CVM Instruction No. 122 of June 6, 1990

CVM INSTRUCTION NO. 122, OF JUNE 6, 1990.

Provides for the identification of ultimate clients in stock exchange operations and gives other provisions.

The COLLEGIATE BOARD OF THE SECURITIES AND EXCHANGE COMMISSION makes public that, in a session held on this date, in view of the provisions of Article 4, item III, and Article 18, item II, "a", of Law No. 6,385, of December 7, 1976, as well as CMN Resolution No. 1,657, of October 26, 1989,

RESOLVED:

Art. 1 The administrator of the Institution that is part of the distribution system, responsible for stock exchange operations, as well as the General Superintendent of the Stock Exchange, each within the scope of their competencies, must ensure that the following infractions do not occur:

I - the transmission of orders by correspondent brokerage firms, distributing companies, multiple banks, and investment banks to brokerage firms, for the execution of buy or sell operations of securities involving an ultimate client who does not have registration identification at the stock exchange (Art. 12, item V of the Regulation attached to CMN Resolution No. 1,120, of April 4, 1986, with the wording given by CMN Resolution No. 1,653, of October 26, 1989, Item I, letters "a" and "b" of CVM Instruction No. 107, of October 26, 1989);

II - the execution by brokerage firms of operations involving an ultimate client who does not have registration identification at the stock exchange (Art. 12, item V of the Regulation attached to CMN Resolution No. 1,655, of October 26, 1989);

III - the settlement of stock exchange operations, involving ultimate clients of institutions that are part of the distribution system, who do not appear in the stock exchange's registry (Art. 63 of the Regulation attached to CMN Resolution No. 1,656, of October 26, 1989).

Art. 2 The determination of the infractions described in the previous article shall be made through an administrative process of summary procedure, in accordance with the Regulation attached to CMN Resolution No. 1,657, of October 26, 1989, with those responsible subject to the application of a monetary fine, limited to the maximum value of 3,000 (three thousand) National Treasury Bonds.

Art. 3 The stock exchanges shall have a maximum period of 4 (four) months, counted from the date of publication of this Instruction, to interconnect their client registries, established in accordance with Article 63 of the Regulation attached to CMN Resolution No. 1,656, of October 26, 1989.

Sole Paragraph. Non-compliance with this deadline will subject the stock exchanges to a coercive fine in the amount of 69.20 (sixty-nine and twenty hundredths) National Treasury Bonds, per day of delay, applicable from the first business day following the end of the deadline, regardless of notice, without prejudice to the responsibility of the administrators, in accordance with Article 11 of Law No. 6,385, of December 7, 1976.

Art. 4 This Instruction enters into force on the date of its publication in the Official Gazette of the Union.

Original signed by ARY OSWALDO MATTOS FILHO President