Circular Letter No. 1/2019-CVM/SMI

07/08/2019 SEI/CVM - 0814924 - Circular Letter https://sei.cvm.gov.br/sei/controlador.php?acao=documento_imprimir_web&acao_origem=arvore_visualizar&id_documento=863701&infra_sistema=100000… 1/2 SECURITIES AND EXCHANGE COMMISSION OF BRAZIL Rua Sete de Setembro, 111/2-5th and 23-34th Floors, Center, Rio de Janeiro/RJ – ZIP: 20050-901 – Brazil - Tel.: (21) 3554-8686 Rua Cincinato Braga, 340/2nd, 3rd and 4th Floors, Bela Vista, São Paulo/ SP – ZIP: 01333-010 – Brazil - Tel.: (11) 2146-2000 SCN Q.02 – Bl. A – Ed. Corporate Financial Center, 4th Floor, S.404, Brasília/DF – ZIP: 70712-900 – Brazil - Tel.: (61) 3327-2030/2031 www.cvm.gov.br Circular Letter No. 1/2019-CVM/SMI Rio de Janeiro, August 7, 2019.

To
Entities authorized to operate in the B3 markets – BM&FBOVESPA segment - that opted to use the new RLP Offer Modality

Subject: Conditions for use of the New Retail Liquidity Provider (RLP) Offer Type.

Dear Sirs,

1. Reference is made to the changes in the Trading Regulations and the Operational Procedures Manual of B3 S.A. – Brasil, Bolsa, Balcão (“B3”), as approved by the CVM Collegiate Board in the meetings of May 21 and 28, 2019, which enabled the implementation of the Retail Liquidity Provider (RLP) offer system in the futures markets for mini-contracts of the US dollar and Ibovespa. The aforementioned changes entered into force on August 5, 2019, as detailed in B3 Circular Letters No. 019/2019-VOP, of June 10, 2019 and No. 054/2019-PRE, of July 31, 2019.
2. Regarding this matter, in accordance with the approval of the Collegiate Board of the agency, without prejudice to the other requirements contained in the CVM decision and the provisions established by B3, it is necessary to clarify the following:

a) the option to be a counterparty to an RLP offer must be available to retail clients exclusively in the form of an opt-in mechanism, whereby the client, through prior and express declaration, manifests their agreement with the system of using the offer in question;

b) the need for prior and express declaration applies to both new clients (at the time of account opening or subsequent adherence to the aforementioned service) and already registered clients, with the favorable declaration not being a condition for opening, maintaining the account or providing securities brokerage services, including those authorized for trading through RLP offers;

07/08/2019 SEI/CVM - 0814924 - Circular Letter https://sei.cvm.gov.br/sei/controlador.php?acao=documento_imprimir_web&acao_origem=arvore_visualizar&id_documento=863701&infra_sistema=100000… 2/2

c) intermediaries are prohibited from acting as counterparties in an RLP offer for clients who have not manifested their use of the service, as mentioned;

d) the opt-out option must always be available to investors who have expressly and previously adhered to the RLP product.

3. It is also necessary to inform that, as provided in CVM Instruction No. 539 of November 13, 2013, intermediaries must pay special attention to their obligations to verify the suitability of clients for products, services, and operations that include RLP offers, considering the client's investment objectives, financial situation, and the knowledge necessary to understand the risks related to operations with the securities in question.

4. The supporting documentation regarding the observance of the obligations mentioned in paragraphs “2” and “3” above must be kept for a minimum period of 5 (five) years, as provided in art. 36 of CVM Instruction No. 505, of September 27, 2011 and in art. 10 of CVM Instruction No. 539 of November 13, 2013.

Sincerely,

Francisco José Bastos Santos
Superintendent of Market Relations and Intermediaries (SMI)

Document electronically signed by Francisco José Bastos Santos, Superintendent, on 07/08/2019, at 11:51, based on art. 6, § 1, of Decree No. 8.539, of October 8, 2015.
The authenticity of the document can be verified on the site https://sei.cvm.gov.br/conferir_autenticidade, by informing the verification code 0814924 and the CRC code FE5CAE7B.
This document's authenticity can be verified by accessing https://sei.cvm.gov.br/conferir_autenticidade, and typing the "Verification Code" 0814924 and the "CRC Code" FE5CAE7B.
Reference: Process No. 19957.002097/2016-90 SEI Document No. 0814924