Circular Letter No. 4/2024/CVM/SIN

SECURITIES AND EXCHANGE COMMISSION OF BRAZIL
Rua Sete de Setembro, 111/2-5th and 23-34th Floors – Center – Rio de Janeiro - RJ – CEP: 20050-901 – Brazil Tel.: (21) 3554-8686 - www.cvm.gov.br Circular Letter No. 4/2024/CVM/SIN Rio de Janeiro, August 6, 2024

To Managers and Administrators of Index Funds

Subject: Theoretical price of shares of funds indexed to fixed income assets (Fixed Income ETFs).

1. This Circular Letter provides clarification regarding the possibility of using a theoretical price for the shares of Fixed Income ETFs that are to be made available by B3 S.A. – Brasil, Bolsa, Balcão (B3) in its capacity as the administrator of an organized market and in compliance with the provisions of Article 19, item III of Normative Annex V of CVM Resolution No. 175, of December 23, 2022.

2. Fixed Income ETFs are instruments that seek to increase the efficiency of the Brazilian fixed income market, offering an alternative for investors to access an open-end fixed income fund through exchange trading. However, currently these ETFs still have a liquidity difference when compared to their underlying market, which, on days of low liquidity, can result in distortions in the closing price currently published by B3.

3. The theoretical price of the share of Fixed Income ETFs, calculated and made available by B3 in an External Communication in August 2024, aims to serve as an additional reference for the market during periods of low liquidity.

4. The theoretical price of the share of Fixed Income ETFs does not alter the publication of the closing price, and its disclosure is conditioned on the sending of the ETF basket to B3 by the respective fund administrators.

5. The CVM understands that the theoretical price of the Fixed Income ETF share published by B3 contributes to the adequate price formation of Fixed Income ETF shares and may be used for their marking, contributing to the reduction of informational asymmetries and to informed decision-making by investors.

Sincerely,

Digitally signed by
MARCO ANTONIO VELLOSO DE SOUSA
Superintendent of Institutional Investor Supervision