Mandatory Pre-Registration Of Transactions With Debentures In The Organized Securities Markets In Brazil

On February 4, 2015, the Superintendency of Relations with the Market and Intermediaries (Superintendência de Relações com o Mercado e Intermediários - SMI) of the Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários - CVM) issued Circular-Letter/CVM/SMI/No. 03/2015, confirming that the mandatory pre-registration is required in the case of any transactions made with debentures in the local organized securities markets. The content of this document is disclosed herein.

Fastening of public access to information is a critical aspect of the regulation of the secondary market of securities. The appropriate level of transparency in the market, as well as the timely information to investors is important goals to CVM. They are sought not only by the direct action of the regulator but also by an ongoing dialogue and partnership with self regulator entities and market participants.

Thus CVM has increasingly emphasized the role of self-regulation and its integration to the regulatory regime, with new responsibilities. The dialogue between the regulator and the self regulator entities has been constant and invariably such partnership has led to improvements in the different markets under the competence of CVM.

In line with these goals, SMI has recently determined that the organized securities markets have to change their regulations so as to require the pre-registration of the conditions relating to the...