B3 S A Brasil Bolsa Balcão : Manifestation Presentation - ICVM 461 Public Consultation

B3's Positioning-

ICVM 461 Public Hearing

July 9, 2020

Disclaimer

This presentation may contain certain statements that express the management's expectations, beliefs and assumptions about future events orresults. Such statements are not historical fact, being based on currently available competitive, financial and economic data, and on current projections about the industries B3 works in.

The verbs "anticipate," "believe," "estimate," "expect," "forecast," "plan," "predict," "project," "target" and other similarverbs are intended to identify these forward-looking statements, which involve risks and uncertainties that could cause actual results to differ materially from thoseprojected in this presentation and do not guarantee any future B3 performance.

The factors that might affect performance include, but are not limited to: (i) market acceptance of B3 services; (ii) volatility related to (a) the Brazilian economy and securities markets and (b) the highly-competitive industries in which B3 operates; (iii) changes in (a) domestic and foreign legislation and taxation and (b) government policies related to the financial and securities markets; (iv) increasing competition from new entrants to the Brazilian markets; (v) ability to keep up with rapid changes in technological environment, including the implementation of enhancedfunctionality demanded by B3 customers; (vi) ability to maintain an ongoing process for introducing competitive new products and services, whilemaintaining the competitiveness of existing ones; (vii) ability to attract new customers in domestic and foreign jurisdictions; (viii) ability to expand the offer of B3 products in foreign jurisdictions.

All forward-looking statements in this presentation are based on information and data available as of the date they were made, and B3 undertakes no obligation to update them in light of new information or future development.

This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities where such offer or sale would be unlawful prior to registration or qualification under the securities law. No offering shall be made except by means of a prospectus meeting the requirements of the Brazilian Securities Commission CVM Instruction 400 of 2003, as amended.

Context

CVM's Public Hearing 09/19 had the goal of presenting a new regulatory treatment, as per the minutes below, to ensurethe smooth functioning of the market in a scenario of coexistence of more than one organized market (exchanges andorganized OTC) at the same time

Minute A	Replaces CVM'sInstruction 461and deals with the functioning of the regulated securities marketsand the constitution, organization and functioning of the managing entities of the organized markets
Minute B	Offers views about the constitution, organization and functioning of the unified self-regulatory organization (SRO) of the organized markets and the financial market infrastructures operating in the securities markets
Minute C	Amends CVM Instruction 505 to offer views about the execution of orders in the interest of theclient in the context of competition between trading venues (best execution)

Clock synchronization	Standard UTC format with a single time source for clock synchronization, in addition to criteria of precision and accuracy being applied to trading venues and intermediaries, allowing the reconstructionof events in order to evaluate market practices and conducts
Data consolidators	Agrees to the absence of an official data consolidator, but proposes that the CVM establishes minimum requirements for those interested in offering these services
Listing of issuers and securities admission	Listing of must be a requirement to admit stocks and sponsored BDRs to traded, as is the case currently. Other securities - including fixed income - may be admitted to trading without their issuer being listed
Risk management and internalcontrols, authorization to operate	Minimum standards and requirements for governance and internal controls must be defined to avoid possible weakening or deterioration of markets, as well as arbitration between different venues
Suspension and exclusion ofsecurities	A communication mechanism must be created between the different venues in the organized markets,so that, in the event of suspension, exclusion or resumption of trading of the issuer's securities,synchronicity between all venues is ensured

Special trading procedures (block trading)

The improvement of exchanges' special procedures and the creation of specific segments for block trading of securitiescan be healthy for the market.

However,aiming to preserve the integrity of the price discovering, the share of volumes that could be traded withoutpre-trade transparency and without interacting competitively with the central order book should be limited to 15% of thetotal volume.

Special procedures or specific segments for block trading should only be authorized only withinexchange environmentswith acentral counterparty. The main motivations for the positioning are:

• - the centrality of the exchanges increases the chance of buy and sell orders meeting

• - provides equitable access for all intermediaries and investors, mitigating the risk of conflict of interest

• - lower operational complexity (existing processes and systems) and supervision

• - simplification and equality in the application of tax treatment for non-resident investors

• - no need to adapt rules/standards that prevent investors from trading in the OTC market

Finally, B3 argues that the definition of the threshold for ''block trading'' should be attributed to the CVM