CVM Instruction No. 173 of January 29, 1992

CVM INSTRUCTION NO. 173, OF JANUARY 29, 1992.

Amends CVM Instructions Nos. 116 and 117, dated May 3, 1990, which provide, respectively, on the proprietary securities portfolios of distribution and brokerage companies.

THE PRESIDENT OF THE SECURITIES COMMISSION makes public that the Collegiate Body, in a session held on this date, having regard to the provisions of item IV, of Article 2 of the Regulation annexed to CMN Resolution No. 1,120, of April 4, 1986, with the wording given by CMN Resolution No. 1,653, of October 26, 1989 and item IV of Article 2 of the Regulation annexed to CMN Resolution No. 1,655, of October 26, 1989,

RESOLVED:

Art. 1. Amend Article 4 of CVM Instruction No. 116, of May 3, 1990, which shall henceforth be in force with the following wording:

"Art. 4. Distribution companies may operate proprietary securities portfolios, in any modality, on exchange and over-the-counter markets, up to the limit of their adjusted net worth, calculated based on the immediately preceding month, in accordance with the standards contained in the Accounting Plan of the Institutions of the National Financial System (COSIF)."

§1. For positions not covered in forward, futures, forward, and options markets, excluding hedging operations, distribution companies must observe a limit equivalent to 20% (twenty percent) of their adjusted net worth, calculated based on the immediately preceding month, in accordance with the standards contained in the Accounting Plan of the Institutions of the National Financial System (COSIF).

§2. It is the responsibility of stock exchanges, futures exchanges, and similar entities, and over-the-counter associations to establish their own criteria, aiming to define hedging operations carried out by the proprietary securities portfolios of distribution companies, which must be immediately communicated to the CVM.

Article 2. Amend Article 4 of CVM Instruction No. 117, of May 3, 1990, which shall henceforth be in force with the following wording:

"Art. 4. Brokerage companies may operate proprietary securities portfolios, in any modality, on exchange and over-the-counter markets, up to the limit of their adjusted net worth, calculated based on the immediately preceding month, in accordance with the standards contained in the Accounting Plan of the Institutions of the National Financial System (COSIF)."

§1. For positions not covered in forward, futures, forward, and options markets, excluding hedging operations, brokerage companies must observe a limit equivalent to 20% (twenty percent) of their adjusted net worth, calculated based on the immediately preceding month, in accordance with the standards contained in the Accounting Plan of the Institutions of the National Financial System (COSIF).

§2. It is the responsibility of stock exchanges, futures exchanges, and similar entities, and over-the-counter associations to establish their own criteria, aiming to define hedging operations carried out by the proprietary securities portfolios of brokerage companies, which must be immediately communicated to the CVM.

§3. This Instruction shall enter into force on the date of its publication in the Official Gazette of the Union.

Signed by
ARY OSWALDO MATTOS FILHO
President