CVM INSTRUCTION NO. 121, OF JUNE 6, 1990.

Provides for operations intended to form a market for shares on a Stock Exchange and gives other provisions.

The BOARD OF DIRECTORS OF THE SECURITIES AND EXCHANGE COMMISSION makes public that, in a session held on this date, in view of the provisions of Article 18, item II, letter a, of Law No. 6,385, of December 7, 1976,

RESOLVED:

Art. 1. The registration with Stock Exchanges of broker-dealers interested in carrying out operations intended to form a market for shares of companies registered for trading on the exchange, which shall be called Specialized Operators, shall be admitted.

Art. 2. It is the responsibility of the Stock Exchanges to issue rules and regulations regarding operations intended to form a market for shares, as well as regarding the information to be provided by their members in the exercise of the function of Specialized Operator.

§ 1. The Stock Exchanges must submit these rules and regulations to the prior approval of the CVM, as a condition for their associates to carry out the operations referred to in this Instruction.

§ 2. The absence of a statement from the CVM within 30 calendar days shall imply its approval.

Art. 3. The regulation of specialized operators must provide, at a minimum, the following:

a) method of allocation of shares among interested institutions; b) minimum number of specialized operators per share; c) method of evaluation and definition of performance criteria for each specialized operator for each security; d) definition of limits for mandatory placement of buy or sell offers for securities; e) rules for accreditation and de-accreditation of specialized operators;

f) rules regarding the disclosure to the market, by accredited companies, of the shares in which they are specialized.

Art. 4. In operations with shares for which the institution is accredited as a specialized operator by a Stock Exchange, the rule provided in Article 11 of CVM Instruction No. 117, of May 3, 1990, shall not apply.

Art. 5. This Instruction enters into force on the date of its publication.

Signed original by

ARY OSWALDO MATTOS FILHO
President