way they are supposed to act for their clients, concerning the routing systems made available by Brokerage Firms.

26 25 / 73 VIII Cash Market 03 12/16/2008 CHAPTER VIII CASH MARKET 8.1 CASH MARKET FEATURES This is the market where Asset purchase and sale transactions are conducted on the Exchange, whose physical delivery and by CBLC Regulations and Operational Procedures The rules provided in the Operational Procedure Manual are applicable to the cash market. 8.2 RULES APPLICABLE TO EARNINGS ON CASH MARKET Trading rules for Assets will be based on the information received by the Exchange from Issuing Companies, issuing agents or stock registration service As of the date indicated as the beginning of the ex-dividend period (providers dividends, bonuses, subscriptions, etc), securities traded on the cash market will have no rights to those dividends and will be announced with the prefix "EX" for eight consecutive Trading Sessions Trades involving Subscription Rights will be allowed as of the date indicated as the beginning of the subscription until the fifth business day prior to the end of the term designated by the company for the exercise of subscription rights New stocks issued by Issuing Companies will be traded under different conditions in relation to futures rights, namely: a) WITH full rights and WITH pro-rata temporis rights; or b) WITHOUT rights if the issuing company, issuing agent or stock registration service provider had set forth this distinction in advance Should an issuing company set different "pro rata temporis" rights percentages, the Exchange may, at its own discretion, set different conditions for stock trading. 8.3 SUBSCRIPTION RECEIPTS Pursuant to specific regulations, only fully paid-in stock Subscription Receipts will be allowed to be traded Subscription Receipts may be traded only on the cash market.

27 26 / 73 VIII Cash Market 03 12/16/ Trading will take place exclusively in the period preceding the authorization for the issuing company's capital increase Any subscription rights outstanding in relation to the Subscription Receipts traded will belong to the original underwriter Should any subscription not be executed due to the lack of the proper authorization, the holder of the corresponding Subscription Receipt will be reimbursed by the company only the amount paid by the original underwriter. The Exchange, the CBLC, intermediary agents and bona-fide assignors will be exempt from all and any liability for said payment.

28 27 / 73 IX Forward Market 03 12/16/2008 CHAPTER IX FORWARD MARKET 9.1 FORWARD MARKET DEFINITIONS AND FEATURES Forward trade is the purchase and sale of Assets whose physical and financial settlement date is set in advance by the parties selected from those authorized by the Exchange The following definitions apply to the forward market: a) Underlying Asset - Asset allowed to be traded on the Exchange forward market; b) Forward seller - a Brokerage Firm, acting on its own account or on behalf of investors, assuming the obligation of forward selling underlying Assets, thereby being entitled to receive the amount involved on its settlement date after the Assets have been delivered; and c) Forward purchaser - a Brokerage Firm, acting on its own account or on behalf of investors, assuming the obligation of forward purchasing underlying Assets, thereby being entitled to receive them on their settlement date after the payment has been made The deadline for settlement requests, collaterals, coverage, margins and means of settlement may be found in the CBLC Regulations and Operational Procedures. 9.2 TYPES AND FORMS OF FORWARD TRADES The Exchange will register the following types of forward trades: a) common forward - to be physically and financially settled at the agreed face value; b) flexible forward - one that has as a specific feature that differentiates it from common forward the possibility of enabling the forward purchaser to replace underlying stock of the initially agreed contract; c) dollar forward whose contractual price will be corrected daily by the variation of the average foreign exchange rate of the Brazilian Real (BRL) against the US dollar (USD), as of the trade day to the closing day, excluding first and last; and d) index points forward - allows the secondary trading of forward contracts, in which the financial settlement amount is calculated by converting the value of the index points into local currency.

29 28 / 73 IX Forward Market 03 12/16/ Forward trades will be settled in advance or on the expiration date Settlement in advance of a forward trade may occur at the purchasers discretion upon their request. 9.3 REGISTRATION Forward contracts will be distinctly registered by the CBLC in accordance with the provisions of its Regulations and Operational Procedures for each purchasing and selling investor. 9.4 TRADING SUSPENSION ON FORWARD MARKET The trading suspension of a given Asset on the cash market will cause it to be automatically suspended on the forward market as well. 9.5 EARNING RULES ON FORWARD MARKET Dividends, cash bonuses and other money earnings, stock bonuses, stock splits, and any other benefits assigned or distributed related to the bonds or securities underlying a forward transaction will belong to the forward purchasing investor as of the registration of such transaction with the Exchange The rules applicable to earnings on the forward market are provided in the CBLC Operational Procedure Regulations.

30 29 / 73 X Options Market 06 09/30/2013 CHAPTER X OPTIONS MARKET 10.1 OPTIONS MARKET FEATURES The options market comprises tradings of rights granted to Asset holders of call and put options The following definitions apply to the options market: a) Underlying asset Asset allowed to be traded on the Exchange to which an option refers; b) cosition blocking whenever writers prevent the exercise of a portion or the entirety of their positions, upon prior purchase of an option from the same series previously issued; c) coverage - deposit with the CBLC covering the entire underlying Assets to which an option refers; d) expiration date - last day to trade or exercise options; e) position closing - whenever writers, through purchase, or holders through the sale of options from the same series, terminate all or a part of their position in the same Brokerage Firm; f) exercise - whenever holders of options contracts exercise the right to buy or sell the option's underlying Asset at the strike price; g) collateral - margin or coverage pledged with the CBLC; h) writer - the grantor of an options contract who assumes the obligation, if the holder exercises the option, to sell the underlying Asset to or buy it from the holder; i) writing - originating option contracts to be traded on the market; j) round lot - number of underlying Assets each option refers to; k) margin - cash, bond or securities deposit pursuant to the percentage and form set by the CBLC; l) call option - the right granted to the holder (buyer) of the options contract, if it so desires, to buy from the writer (seller), obliging the latter to sell, by a predetermined date, a round lot of an underlying asset at a previously fixed price (strike price);

31 30 / 73 X Options Market 06 09/30/2013 m) american style option - option that may be exercised any time from the business day following the purchase (D+1) through its expiration date; n) european style option - option that may only be exercised on the expiration date; o) put option - the right granted to the holder (buyer) of the option, if it so desires, to sell to the writer (seller), obliging the latter to sell a round lot of an underlying asset at a previously stipulated price (strike price) by a certain date; p) non-adjusted option - series with no strike price resettlement in relation to the distribution of subscription or preemptive rights, or cash dividends; q) adjusted option - series with adjustment of the exercise price in relation to distribution of earnings; r) position - balance resulting from one or more operations with options from the same series, executed on behalf of the same investor, through the same brokerage firm. Depending on the nature of the balance, the position will be writing or holding and depending on the collateral provided, covered or naked; s) offsetting positions - those of inverse nature (holder and writer), intermediated by the same Brokerage Firm, on behalf of the same investor, in the same amount, for the same options type and same underlying Asset, but from different series; t) strike price - the price at which the holder will be entitled to buy or sell the option's underlying Asset; u) premium - the price of the options when traded in a session; v) series - options of the same type (put or call) written on the same underlying Asset, with the same expiration date and strike price; w) holder - the investor holding the right to exercise an option; and x) last trading day - day immediately preceding the expiration day of the option 10.2 OPTIONS WRITING Options may only be written on explicitly authorized series Writing is performed through the sale of options in a Trading Session.

32 31 / 73 X Options Market 06 09/30/ On the expiration date no opening of new positions of a series to be expired on such day will be allowed; only trades for closing positions will be allowed until the time set for the end of the right to exercise the option Obligations arising from the writing will be terminated: a) at the position closing; b) by exercising the position; or c) on the options exercise expiration, if it has not been exercised by expiration date OPTIONS EXERCISE Holders of American style options may exercise them any time as of the Trading Session on the day following the purchase through the expiration date Holders of European style options may only exercise them on their expiration date Options not exercised within the stipulated term will expire In order to exercise options their holder must show their intention upon exercise request The exercise will be met by a writing position in line with the following criteria: a) firstly, by a draw among covered positions; and b) in case there are no more covered positions left by draw, so among naked positions The exercise of the options will require the registration of the cash purchase and sale operation of the underlying Asset at the strike price If the strike price of a series of call options exceeds the underlying Asset cash price or if the strike price of a series of put options is below underlying Asset cash price, the exercise of the options right will only be allowed when the gap is not significant for the continuity of the underlying Asset prices REGISTRATION OF OPTIONS POSITIONS Writers and holders of positions will be registered by the CBLC, under a different codes for each investor in the form of bookkeeping entries for each series of options traded All trades will be liable to a mandatory registration fee paid by the investors and charged through the CBLC representing the Brokerage Firms involved.

33 32 / 73 X Options Market 06 09/30/ Brokerage Firms will specify the operation investors in order to register the positions, on the same day of their trading As of the registration, the CBLC will be in charge of operations settlement, in accordance with the rules provided in its Operational Regulations and Operational Procedures COLLATERAL The CBLC may at any time ask participants in the options market, whether holders or writers, to provide the collateral it believes is required for a fair and orderly market or may require strikes to be settled in accordance with the provisions of its Operational Regulations and Operational Procedures SETTLEMENT Settlement of put and call options will be made by the CBLC in accordance with the provisions of its Regulations and Operational Procedures TRADING SUSPENSION ON THE OPTIONS MARKET Any trading suspension related to the underlying Asset on the cash market will automatically cause the suspension of the trading of options on that Asset as well the receipt of the orders If trading in Underlying Security is suspended due to a ruling for intervention, extrajudicial settlement, temporary administration, filing for bankruptcy, declaration of bankruptcy of the issuer, by CVM or court ruling, the Exchange will execute a special auction procedure aimed exclusively at closing out positions if there is no legal impediment or impediment in the bylaws against doing so Taking into consideration what is set forth in section 2.2., if there is legal impediment or impediment in the bylaws against execution of special auction proceedings aimed exclusively at closing out positions, the Exchange will arbitrate the closing price of the option positions For determination of the series that may be exercised during the suspension period, the Exchange will use the price resulting from the special auction procedure as a reference for the exercise of the option, if there is no legal impediment or impediment in the bylaws against this execution Considering that set forth in item 2.4, if there is legal impediment or an impediment in the bylaws against the execution of special auction proceedings, the Exchange will arbitrate the reference price to exercise the options.

34 33 / 73 X Options Market 06 09/30/ INDEX OPTIONS Index options trading: a) the Exchange may authorize the trading of options series whose strike price is set in index points per underlying Asset and having previously announced the indicators that may be used to calculate the economic value of the index point; b) In the event of extinction of the indicator selected, its legal successor will be used to update the economic value of the index point; c) The Exchange may authorize to trade in series whose strike price in points will be equivalent to the Unit Price of the underlying Assets, resulting from combining the variation in one of the indicators authorized for updating with a predetermined interest rate; and d) The opening of an options series as described in this item will use the same method as for those options series with strike prices in Brazilian reais (BRL) US-dollar based series: a) for the series described in item referring to the USD rate, each index point will be equivalent to one hundredth of the average foreign exchange rate of the USD against the BRL on the previous business day, defined as "Quotations for Accounting", as determined by the Central Bank of Brazil and announced through SISBACEN, transaction PTAX 800, option "5", which will be used in four decimal places; and b) if the rate determined by the Central Bank of Brazil is not available for any reason, the rate will be arbitrated The Exchange will provide a daily report with the equivalent to the strike price in Brazilian reais (BRL) for each authorized series Premiums of the options series described in this item will be quoted in Brazilian reais (BRL) Index option series opened as provided in this item are subject to the same rules and procedures set by the Exchange and the CBLC for the options market STOCK INDEX OPTIONS Tradings of put and call options based on indices is allowed The trading unit is the index multiplied by the Brazilian reais (BRL) value of each index point, whose economic value will be set by the Exchange in Brazilian reais (BRL).

35 35/ 73 X Options Market 06 09/30/ The premium and strike price quote will be expressed in index points The Exchange will daily calculate the settlement index to be used to exercise index options. The settlement value of a strike operation will be equivalent to the gap, in local currency, between the settlement index and the strike price RULES APPLICABLE TO EARNINGS ON THE OPTIONS MARKET On the options market, rights and yield, including dividends, bonuses, warrants and others conferred on underlying securities on the cash market will be treated differently depending on whether the options are adjusted or non-adjusted For options series with strike prices set in index points, the opening of a series may be authorized by resettling the strike price (adjusted options) or with no resettlement (non-adjusted options) For those options series with strike price resettlement (adjusted options), earnings will be treated as follows: a) for dividends or other cash earnings, the strike price is resettled on the day the stock is firstly traded on an "EX" basis on the cash market, deducting the amount of the net dividend from the strike price, and settlement is made with "EX" securities; b) for subscription or any other preemptive rights, the strike price is resettled on the day the stock is firstly traded "EX" on the spot market by deducting the notional value of the right. Calculation of the right is based on the latest price prior to the "EX" date, and settlement made with "EX" securities; and c) for bonus or any earnings on new stocks, settlement is made with "EX" securities, and the amount and strike price resettled in proportion to the earnings percentage, on the date the exercise is requested. In case earnings allow price and quantity conversion into multiples of a round lot, the adjustment will be resettled on the day the stock is firstly traded on an "EX" basis on the cash market Earnings for options series with no strike price resettlement (non-adjusted options) will be treated as follows: a) the strike price is not resettled for dividends or other cash earnings or for stock subscription rights. On the exercise date, the strike price is resettled only in the amount the indicator used for correcting index points has varied from the opening of the series to its expiration; and b) for bonus or any earnings on new stocks, the amount and exercise price are resettled proportionally to earnings percentage and settlement is

36 35/ 73 X Options Market 06 09/30/2013 c) made with "EX" securities. Resettlement is made on the date of exercising the option. In case earnings allow price and quantity conversion into multiples of a round lot, the adjustment will be resettled on the day the stock is firstly traded on an "EX" basis on the cash market

37 36 / 73 XI Stock Futures Market 03 12/16/2008 CHAPTER XI STOCK FUTURES MARKET 11.1 STOCK FUTURES MARKET FEATURES The stock futures market comprises the purchase and sale of Assets at a price agreed upon by the parties for expiration on a predetermined authorized date Trades on the stock futures market refer to Assets traded on the cash market managed by the Exchange and allowed to be traded The following definitions apply to the stock futures market: a) daily resettlement daily adjustment based on the settlement price of all positions on the stock futures market. Such resettlement takes place through the daily adjustment of debits or credits in investors accounts depending on the negative or positive variation in their positions; b) coverage - seller's deposit with the CBLC through a Brokerage Firm covering the all the Assets to which its position refers; c) expiration date the last date on which an investor may close a position in the stock futures market by executing an offsetting trade. Positions not closed by the end of this day will be submitted to physical settlement; d) position closing execution of a trade inverse to the position which partly or wholly terminates it; e) collateral coverage and/or margin deposit made by an investor with the CBLC; f) physical settlement settlement by delivering the underlying Assets of the trade executed on the stock futures market; g) margin deposit in the amount required by the CBLC of short buyer and seller investors to be made in cash or Assets acceptable to the CBLC for the purpose of ensuring the fulfillment of the obligations assumed through their positions on the stock futures market; h) position book-entry balance in terms of number of Assets resulting from one or more trades made by the same investor for the same expiration date, through the same Brokerage Firm and the same Clearing Agent. Depending on the trades executed on the stock futures market, this balance may be purchasing or selling; i) settlement price price set each day by the Exchange on the basis of its criteria previously announced to the market for daily adjustments to positions on the stock futures market; and

38 37 / 73 XI Stock Futures Market 03 12/16/2008 j) last trading day - expiration date PRICE AND DAILY POSITION RESETTLEMENTS Securities admitted to trading on the stock futures market will use the same method for quotations as the cash market Positions at the end of each Session will be resettled on the basis of the adjustment as determined by the Exchange for the day for each Asset with its corresponding expiration date Settlement prices will be adjusted daily and announced by the Exchange after the Session Closing. Before sessions start, investor positions will be appropriately adjusted by applying the settlement price to the existing CLOSING POSITIONS Closing a position on the stock futures market will take place through the offsetting trade for said position, involving the same investor, Asset and expiration date A position may be partly or fully closed The operational rules and procedures for position settlement are stated in the Regulations and Operational Procedures issued by the CBLC TRADING SUSPENSION ON THE STOCK FUTURES MARKET Trading on the stock futures market will be suspended whenever the trading of the corresponding Asset on the cash market is suspended EXPIRATION DATE AND SETTLEMENT DATE Securities will be traded on the Exchange's stock futures market until the expiration date as determined and announced by the Exchange Positions not closed by expiration date will be settled by physically delivering the underlying Asset of the trade in accordance with the rules set out in these Regulations and in the Operational Procedures determined by the CBLC for the stock futures market Settlement date for trades executed on the stock futures market will be on the third day after expiration The settlement price for the trades on the stock futures market corresponds to the weighted average of quotations of the trades executed in the securities on the cash market during the trading period determined by the Exchange.

39 38 / 73 XI Stock Futures Market 03 12/16/ EARNINGS Dividends and cash earnings: a) the price of an Asset on the stock futures market will be adjusted on the day it is traded on an EX -rights basis on the cash market; b) the net value of the earnings approved will be deducted from the Asset's settlement price on the last day of WITH -rights trading; c) as of the time an Asset starts to be traded as EX -rights on the cash market, it will also begin to be so on the stock futures market; and d) trade settlement in accordance with CBLC Regulations and Operational Procedures will be held on a EX -rights basis Asset earnings a) positions will remain in the WITH -rights status. Tradings on the stock futures market will be executed with positions in the WITH -rights status; and b) on the settlement date of the trades on the stock futures market, under the terms of the CBLC Regulations and Operational Procedures, settlement will be made with EX -rights Assets, and the resettlement will be made in the amount and price of the positions in proportion to the procedure approved by the issuing company Subscription rights: a) positions will be converted into the EX -rights situation on the same day that a security begins to trade as such on the cash market; and b) the settlement price will be adjusted by the gap between the previous settlement price with rights and the notional value of the subscription right as determined by the CBLC.

40 39 / 73 XII Buy and Sell Offers and Orders 05 12/16/2008 CHAPTER XII BUY AND SELL OFFERS AND ORDERS 12.1 DEFINITION OF BUY AND SELL ORDERS Asset buy or sell orders are the action through which clients order a Brokerage Firm to buy or sell Assets, or the rights attached to them, on their behalf and under conditions specified by them TYPES OF ORDERS The conditions clients may specify for the execution of their orders must be in accordance with one or more of the following Types of Order: a) market order - specifying only the number and characteristics of the Assets or the rights to be bought or sold, to be executed as of the receipt time; b) limit order - to be executed only at the price specified by the client or a better one; c) managed order - specifying only the number and characteristics of the Assets or the rights to be bought or sold, with execution at the Brokerage Firm's discretion; d) discretionary order- made by the manager of a securities portfolio or an agent representing more than one client, in which the agent making the order determines the conditions that must be met for the order to be executed. After its execution, the order maker will designate the names of the investors to be specified, the number of securities or rights to be attributed to each of them and the corresponding price; e) financing order- constituted by a buy or sell order for an Asset or right on the Exchange-managed market, with a concomitant buy or sale order for the same Asset or right on the same market or on another the Exchange-managed market; f) stop order- specifying the price of an Asset or right which must be reached for the order to be executed; and g) matched order - one whose execution is connected to the execution of another order from the client, which may or may not include a price limit.

41 40 / 73 XII Buy and Sell Offers and Orders 05 12/16/ DEFINITION OF BID OR ASK OFFERS A bid or ask offer is the action through which a trader for a certain Brokerage Firm registers its intention to buy or sell Assets or rights attached to them under the conditions specified by the client TYPES OF OFFERS Types of Offers accepted for registration or trading on the Exchange trading systems are as follows: a) Limit Offer bid or ask offer to be executed only at the price specified by the client or a better one. In case of bid offers, this means that they may not be executed at a higher price than the limit. In case of ask offers, they may not be executed for less than the limit price. b) Opening Price Offer bid or ask offer to be executed at the opening price of an auction or Pre-Opening and Pre-Closing phases. c) Market offer - offer to be executed at the best limit of the offsetting price on the market when it is registered. d) Stop Offer - Trigger Price - based on a certain trigger price; at this price and above for a bid offer and at this price or below for an ask offer. A Stop limit offer becomes a limit offer as the trigger price is reached. e) Offer at Any Price - an offer to be fully executed regardless of the execution price (no limit price). This type of offer is only available for the continuous trading phase. f) Direct Offer - simultaneous registration of two crossed offers registered by the same brokerage firm ORDER RECORDING SYSTEM Instead of registering orders, the Exchange-Brokerage Firms may use a recording system to capture all the communications between clients and their trading desks The order recording system referred to in item must allow clear reproduction of the communications between clients or their agents and the Brokerage Firm and shall also provide

42 41 / 73 XII Buy and Sell Offers and Orders 05 12/16/2008 a) The date and start time of each calls recording from clients; b) Client identification and - if applicable - that of their agent and the Brokerage Firm's trader(s); c) The nature of the order - buy or sell, and type of order; d) The effective period of the order; e) Description of the Assets, quantities and prices, if applicable; f) Control over all recordings made every day, from the beginning to the end of the Exchange trading sessions If there is any suspension or pause in the recording system, then the Exchange - Brokerage Firms must comply with the provisions of 2 of Article 6 of the Securities Commission Rule CVM Brokerage Firms choosing to operate the recording system as described in must indicate this option in their Working Rules and Parameters All recordings made on the basis of this system must be kept at the Brokerage Firm's premises for five years as of the date of execution of the trades Brokerage Firms will grant clients with access to the communications recordings with the corresponding trading desk whenever it s intended to safeguard the rights or clarify any situation of their personal interest Brokerage Firms will make recordings available to the Exchange inspection and auditing services and may not deny the Exchange access to them or refuse to provide copies The Exchange may order Brokerage Firms to make a transcription of the tapes containing the communications between their trading desk and clients, or their trading desk and their floor traders.

43 42/ 73 XIII Trading Sessions 04 12/16/2008 CHAPTER XIII TRADING SESSIONS 13.1 TRADING TYPES Traders must show they're willing to execute trades using the following types of trading: a) Offer trading; b) Direct trading; or c) Auction trading The general principle governing Trading Sessions is that if there is any better buy or sell offer, no trade may be closed at a lower price (purchase) or higher price (sale) as long as the trader offering the best price has been firstly served The Exchange-managed markets must observe the trading criteria as determined in this Chapter OFFER TRADINGS Offer tradings take place whenever Traders interested in buying or selling show their intention of buying or selling Assets and must specify the Asset, lot and price Registered offer tradings will take priority for concluding a trade in relation to trades offered under any other way, except direct intentional offers and in spread, which take priority over offer tradings at the same price If there are several offer tradings for the same Asset at the same price, the Trader involved will be forced to conclude trades on the basis of the chronological order of the registration of the offer Offer tradings will be displayed once registered and may then be concluded Traders entering offers into the Electronic Trading System may specify their effective period in compliance with the Exchange rules Offers entered into the Electronic Trading System will be displayed in order of the best prices. Offers at the same prices shall be displayed in chronological order Offers involving odd lots will be processed separately and will not intervene in the trades executed in round lots and their whole multiples.

44 43/ 73 XIII Trading Sessions 04 12/16/ Traders may cancel or modify offers or offer balances entered into the Electronic Trading System Registered offers may not be canceled whenever involved in an auction DIRECT TRADING Direct trading is the one in which the same Brokerage Firm intends to buy and sell the same Asset for different investors To execute any direct trading, the Trader must register the direct trading order or registers buy and sell offers for the same Asset. If the direct trading meets any of parameters determined for direct trade auctions, the Exchange will announce the Asset, lot and price and will only proceed to close the trading after the period determined in the Operational Procedure Manual has expired If there is any intervention by a Trader from another Brokerage Firm seeking to sell cheaper or buy for a higher price, the proponent of the direct trading may set a new price and repeat this successively until the trade is closed The Trading Official may at his sole discretion submit any direct trading to regular auction AUCTION TRADING Auction trading refers to an offer given priority over others and which must mention the Asset, lot and price Auction tradings may be carried out in two ways: regular or special auction A 30-minute period will be allowed as of the auction closing for registration of the Forward Operation based on the Assets purchased in the auction REGULAR AUCTION TRADING Whenever sellers or purchasers may intervene while observing the intervention criteria determined in the Operational Procedure Manual Traders may hold regular auction tradings as long as they have the permission of the Exchange s Trading Official and of the traders who are buying or selling the assets Assets may be put up for regular auction trading on the basis of the provisions in the Securities Commission rules or the Operational Procedure Manual.

45 44/ 73 XIII Trading Sessions 04 12/16/ Whenever a trade is put up for regular auction trading upon the decision of the Chief Operating Officer or the Trading Official, buying and selling Traders will be notified of that previously Regular auction tradings may be executed even without the consent by buying and selling Traders During regular auction tradings in an Open Outcry Session, tradings of the Asset in question in the Electronic Trading system will be suspended SPECIAL AUCTION TRADING Special auction trading is that executed with priority over others and only buying Traders may intervene observing the intervention criteria determined in the Operational Procedure Manual Whenever holding special auction tradings, the following operational rules set by the Exchange must be observed for each auction FORWARD MARKET TRADING Forward market sessions, in addition to the criteria provided in this Chapter, must comply with the following rules: a) Traders must announce their wish to buy or sell and also mention the type of forward operation, the underlying Asset, quantity, price, type of contract and expiration; b) In relation to index points forwards, the value of the trade as determined by selling and buying Brokerage Firms will be converted into points by the Exchange after the closing of Session; and c) Assets may be traded by spread (financing) in the manner determined in the Operational Procedure Manual OPTIONS MARKET TRADING On the options market, in addition to the criteria determined in this chapter, the following rules must be complied with: a) Traders must announce their wish to buy or sell options and also mention the quantity, series and premium; b) Spread tradings will be allowed in the manner determined in the Operational Procedure Manual.

46 45/ 73 XIII Trading Sessions 04 12/16/ STOCK FUTURES MARKET TRADINGS On the stock futures market, in addition to the criteria determined in this chapter, the following rules must be observed: a) Traders must announce their wish to buy or sell on a futures basis and also mention the quantity of Assets, expiration and price; b) Spread tradings will be allowed in the manner determined in the Operational Procedure Manual.

47 46 / 73 XIV Trading Intervention 03 12/16/2008 CHAPTER XIV TRADING INTERVENTION 14.1 CASH MARKET INTERVENTION Trading intervention on the cash market will be carried out in round lots or their multiples in regular offer, direct tradings or Regular or Special Auction, and shall observe the intervention rules as stated in the Operational Procedure Manual Operations involving odd lots will not intervene in the operations executed in round lots and their multiples FORWARD MARKET INTERVENTION Forward trading intervention will only be done by the offering of the best buy or sell rate and all the other characteristics of the trade will remain unchanged OPTIONS MARKET INTERVENTION Options Market intervention will be carried out in round lots and their multiples except through spread trading, which will observe the intervention rules as stated in the Operational Procedure Manual STOCK FUTURES MARKET INTERVENTION Stock Futures Market intervention will be carried out in round lots and their multiples except through spread trading, which will observe the intervention rules as stated in the Operational Procedure Manual TRADES NOT SUBJECT TO INTERVENTION CRITERIA Sales of subscription rights are not subject to the intervention criteria as long as it is not possible to split the lot in order to meet the demand of the intervening Trader.

48 47 / 73 XV Day-Trade Operations 04 12/16/2008 CHAPTER XV DAY-TRADE OPERATIONS 15.1 DEFINITION Day-Trade Operations refer to the buying and selling trading of the same amount of Assets on the same day, through the same Brokerage Firm on behalf of the same investor on the cash, stock future and options markets settled through the same Clearing Agent SETTLEMENT Settlement of such operations will be made through financial offsetting. Any surplus or shortfall resulting from sales or purchases will cause the determined balance to be settled RESTRICTIONS The Exchange may restrict or suspend Day-Trade operations Day-Trade operations are disallowed on the options market, on expiration date for then-expiring series except if previously authorized by the Trading Official.

49 48 / 73 XVI Trade Corrections and Cancellations 04 12/16/2008 CHAPTER XVI TRADE CORRECTIONS AND CANCELLATIONS 16.1 OBLIGATION TO FULFILL TRADES CLOSED OR REGISTERED Once any trade has been closed or registered, Brokerage Firms must fulfill it and may not renounce unilaterally Corrections or cancellations of trades closed or registered during a Session will only be accepted under exceptional circumstances and the Brokerage Firms involved must produce the grounds for such a request TRADE CORRECTION OR CANCELLATION CRITERIA Any correction or cancellation shall be previously authorized by Trading Official as long as it involves no alteration in the opening, maximum, minimum or closing prices, or any substantial alteration in the quantity traded as observed until the time of receipt of the correction or cancellation request REQUEST FOR TRADE CORRECTION OR CANCELLATION Corrections or cancellations of trades shall be through written application to the Trading Official, within the deadline, and the Brokerage Firms involved shall produce the grounds for such a request GENERAL PROVISIONS The Exchange may ask the CBLC to suspend the clearing or cancel any trades made after the registration but before settlement if it thinks, at is sole discretion, that there has been a violation of the rules determined in these Regulations, Securities Commission rules, the Operational Procedure Manual or other rules issued by the Exchange.

50 49 / 73 XVII Trading Interruption 03 12/16/2008 CHAPTER XVII TRADING INTERRUPTION 17.1 INTERRUPTION OF THE ELECTRONIC TRADING SYSTEM OPERATION If there is any interruption in the Electronic Trading System operations, the following procedures shall be observed: a) the Exchange may suspend the trading if there is any interruption for technical reasons, totally or significantly, which affects several Brokerage Firms; and d) whenever the system is restored, the Exchange may at its sole discretion grant a pause before the trading is resumed, named Pre-Opening, so that brokerage firms may cancel or modify offers registered prior to the interruption TRADE CORRECTION OR CANCELLATION DUE TO PROCESSING SYSTEM FAILURES In the event of any failures in the processing of trade registrations during a Session, which is evidenced to be attributable to the Exchange, the trade may be canceled or corrected, even after the Session closing, regardless of any consent from the counterparts involved in the trade The Trading Official will give the Brokerage Firms involved immediate written notification of cancellations or corrections Brokerage Firms' appealing against the Trading Official s decisions to cancel or correct a trade must submit a written application to the Chief Operating Officer CIRCUIT BREAKER CIRCUIT BREAKER is a means to curb Exchange Index fluctuations by pausing the trading on the Exchange in line with the rules set forth in the Operational Procedure Manual.

51 50 / 73 XVIII Trading Suspension 04 09/30/2013 CHAPTER XVIII TRADING SUSPENSION 18.1 ATTRIBUTIONS In line with the provisions in this Chapter and to safeguard shareholder s and investor s interests, the Chief Executive Officer may suspend tradings of Assets quoted on the Exchange GENERAL SUSPENSION Asset tradings may be suspended in the following events: a) The issuer has entered into arrangement with creditors; or b) The Exchange identifies: i intervention, extra judicial liquidation or special temporary administration has been ordered in relation to the issuer; ii the issuer has filed for bankruptcy, which signals insolvency; iii the issuer has been declared bankrupt; or iv Resolutions set by the court ruling or Securities Commission Asset tradings may be suspended in the following events: a) The issuer fails to: i provide the public and the Exchange with timely details required for the proper evaluation of its price by the market and/or the means of trading the Assets issued by it; or ii notify the Exchange in due time of the decisions made by the general meeting or board or management meetings; b) There is information or news that is vague, incomplete, imprecise or of doubtful contents or origin, which may produce impacts on the quotation of any Asset or on an investor's decision to buy, sell, or keep such Assets; or c) The Exchange regards the information disclosed by the issuer as imprecise or incomplete At its sole discretion, the Exchange may accept or reject an issuer's request to suspend the trading in its Assets Trading suspension may cover one or more types, classes or series of a certain Asset.

52 51 / 73 XVIII Trading Suspension 04 09/30/ TRADING SUSPENSION IN BRAZILIAN DEPOSITARY RECEIPTS (BDRs) Tradings of BDRs may be suspended if the depository institution or a legal representative of the issuing company in Brazil fails to provide the Exchange with the information given to the market by the sponsor company in its country of origin at the same time as the original announcement The Exchange may also suspend tradings of a given Asset if the trading in its country of origin is suspended Other provisions in this Chapter also apply to the suspension of BDR tradings SUSPENSION NOTIFICATION Whenever a suspension is determined, the Exchange will inform the issuer and request clarifications of the facts that prompted the suspension The Exchange will notify the Securities Commission and the market of its trading suspension and the reasons for doing so SUSPENSION PERIOD The suspensions provided in this Chapter may be maintained for at most 30 days, but may be extended at the Exchange's sole discretion if there is any reason for doing so TRADING REOPENING The Exchange will determine the day and time for reopening tradings of suspended Assets by using the following procedures: a) announcement to the market about the reopening of the tradings of previously suspended Assets and information and clarifications provided by their issuers; b) the Exchange may determine the reopening of the tradings of previously suspended Assets even if the issuer has not provided any information and clarification as requested by the Exchange, and this will be announced to the market. In such cases, the Exchange may determine that quotations of the Assets involved be listed separately on its Daily Information Bulletin; and c) the Exchange may determine that the reopening of the tradings be carried out through a regular auction for a period set by the Trading Official.

53 52 / 73 XIX Orders Executed by Court Ruling 03 12/16/2008 CHAPTER XIX ORDERS EXECUTED BY COURT RULING 19.1 CRITERIA FOR EXECUTING AN ORDER The Exchange Member Firms will execute Asset buy or sell orders whenever they re ordered to do so by a Court Ruling or authorization NOTIFICATIONS Clients may choose the Brokerage Firms of their own preference that should notify the Exchange of their designation If any client fails to designate a Brokerage Firm, the Exchange may forward a list of Brokerage Firms to the Court for it to decide which firm will execute the order The Exchange will notify the Court issuing the ruling and the Brokerage Firm involved of such a designation GENERAL PROVISIONS The Brokerage Firm in question must obtain documentation from the Court with the data required to execute the order If the Assets are traded on the Exchange, or authorized to be traded on the Exchange, the Brokerage Firm must make the trade by auction If the Assets are traded on the Exchange, the trade will be executed by special auction Trades executed by Court s ruling or authorization will be subject to brokerage commission, charges and trading fees Once the trade has been settled, the Brokerage Firm must report to the Court ordering the trade and inform the Exchange of its compliance with the Court's Ruling.

54 53 / 73 XX Selected Stock Portfolios 03 12/16/2008 CHAPTER XX SELECTED SHARE PORTFOLIOS 20.1 GENERAL FEATURES Tradings of Selected Share Portfolios, represented by Receipts ( Receipts ), is allowed Receipts representing Selected Share Portfolios shall be registered and issued in book-entry form by the CBLC Shares comprising a Selected Share Portfolio must be under the custody of the CBLC Each receipt represents a portion of a certain Selected Share Portfolio The Exchange will make daily announcements of the composition of all the Selected Share Portfolios 20.2 DEFINITIONS The expressions below are used with the following meanings: a) Receipt - Receipt issued by the CBLC against deposit of shares, in the bookentry format, representing a portion of a Selected Share Portfolio in custodial deposit with the CBLC; b) Receipt Class - Receipt representing the same basket of shares, including the issuing company, type, class, rights status and quantity of shares; c) Reference Basis - For each Receipt Class, refers to the basket of shares and the quantities used as reference in specifying the quantity of Receipts; d) Receipt Issuance - Issuance by the CBLC of a certain Receipt, after the holder has made the custodial deposit of the shares corresponding to the Selected Share Portfolio; and e) Collateral - Means the shares deposited in a custodial account with the CBLC and used to issue a Receipt COMPOSITION OF THE SELECTED SHARE PORTFOLIO A Selected Share Portfolio may be constituted by interested institutions or investors in accordance with the rules set by the Exchange for such purpose.

55 54 / 73 XX Selected Stock Portfolios 03 12/16/ To take part in an existing Selected Share Portfolio, interested institutions and investors need only to acquire the stocks and their quantities in the same proportion as the Portfolio RECEIPTS ISSUANCE Receipts will be issued by the CBLC after the stocks comprising the Selected Share Portfolio are deposited in the custodial account as per the minimum Reference Basis required for the Receipt issuance Those interested in constituting Selected Portfolios must apply to the CBLC for the issuance and registration of Receipts RECEIPT REDEMPTION To redeem their Receipts, investors shall apply to the CBLC to place the stocks corresponding to the certificates redeemed in a custodial account indicated by the applicant EARNINGS FROM SHARES COMPRISING A SELECTED SHARE PORTFOLIO At the dividend distribution, interest on own capital, cash bonuses or any other benefits in cash will not be included in the Selected Share Portfolio. Such benefits will be received by the CBLC and credited to the accounts of the Receipt holders in accordance with the conditions set by the CBLC, based on the number of stocks comprising the Receipt At the distribution of stock bonuses or other earnings as bonds or securities, such new stocks, bonds or securities will be incorporated into the respective Backed Receipts, on the date determined by the CBLC. Special cases such as spin-offs, mergers, incorporations or other types of benefits as securities not amenable to the above procedure will be dealt with appropriately; In the event of capital increase through subscription; neither the corresponding subscription right nor the stocks resulting from the exercise of said right will be included in the respective Backed Receipts. The corresponding Subscription Rights will be credited to the Receipt holder s custodial account in the proportion to the company's stocks in the Receipt Class, and holders may decide whether to exercise their preemptive rights or not SUSPENSION OF TRADINGS INVOLVING STOCKS OF THE SELECTED SHARE PORTFOLIO In the event of cash market trading in one or more of the stocks comprising the Selected Share Portfolio being suspended, the Receipt trading may or may not be suspended depending on the proportion of the stock or stocks in the Portfolio.

56 55 / 73 XX Selected Stock Portfolios 03 12/16/ The Exchange will determine the proportions that will trigger suspension of Receipt tradings In the event of suspension of trading of one or more of the stocks comprising the Portfolio, the Exchange may at its sole discretion determine the trading suspension in the portfolio and one of the following measures: a) Wait until the trading of the suspended stocks is resumed; b) Redeem Receipts; or c) Remove suspended stock from the Receipt's Reference Basis RULES APPLICABLE TO RECEIPT TRADING All Receipt trading on the Exchange-managed markets will take place in the manner provided in these Regulations Receipts may be traded on the Exchange only after the corresponding Selected Share Portfolio has been constituted with the CBLC All the Selected Share Portfolios will comprise the quantity of the stocks previously authorized by the Exchange, which will also determine round lots and quote formats for the respective Receipts.

57 56 / 73 XXI Operational Limits 03 12/16/2008 CHAPTER XXI OPERATIONAL LIMITS 21.1 OPERATIONAL LIMITS FOR BROKERAGE FIRMS The CBLC will set operational limits for all the Clearing Agents Clearing Agents must allocate all or a part of operational limits received from the CBLC to the Brokerage Firms for whom they provide trading settlement and clearance services The allocation of the operational limits referred to in the previous paragraph must be made by Clearing Agents on the basis of their own assessments and the contractual conditions they have agreed upon with the Brokerage Firms for whom they provide trading settlement and clearance services Clearing Agents must inform the CBLC of the distribution of the corresponding operational limits The CBLC will immediately forward the information referred to in the previous paragraph to the Board of Operations of the Exchange Clearing Agents are responsible for settling the trades made by the corresponding Brokerage Firms for whom they provide trading settlement and clearance services and must comply with the trading limit attributed to them The Exchange shall notify the CBLC of any trading in excess of the limits attributed to Brokerage Firms by the corresponding Clearing Agents NON-COMPLIANCE WITH OPERATIONAL LIMITS Upon request from the CBLC, and in cases of recurrent unauthorized tradings in excess of the limits, the Exchange may restrict the trading by any Brokerage Firm until the conditions are met.

58 57 / 73 XXII Rights and Obligations of Brokerage Firms 05 12/16/2008 CHAPTER XXII - RIGHTS AND OBLIGATIONS OF BROKERAGE FIRMS 22.1 DESIGNATION OF OPERATIONAL OFFICERS Brokerage Firms must designate an officer responsible for the trades executed on the Exchange-managed markets The Exchange Audit must be immediately and formally notified of any officer replacement INFORMATION, RECORDS AND DOCUMENTS REFERRING TO THE TRADES EXECUTED BY BROKERAGE FIRMS Brokerage Firms must keep all the information, records and documents referring to the trades executed by them on the Exchange-managed markets at the disposition of the Exchange and BSM The Exchange and BSM must be granted with access to all and any written or electronically stored information on the trades executed by Brokerage Firms and their clients and may request clarifications verbally or in written form, check books, documents, archives, files and anything else required for full and proper compliance with the rules enforced by the Exchange Anything obstructing or hindering the Exchange inspectors from obtaining all and any information on the trades executed by Brokerage Firms constitutes a serious violation RULES OF CONDUCT In the course of their business, Brokerage Firms authorized to trade at the Exchange must observe the Rules of Conduct appropriate to and required for the proper performance of their basic fiduciary role regarding advisory and intermediaries services for their clients GENERAL RULES OF CONDUCT: 1) Show integrity and constantly maintain technical and financial capabilities in the course of their activities as brokers and dealers of bonds and securities; 2) Act in the best interests of their clients; 3) Seek to uphold the integrity of the market;

59 58 / 73 XXII Rights and Obligations of Brokerage Firms 05 12/16/2008 4) Uphold high ethical standards in trading and conduct, as regards: a) Their clients; b) Other brokers, financial and other institutions and service providers; c) Official authorities in the sector and particularly the Securities and Exchange Commission (CVM) and the Central Bank of Brazil (BACEN); d) the Exchange; and e) Issuers of bonds and securities. 5) Not contribute toward: a) Transmitting or circulating groundless or inaccurate news or information in relation to the market; b) Creating artificial conditions of supply or demand in the market; c) Non-equitable practices; and d) Execution of fraudulent trades. 6) Not executing trades that pose a risk of the firm being unable to arrange settlement physically or financially; 7) Cause their directors, employees, traders, representatives and self-employed agents associated with them to faithfully comply with the legal and regulatory provisions and particularly those applicable to: a) Trades executed on the exchange; b) Settlement of trades with CBLCs or other such organizations; and c) Custody of bonds and securities. 8) Cause their directors, employees, traders, representatives and self-employed agents to maintain appropriate personal decorum and constantly observe: a) Standards of ethics and conduct appropriate to the activities performed; b) Unblemished reputation;

60 59 / 73 XXII Rights and Obligations of Brokerage Firms 05 12/16/2008 c) Moral rectitude; d) Technical capability; and e) Specialization required to exercise their roles. 9) Notify the Chief Executive Officer of any price manipulation; creation of artificial conditions of supply, demand or pricing in the market; non-equitable practices; or fraudulent trading that they may become aware of. 10) Not hire or employ, in the course of their activities as intermediaries or brokers, any persons or corporations that are not members of the securities distribution system or do not possess the proper certification or authorization issued by a regulatory agency RULES OF CONDUCT IN RELATION TO CLIENTS 1) Select clients properly, obtaining and maintaining properly updated data and files required for proper knowledge and its appraisal; 2) Provide their clients with all the information and documents required under the rules set forth by the Securities Commission and the Exchange, or other related provisions, as well as the Rules and Parameters determined therein; 3) Inform clients of the characteristics of bond and securities markets and particularly the risks involved in variable income trades; 4) Take measures to avoid executing trades in a situation involving conflict of interest and, in any event, ensure fair and equitable treatment for clients in accordance with the Rules and Parameters for these activities; 5) Arrange for all documentation for their trades to be forwarded to clients within the proper period; 6) Keep the confidentiality of the trades executed by clients or the services provided to them; 7) Implement internal controls and keep records and documents in order to ensure that clients' orders are faithfully executed and to allow periodic reconciliation in relation to: a) The registration, effective term, procedure for refusal, priority, execution, distribution and cancellation of orders received from clients; b) Amounts received or paid by clients;

61 60 / 73 XXII Rights and Obligations of Brokerage Firms 05 12/16/2008 c) Any collaterals requested or deposited; d) Custodial account positions as stated in the statements and transaction records supplied by the custodial service providing organization; and e) Derivatives contracts they are in charge of Rules and Parameters determined by the Exchange Member Brokerage Firms shall clearly and concisely provide their methods of work, including in relation to the recording of telephone conversations, if applicable The provisions in this item 23.3 are also applicable, where appropriate, to other participants acting directly on the Exchange-managed markets BROKERAGE FIRMS ACTING AS CLEARING AGENTS Brokerage Firms when acting as Clearing Agents for others shall comply with the CBLC Regulations and particularly look to the integrity and financial capacity of those for whom they settle trades and at their sole discretion may ask the party concerned for any information, documents or collaterals they think necessary REQUIREMENTS FOR THE REPRESENTATIVES OF BROKERAGE FIRMS Officers, directors, employees, traders, representatives and self-employed agents of Brokerage Firms shall hold unblemished reputation, moral rectitude, technical ability and specialized knowledge required to carry out their work Officers, directors, employees, representatives and Traders of Brokerage Firms must maintain full personal decorum and continually observe the standards of ethics and behavior appropriate to their business activities RIGHTS OF THE BROKERAGE FIRMS IN RELATION TO THEIR CLIENTS Brokerage Firms may require their clients to make timely deposits in cash or Assets in order to conduct trades Brokerage Firms must oversee their clients trades and strive for compliance with the capital market legislation and regulations; they must inform the Exchange of any violations they become aware of or should do so in the course of their activities At its sole discretion, a Brokerage Firm may refuse to accept orders to buy or sell Assets A Brokerage Firm may sell on the Exchange, regardless of any notice issued by courts or others, the Assets acquired on behalf of its clients if the trade has not been

62 61 / 73 XXII Rights and Obligations of Brokerage Firms 05 12/16/2008 settled, or sell or settle other Assets it is holding to use the proceeds from the sale to pay off the corresponding debit OBLIGATIONS OF BROKERAGE FIRMS The Exchange requires Brokerage Firms, their officers, Traders, employees, and representatives to comply with the pertinent legislation and the Exchange rules, and may take appropriate measures or sanctions applicable in each case in the event of noncompliance with these regulations and the Operational Procedure Manual Brokerage Firms, their officers, employees, agents and representatives, as well as Traders must promptly obey all the Exchange decisions Brokerage Firms and their corresponding Clearing Agents are responsible for the regular introduction of their clients' Assets and their circulation on the market, and will be liable for any expired, annulled, adulterated or falsified ones RIGHTS OF BROKERAGE FIRMS ON FORWARD MARKETS Brokerage Firms have the following rights: a) may, at their sole discretion, in order to provide greater security to trades, any time, require investors to provide additional collaterals in any amount, specification or term, even in excess of the requirements set by their Clearing Agent; b) set other conditions seeking to limit excessive risks for their investors caused by sharp fluctuations in quotations and exceptional or abnormal market conditions; c) set higher trading limits for an investor than those set by their Clearing Agent; and d) may, any time, if investors fail to perform their obligations, proceed to the settlement of their trades, using the collaterals deposited to cover any losses sustained, and to pay commissions, fees and other financial charges involved Brokerage Firms must run systems to control and register forward trades enabling them to provide separate monitoring for each investor in the course of trades and the corresponding earnings.

63 62 / 73 XXII Rights and Obligations of Brokerage Firms 05 12/16/ RIGHTS OF THE EXCHANGE ON FORWARD MARKETS In the interests of the market, the Exchange may: a) Bar Brokerage Firms and/or their investors or group of investors from trading on the futures markets for a certain period if there is any risk of their not being able to settle their trades; b) Suspend tradings on futures markets; c) Suspend or cancel options exercises of no intrinsic value when there is any significant gap between strike price and the cash price of the underlying Asset; and d) Extend the deadline for exercising an option, or delay the closing of a Session, whenever it thinks the market behavior requires such a measure.

64 63 / 73 XXIII Applicable Sanctions Due to Violations of These Regulations 04 12/16/2008 CHAPTER XXIII APPLICABLE SANCTIONS DUE TO VIOLATIONS OF THESE REGULATIONS 23.1 FINES The Exchange may fine Brokerage Firms for violations of these Regulations or other procedures and rules it determines The Chief Executive Officer has the prerogative of tabulating fines to be levied on violators. This tabulation will be included in the Operational Procedure Manual The amount of the fine will be debited through the Clearing Agent of the violating Brokerage Firm The Exchange may be remitted on formal application from the violators. An indispensable condition for the acceptance of such an application is that the violator must not have been penalized for the same failure within the previous 60 days Fines may be levied regardless of delay in constituting delinquent Brokerage Firms, under the Exchange By-Laws, for the purposes of Auction of Membership INFRACTIONS AND VIOLATIONS Infractions include violations of any of the provisions of these Regulations, and particularly: a) Executing any type of trade not in accordance with the regulatory provisions; b) Executing orders of unregistered clients; c) Blocking options positions with no corresponding purchase on behalf of the client; and d) Open new positions in a series falling due on the expiration date; The above cases are merely illustrative and the Chief Executive Officer may determine further cases of situations in which infringements of these Regulations to the Operational Procedure Manual and other rules may lead to fines GENERAL PROVISIONS All the financial charges arising from the measures determined in this Chapter will be borne by the violating Brokerage Firm, which may seek compensation from the investor causing the infringement if appropriate Penalties will be levied by the Exchange Chief Executive Officer. Against a decision ratifying the imposition of a penalty, an appeal with supersedeas may be filed with BSM within 5 days as of the date of notification of the decision being appealed against.

65 64 / 73 XXIV Appeals Against Penalties Imposed by the Exchange 03 12/16/2008 CHAPTER XXIV APPEALS AGAINST PENALTIES IMPOSED BY THE EXCHANGE 24.1 APPEALS Decisions made by the Trading Official may be appealed against to the Chief Operating Officer Decisions made by the Chief Operating Officer may be appealed against to the Chief Executive Officer Decisions made by the Chief Executive Officer may be appealed against to the Board of Directors Decisions made by BSM may be appealed against, when this is specified in the regulations, to the Securities and Exchange Commission (CVM) APPEAL WITH SUPERSEDEAS Appeals against the decisions made by the Trading Official, the Chief Operating Officer, the Chief Executive Officer or BSM will be accepted with or without supersedeas, as follows: a) Verbal or written warning - without supersedeas; b) Suspension with supersedeas; and c) Fines with supersedeas DEADLINES FOR FILING APPEALS The last date for filing an appeal, except any provision otherwise, will be 5 calendar days. This period is counted as a day following the notification of the decision and ends on the last day, but may be extended until the first subsequent business day if there is no the Exchange session on that day ACCESS TO APPEAL RECORDS AND ADDITIONAL MEASURES Only the parties or their attorneys will have access to appeal records The Chief Executive Officer may determine measures considered appropriate to the appeals filed.

66 65/ 73 XXV Client File 08 12/16/2008 CHAPTER XXV CLIENT FILE 25.1 RECORD FILE Brokerage Firms must maintain updated client data containing the details, statements and documents described in the templates used by the Exchange. Template I Individual Client Record File; Template II Corporate Client Record File; Template V Non-Resident Client Record File Clients must provide brokers with details on their financial and Asset status. a) For individual clients, these details must be provided using the Form "Investor Financial and Asset Status" (Template III); b) For corporate clients, these details must be provided using the current company financial statements Members of one or more Investment Clubs whose consolidated balance of investments with one single the Exchange Member Brokerage Firm, or with one manager, amount to less than ten thousand Brazilian reais (BRL 10,000.00) may use the simplified form containing details as in Template IV In case of Non-Resident Client files, Brokerage Firms may keep record files according to the Template V Non-Resident Client File, subject to the execution of a written and specific agreement by and between the Brokerage Firm and the Foreign Intermediary, which shall provide at least the following clauses: Obligations of the Foreign Intermediary: a) Make the agreement and its parties conform to the laws of the Federative Republic of Brazil, as well as its respective bodies and agencies; b) Make their clients aware of the Brazilian laws related to the stock market by providing them with copies of their contents or report where such laws can be accessed; c) Report to their clients that the operations they conduct in Brazil are subject to the Brazilian capital market laws; d) Submit any disputes or litigations resulting from the agreement execution to the Brazilian Judiciary Power or the Market Arbitration Panel; e) Appoint an attorney-in-fact in Brazil to receive summons, subpoenas and notices, whether of a judicial nature and/or otherwise, issued by the Brazilian Judiciary Power, administrative authorities and self-regulating entities concerning the subject-matter of the respective agreement;

67 66/ 73 XXV Client File 08 12/16/2008 f) According to the terms set forth by the Brazilian laws, keep all the data and documents updated to allow the identification of Non-Resident Investors, as well as provide them to Brokerage Firms whenever requested and required to the performance of the institutional purposes and the requirements by regulatory agencies and self-regulating entities within the terms set forth by them, pursuant to their respective competence levels; g) Provide Brokerage Firms with any information that may be required in order to meet the requirements of the Central Bank of Brazil, the Securities and Exchange Commission, Federal Internal Revenue Service and other public bodies and selfregulating entities, pursuant to the laws and the limits of their respective competences, and within the terms set forth by them; h) Identify and know their clients in order to prevent any activities related to money laundering; and i) Identify and report any changes in the individual/area in charge of keeping their clients information A clause setting forth the obligation by Brokerage Firms to provide the Foreign Intermediary with the bylaws, laws, codes, regulations, norms and requirements by governmental authorities, regulatory agencies and self-regulating entities concerning their performance on the Brazilian capital market; A clause setting forth the agreement termination in case any of the obligations provided therein are not performed, especially those related to the compliance with the rules for Nonresident Clients to conduct operations in the Brazilian financial and capital markets; The minimum clauses provided in the items to are in the Template VI - Agreement between Foreign Intermediaries and Brokerage Firms to Identify and Know Non-Resident Investors Brokerage Firms shall: a) Report to the Exchange, by means of letter, delivery receipt requested, on: (i) All the contractual relations with Foreign Intermediaries at least five business days prior to the beginning of the effective term of the respective agreements. (ii) The termination of each agreement executed with Foreign Intermediaries at least 5 business days prior to the effective termination, except in case of automatic termination resulting from any contractual breach, and, in such case, the Exchange shall be informed about such termination date; and b) Appropriately keep all the agreements executed with foreign intermediaries in file and provide them to the Exchange and other regulatory agencies whenever requested

68 67/ 73 XXV Client File 08 12/16/ In case there s any violation of the provisions in item and its sub items, Brokerage Firms may not execute the orders transmitted by Non-Resident Clients, except the full record file template has been adopted (Template I or Template II) In case any regulatory agency reports to the Exchange any Foreign Intermediaries have not performed, without any justification provided, their obligations concerning information provision, pursuant to the item , "f" and "g", the Exchange shall then report such fact to Brokerage Firms Brokerage Firms may not execute the orders transmitted by Foreign Intermediaries which the notice mentioned in the item refers to. In such case, Brokerage Firms shall report the respective Foreign Intermediaries that they will be allowed to operate only on account and behalf of their respective Non-Resident Clients upon the full Record File Template (Template I or Template II) The agreement executed between Brokerage Firms and Foreign Intermediaries which the notice mentioned in item refers to shall be regarded as automatically terminated and shall not produce any effects on the Exchange The Exchange may audit, from time to time and whenever required, the information provided by Brokerage Firms concerning the agreement executed with the Foreign Intermediaries SECURITIES TRADING NOTICE (ANA) The Exchange will periodically provide to registered investors, by mail and/or electronically, the securities trading notice containing the trades executed on their behalf The Chief Executive Officer may periodically set a fee for issuing securities trading notices to investors and the Brokerage Firms representing them, which will be responsible for collecting such fee and forwarding it to the Exchange.

69 68 / 73 XXVI Persons Associated with Brokerage Firms 03 12/16/2008 CHAPTER XXVI PERSONS ASSOCIATED WITH BROKERAGE FIRMS 26.1 Persons associated with Brokerage Firms include their own portfolio, the individuals directly or indirectly controlling the firm, its members, shareholders or officers characterized as individuals, independent agents accredited by the Brokerage Firm, Traders, representatives and employees related to the trades executed, as well as their spouses or partners and children of minor age Associated persons include group accounts, including investment clubs, whenever the majority of the shares belongs to any of the persons mentioned in the main paragraph of this article Persons associated may trade in bonds or securities only through the Brokerage Firm which they are associated with.

70 69 / 73 XXVII Brokerage Commission, Fees and Trading Fees 03 12/16/2008 CHAPTER XXVII BROKERAGE COMMISSION, FEES AND TRADING FEES 27.1 BROKERAGE COMMISSION Brokerage commission for the trades registered with the Exchange shall be freely agreed upon between Brokerage Firms and their clients FEES AND TRADING FEES The Exchange-managed markets will involve fees and trading fees as shown on the List of Contributions and Services, periodically disclosed by the Chief Executive Officer Fees and trading fees are charged: a) On the Cash Market: on the purchase or sale amount; b) On the Forward Market: on the amount of the trade agreed; c) On the Options Market: at the trading, on the amount of the premium and on the strike price when the option is exercised; and d) On the Stock Futures market: on the amount equivalent to the quantity of contracts multiplied by the previous day's settlement price GENERAL PROVISIONS Buying and selling Brokerage Firms shall pay the Exchange the fees and trading fees due on the trades executed, to be debited through their Clearing Agents Brokerage commissions, fees and trading fees applicable to operations shall be paid by both buying and selling investors The Exchange may introduce new fees or charges or change the existing ones at any time.

71 70/ 73 XXVIII Daily Information Bulletin (BDI) 03 12/16/2008 CHAPTER XXVIII DAILY INFORMATION BULLETIN (BDI) 29.1 The Exchange will publish a Daily Information Bulletin on hard and/or electronic format containing the trades executed on the markets managed by the Exchange for the use by Brokerage Firms and may be accessed by other interested parties In this bulletin, the Exchange will provide the trades and outstanding positions on the futures markets and the options exercised The bulletin will also contain the Exchange rules and regulations and a summary of the information provided by listed companies, in addition to any other information the Exchange thinks fit.

72 71 / 73 XXIX Emergency Operational Measures 03 12/16/2008 CHAPTER XXIX EMERGENCY OPERATIONAL MEASURES So as to ensure effective and regular operations of the market, the Exchange may, whenever necessary, take Emergency Operational Measures for the markets and/or services it manages EMERGENCY SITUATIONS 29.2 DUTIES Emergency Operational Measures may be taken in the following events: a) whenever a state of defense, state of siege or catastrophe is decreed; b) war or serious domestic disturbances; or c) events of any other nature, including those arising from acts of God or force majeure, that may affect or jeopardize the regular operations of the markets, services and settlement of trades The Chief Executive Officer shall: a) determine if a situation, event or fact requires Emergency Operational Measures to be taken; or b) call a meeting of the General Meeting or the Executive Board to set the Emergency Operational Measures to be taken in a certain situation If a meeting of the General Meeting or the Executive Board cannot be called and an emergency set event requires so, the Chief Executive Officer may take the Emergency Operational Measures as s/he thinks fit to be submitted to the Board's approval how and when possible EMERGENCY MEASURES The following Emergency Operational Measures may be taken: a) Declare the Exchange recess; b) Suspend any business conducted by Brokerage Firms, trading of securities or the operations of any market or service; c) Cancel trades executed;

73 72 / 73 XXIX Emergency Operational Measures 03 12/16/2008 d) Change the rules related to the markets or any service provision; or e) Modify expiration dates The introduction of an Emergency Operational Measure will not exempt or exonerate Brokerage Firms and investors from their duty to fulfill any obligation assumed, in particular: a) That of Brokerage Firms to the corresponding Clearing Agents in relation to the responsibility for the settlement of the trades executed on the Exchange; and b) That of investors to the corresponding Brokerage Firms in relation to the responsibility for the settlement of the trades they have ordered.

74 Page/Sheet OPERATIONAL REGULATIONS OF BOVESPA SEGMENT 73 / 73 XXX Supplementary Rules 03 12/16/2008 CHAPTER XXX SUPPLEMENTARY RULES 31.1 The Chief Executive Officer may issue rules supplementing these regulations or take the measures required for their full and proper enforcement The rules issued by the Exchange will be effective immediately as of the signature or the date setout therein, and may produce retroactive effect on the registered trades yet to be settled The capital market laws and accepted habits and practices on the marketplace are subsidiarily applicable to these regulations.