Circular Letter – Changes to the Pricing Policy for ... - BM&FBovespa;

March 05, 2013
018/2013-DP
CIRCULAR LETTER
To: The BM&FBOVESPA (BVMF) Market Participants – BOVESPA
Segment
Re: Changes to the Pricing Policy for Products on the Cash Equity
Market.
Continuing the process of enhancements to its Pricing Policy, over 2013
BM&FBOVESPA will make a series of adjustments to the pricing policy for
products on the BOVESPA segment’s cash equity market, seeking to
eliminate cross subsidies, encourage increased volumes and share economies
of scale.
The measures include:
i. Reduction of the trading fee for the cash equity market;
ii.
Extension, to all of the customers that execute day trading, of the
discounts policy by volume tier that is currently offered to High
Frequency Traders (HFTs); and
iii. Progressive reduction to trading fees by tiers of the Exchange’s overall
volume for the cash equity market, benefitting all investors.
In order to reach the objectives described above, BM&FBOVESPA shall
make changes to its Pricing Policy which, as they depend upon changes to the
trading and post-trade systems of the Exchange, Brokerage Houses and
technology system providers, shall be introduced in two phases:

018/2013-DP .2.
1 st Phase: Change to the pricing policy for products on the cash equity
market
BM&FBOVESPA will make the following changes to the cash equities
market fees, reflected in Annex I of this Circular Letter:
• change to the trading fee, for all customers and types of trading (regular,
day trading and option exercises) from 0.0070% to 0.0050% in the case
of cash transactions;
• change to the settlement fee for funds and investment clubs, from
0.0180% to 0.0200%, keeping the 0.0250% total cost unchanged (trading
and settlement);
• change to the settlement fee for (i) day trading and the exercise of call
and put equity options (writer) from 0.0180% to 0.0200%, not changing
the total cost (trading and settlement) of 0.0250%; and (ii) for the
exercise of index options (spread) from 0.0265% to 0.0275%; and
• rebalancing of the pricing table for high frequency traders (HFTs).
These changes will come into effect as of the trading session of the first
business day of April 2013 and the tables contained in Annex I only change
the cash equity fees described in Circular Letter 044/2011-DP of October 25,
2011.
It is important to note that with the implementation of the 2 nd Phase for
transactions executed during opening auctions, closing auctions and in Public
Tender Offers (PTO), the value of the trading fee will go back to 0.0070% as
long as (i) they are not executed by investment clubs (which continue to be
covered by the prevailing rule); and (ii) they are not characterized as day
trading.
2 nd Phase: Introduction of prices by volume tiers
Regressive method, exclusively for day trading
As of December 02, 2013 the volume tiers criterion shall come into effect for
trading pricing for cash market day trades, applicable to all customers. The
table for this can be found in Annex II to this Circular Letter.

018/2013-DP .3.
The calculation of the volume tier of each customer (i) shall occur at the end
of the allocation period and be applied to day trading transactions that are the
object of calculation of each trading session; (ii) shall only consider day
trading on the cash equity market by the same customer that trades by the
same brokerage house and same clearing agent; and (iii) shall not consider
trades executed through market maker accounts.
With the entrance into effect of the price table by volume tiers for day trading
in the 2 nd Phase, which will be applicable to all customers, the specific pricing
rules for High-Frequency Traders (HFTs) in the cash equity market described
in Circular Letter 028/2010-DP of August 02, 2010 shall be revoked.
Current high-frequency traders who opt for the regime of periodical
calculation of average volume of transactions will automatically migrate to
the daily calculation model as of the 2 nd Phase.
Progressive method for all customers
BM&FBOVESPA will implement a new mechanism as of the December 02,
2013 trading session, for defining the value of the trading fees charged on
trades executed in the cash equity market.
In the new system, the value of the trading fee owed by the customer will be
determined for each calendar month in accordance with the average daily
trading volume (ADTV) of the BM&FBOVESPA cash equity market,
calculated in the previous calendar month, observing the table and the
conditions set forth in Annex II to this Circular Letter.
Regular trades executed during the session (excluding trades executed in the
opening and closing auctions, as well as PTO transactions) shall be subject to
the trading fee calculated in accordance with this system.
The trading fee calculated via this system will also be applicable to the first
volume tier contained in the table of Annex II to this Circular Letter for day
trading.
The value of the trading fee that is owed shall be calculated progressively and,
for all of the customers that execute the above mentioned trades, will

018/2013-DP .4.
correspond to a weighted average of the reference trading fees by ADTV tier,
in accordance with the table in Annex III.
The example below illustrates the calculation of the trading fee, valid for a
particular month, considering the ADTV of BRL 14 billion calculated in the
month that immediately preceded it:
In this example we can see an economy of 37.75% for the customers in relation to the
trading fee of 0.0070% that is currently charged
The implementation details of the 2 nd Phase of the Pricing Policy shall be
announced to the market at an opportune moment.
Further information may be obtained from the Registration and Settlement
Department by telephone at (+55 11) 2565-4035.
Edemir Pinto
Chief Executive Officer
Marcelo Maziero
Chief Product and Customer Officer

018/2013-DP .5.
Annex I to Circular Letter 018/2013-DP
CASH EQUITY MARKET PRICING – BOVESPA SEGMENT
1- New table containing the trading fees and settlement fees that are
applicable to products on the cash equity market:
Funds and
Investment
Clubs
Other Investors
Day trading
(for all investors) (3)
Options Exercise
On
Securities
(Writer)
On Indices
(Spread)
Trading 0.0050% (1) 0.0050% (1)(2) 0.0050% 0.0050% (1) 0.0050% (1)
Settlement 0.0200% 0.0275% 0.0200% 0.0200% 0.0275%
Total 0.0250% 0.0325% 0.0250% 0.0250% 0.0325%
(1) After the implementation of the 2nd Phase, the trading fee will be subject to the reduction in accordance with
the price rules for volume tiers, as described in Annex III to this Circular Letter.
(2) After the implementation of the 2nd Phase for transactions executed during the opening or closing auctions or
in Public Tender Offers (PTO) the value of the trading fee will be 0.0070%, as long as the transactions are
not characterized as day trading.
(3) After the implementation of the 2nd Phase, day trading in the cash equity market will be subject to the
stipulations of the table in Annex II to this Circular Letter.

018/2013-DP .6.
2- New table for high-frequency traders (HFT), containing the trading
fees and settlement fees applicable to the products of the cash equity
market.
ADTV Tiers (BRL Million)
PHYSICAL LEGAL PERSON TRADING SETTLEMENT TOTAL
PERSON
Up to 4
(including)
To 20 (including) 0.0050% (1) 0.0200% 0.0250%
From 4 to 12.5 From 20 to 50
(including) (including)
0.0030% 0.0200% 0.0230%
From 12.5 to 25 From 50 to 250
(including) (including)
0.0005% 0.0195% 0.0200%
From 25 to 50 From 250 to 500
(including) (including)
0.0005% 0.0175% 0.0180%
Over 50 Over 500 0.0005% 0.0155% 0.0160%

018/2013-DP .7.
Annex II to Circular Letter 018/2013-DP
CASH EQUITY MARKET PRICING – BOVESPA SEGMENT
Volume tiers for day trading
Table containing the trading fees and settlement fees for the cash equity
market, applicable in regressive form to all of the customers that execute
day trading:
Day Trade Volume on the Cash Equity
Market (BRL million) Trading Settlement Total
Physical Person
Legal Person
To 4 (including) To 20 (including) 0.0050% (1) 0.0200% 0.0250%
From 4 to 12.5
(including)
From 12.5 to 25
(including)
From 25 to 50
(including)
From 20 to 50
(including)
From 50 to 250
(including)
From 250 to 500
(including)
0.0030% 0.0200% 0.0230%
0.0005% 0.0195% 0.0200%
0.0005% 0.0175% 0.0180%
Over 50 Over 500 0.0005% 0.0155% 0.0160%
(1) The trading fee in this tier is subject to a reduction in accordance with price rules by volume tier, as
described in Annex III to this Circular Letter.
Observation: the calculation of the volume tier of each customer: (i) will occur at the end of each allocation
period and be applied to the day trading that is the object of the calculation of each trading
session; (ii) will only consider day trading transactions on the cash equity market that is
consolidated per brokerage house; and (iii) will not consider the trades executed via market
maker accounts.

018/2013-DP .8.
Annex to III to Circular Letter 018/2013-DP
CASH EQUITY MARKET PRICING – BOVESPA SEGMENT
Reference prices by volume tier
Table containing the reference trading fee tiers for calculating the value
of the trading fees charged on the cash equity market based on the
average daily trading volume (ADTV) of the BM&FBOVESPA cash
equity market:
ADTV tiers of the cash equity market (1)
Reference trading fees
Up to BRL 9 billion (including) 0.0050%
From BRL 9 billion to BRL 11 billion (including) 0.0040%
From BRL 11 billion to BRL 13 billion (including) 0.0030%
Over BRL 13 billion 0.0020%
(1)
For the calculation of the daily volume used for calculation of the monthly ADTV, trades on the cash
equity market are considered, including the exercise of options on the securities that are traded on the
cash equity market.