CVM Instruction 467 of April 10, 2008 (Revoked)

FULL TEXT OF CVM INSTRUCTION NO. 467, OF APRIL 10, 2008, WITH THE AMENDMENT INTRODUCED BY CVM INSTRUCTION NO. 486/10.

Provides for the approval of derivative contracts admitted to trading or registered in organized securities markets. Revokes Article 10 of CVM Instruction No. 283, of July 10, 1998.

THE PRESIDENT OF THE SECURITIES AND EXCHANGE COMMISSION - CVM makes public that the Board, in a meeting held on April 1, 2008, in accordance with the provisions of Article 8, item I, of Law No. 6,385, of December 7, 1976, APPROVED the following Instruction:

SCOPE AND PURPOSE

Art. 1 This Instruction provides for the approval of derivative contracts admitted to trading or registered in organized securities markets.

APPROVAL OF CONTRACT MODELS

Art. 2 Contract models for derivatives admitted to trading in an organized market must be approved by the CVM before trading begins.

Sole Paragraph. Any changes to previously approved derivative contract models must also be submitted for CVM approval before the new terms enter into force.

Art. 3 Derivative contracts that have not been traded in an organized market but are registered in such a market shall be approved by the administrator of the market in which they are registered, being exempt from CVM approval.

Sole Paragraph. The entity mentioned in the caput must maintain, for a period of 5 (five) years, counted from the date of termination of the contracts, the documentation related to its analysis.

Art. 4 The administrator of an organized market must establish and make public rules regarding the procedures and criteria for the approval of derivative contracts registered in its markets.

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Sole Paragraph. The rules and procedures for the approval of derivative contracts must allow the administrator entity to identify and prevent violations of legal and regulatory norms.

Art. 4-A Administrators of organized markets may, observing the provisions of items I and V of § 3 of Art. 1 of Complementary Law No. 105, of January 10, 2001, create mechanisms for sharing information about operations with derivative contracts traded or registered in their systems, for the purpose of risk management by financial institutions.

• Article included by CVM Instruction No. 486, of November 17, 2010.

DERIVATIVE CONTRACTS

Section I – Underlying Assets

Art. 5 The underlying assets of derivative contracts traded in an organized market must have their value calculated based on consistent and verifiable prices and methodologies.

Art. 6 The administrator of the organized market must widely and unrestrictedly disclose the prices of the underlying assets of contracts traded in its markets, with a frequency compatible with the nature of the asset.

Section II – Contract Model Approval Process

Art. 7 The request for approval of contract models to be traded in the organized market must be submitted by the administrator of the market where the contract will be traded, including:

I – the contract with its attachments, containing, at minimum:

a) the object, the trading unit, and the quotation method; b) the trading, maturity, and settlement dates of the contract; c) the criteria for calculating settlement prices, adjustments, and margins; and c) the admitted settlement methods, including the possibility or not of physical delivery of the underlying asset.

II – detailed description of the characteristics of the underlying asset of the contract, the markets in which it is traded, and its participants;

III – specification of access restrictions to the contracts by certain investors, if applicable;

IV – position limits per investor, per intermediary, and for open contracts;

V – statement regarding the adequacy of the methodology for determining the reference value of the underlying asset of the contract;

VI – declaration by the entity responsible for submitting the request that the initiative for the proposal of the new contract comes from the entity itself, or, otherwise, specification of the origin of the proposal initiative.

Art. 8 The approval request shall be forwarded to the Superintendent of Market and Intermediary Relations - SMI, who shall be responsible for its review.

Art. 9 The approval of the contract model shall be granted within a maximum period of 30 (thirty) business days, counted from the date of protocol of the request at the CVM.

§ 1 The period provided in the caput may be interrupted only once, if the CVM requests additional information from the interested party, granting them a period of 30 (thirty) business days to send such information.

§ 2 The CVM shall have a new period of 30 (thirty) business days to approve the contract model, counted from the fulfillment of the requirements made in accordance with § 1.

§ 3 Prior to the denial of the request, the CVM shall send a letter to the entity responsible for its submission, granting it the opportunity to remedy curable defects, if any, within a period of 10 (ten) business days from receipt of the letter.

§ 4 Upon expiration of the period referred to in § 1 or § 3 without the additional information having been presented or the defects remedied, the CVM shall deny the request.

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§ 5 In the event of denial, the CVM shall send a letter to the entity responsible for submitting the request informing its decision, from which an appeal may be made to the CVM Board, in accordance with current regulations.

§ 6 If the CVM does not manifest itself within the periods provided in the caput and in § 2, the contracts shall be considered approved.

CANCELLATION OF APPROVAL

Art. 10 The Superintendent of Market and Intermediary Relations – SMI must determine the cancellation of the approval granted when it is found:

I – the falsity of documents or declarations presented by the entity responsible for submitting the request to the CVM; or

II – the loss of the characteristics of the contract presented at the time of its approval.

Sole Paragraph. An appeal may be made to the CVM Board against the decision that cancels the approval, in accordance with current regulations.

FINAL PROVISIONS

Art. 11 Non-compliance with Art. 2 of this Instruction is considered a serious offense.

Art. 12. Article 10 of CVM Instruction No. 283, of July 10, 1998, is hereby revoked.

Art. 13. This Instruction enters into force 90 (ninety) days after its publication in the Official Gazette of the Union.

Original signed by

MARIA HELENA DOS SANTOS FERNANDES DE SANTANA
President
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