CVM INSTRUCTION NO. 244, OF MARCH 1, 1996.

Provides for the market-making function for securities on Stock Exchanges or Organized Over-the-Counter Markets and gives other provisions.

THE PRESIDENT OF THE SECURITIES AND EXCHANGE COMMISSION - CVM 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 and Organized Over-the-Counter Market Entities, of legal entities interested in carrying out operations intended to form a market for securities registered for trading, shall be admitted.

Art. 2. It is the responsibility of Stock Exchanges and Organized Over-the-Counter Market Entities to issue norms and regulations regarding operations intended to form a market for securities, as well as regarding the information to be provided by their participants in the exercise of the market-making function.

§1. The Exchanges and Organized Over-the-Counter Market Entities must submit these norms and regulations, as well as subsequent amendments, to the prior approval of the CVM, as a condition for their participants to carry out the operations referred to in this Instruction.

§2. The absence of a manifestation by the CVM within a period of 60 (sixty) days shall imply its approval.

Art. 3. The regulation of the market-making function must provide, at a minimum, the following:

a) definition of whether the system used will admit the exercise of the market-making function on an exclusive basis or on a competitive regime;

b) selection criteria among interested parties, for the exercise of the market-making function;

c) definition of criteria for evaluating and assessing the performance of market makers;

d) definition of limits for the mandatory placement of buy or sell offers for securities, as well as the definition of criteria for fulfilling orders;

e) rules for the accreditation and de-accreditation of market makers;

f) rules regarding the disclosure to the market, by market makers, of the securities in which they specialize.

Art. 4. It is prohibited for market makers to receive, under any title, remuneration or loans from the issuer of the securities in which they specialize, as well as from the controlling shareholders of the company, or from affiliated and controlled companies.

Art. 5. This Instruction enters into force on the date of its publication in the Official Gazette of the Union, revoking CVM Instruction No. 121, of June 6, 1990.

Signed original by

FRANCISCO AUGUSTO DA COSTA E SILVA
President