August 16, 2022 100/2022-PRE

CIRCULAR LETTER

OTC and Listed B3 Participants

Re.: Launch of Brazilian Federal Government Bond Lending and Specific

Repos with Central Counterparty (CCP)

B3 hereby informs you of the launch of the Brazilian Federal Government Bond Lending and Specific Repos with Central Counterparty (CCP) products.

Transactions will be executed through B3's Securities Lending Platform (BTB) and post-trade through the B3 Real Time Clearing (RTC) system.

There is voluntary contracting of these new products, which aim to help B3 market participants to support settlement commitments, optimize capital allocation and enable counterparty credit risk equalization in the market.

All the parties involved will settle transactions via the B3 Clearinghouse, which uses the Close-Out Risk Evaluation (CORE) risk calculation methodology, which is one of the most modern and secure risk systems in the world.

This document produces effects as of the date of its publication. Any specified time limits for validity shall apply.

1

This free translation into English from the original version in Portuguese is available for information purposes only, has no t

been reviewed by B3's legal counsel, and is therefore not legally binding. Any questions arising from this free translation should be clarified by consulting the original version in Portuguese. In the event of any discrepancy between this free

translation and the original version in Portuguese, the original version in Portuguese shall prevail.

INFORMAÇÃO PÚBLICA - PUBLIC INFORMATION

100/2022-PRE

Launch timetable

The launch of the Brazilian Federal Government Bond Lending and Specific Repos with Central Counterparty (CCP) products will follow the timetable below, conditional upon the regulators approving the guidelines.

Market

Launch date

Specific repo

September 12, 2022

Securities lending

October 10, 2022

The products go live on different dates, as set out in the table above, to ensure that B3 clients adapt to the new products while maintaining the business continuity of participants.

Certification

The products require mandatory certification for participants interested in contracting the services. The step-by-step guide and the requirements are available at https://clientes.b3.com.br/en_us/, Roadmap, Federal Government Bonds (TPF) - Lending and Specific Repos.

Manuals and Rules

A Circular Letter announcing the new versions of the Glossary, the B3 Access Manual, B3 Clearinghouse Rules, B3 Clearinghouse Risk Management Manual and B3 Clearinghouse Operating Procedures Manual, containing changes regarding the new products, will be published in due course prior to the launch of the Specific Repo, which is scheduled for September 12, 2022, conditional upon normative approval by the regulatory bodies.

This document produces effects as of the date of its publication. Any specified time limits for validity shall apply.

2

This free translation into English from the original version in Portuguese is available for information purposes only, has not

been reviewed by B3's legal counsel, and is therefore not legally binding. Any questions arising from this free translation should be clarified by consulting the original version in Portuguese. In the event of any discrepancy between this free

translation and the original version in Portuguese, the original version in Portuguese shall prevail.

INFORMAÇÃO PÚBLICA - PUBLIC INFORMATION

100/2022-PRE

Contracting/Adherence

The Brazilian Federal Government Bond Lending and Specific Repos with Central Counterparty (CCP) products described herein will be brought into operation via four B3 systems:

  • BTB: contracting and registration
  • RTC: control, maintenance and settlement of agreements
  • SINACOR (only brokerage houses): control, maintenance and settlement of agreements
  • iMercado: flow for brokerage matching

The system is accessible through the following connection channels:

  • BTB: automation via ISO 20022 messaging, API and BTB terminal (screen)
  • RTC: automation via ISO 20022 messaging and RTC screen
  • SINACOR: SINACOR screen, billing module
  • iMercado: automation via ISO 20022 messenger and IMBW screen
  • FPB: B3 messaging file repository, accessible via UAC

The products have optional contracting. The contracting procedures are described below.

This document produces effects as of the date of its publication. Any specified time limits for validity shall apply.

3

This free translation into English from the original version in Portuguese is available for information purposes only, has not

been reviewed by B3's legal counsel, and is therefore not legally binding. Any questions arising from this free translation should be clarified by consulting the original version in Portuguese. In the event of any discrepancy between this free

translation and the original version in Portuguese, the original version in Portuguese shall prevail.

INFORMAÇÃO PÚBLICA - PUBLIC INFORMATION

100/2022-PRE

Participant registration

To have access to the Brazilian Federal Government Bond Lending and Specific Repos with Central Counterparty (CCP) products, custody agents must request the creation of a SELIC account via the Listed B3 registration platform SINCAD and link it to a custody account at SINCAD, in accordance with the registration script at https://clientes.b3.com.br/en_us/, Roadmap, Federal Government Bonds (TPF) - Lending and Specific Repos.

After linking the SELIC account to a custody account at SINCAD, the custody agents must request registration authorization at the Federal Government Bonds segment of the B3 Clearinghouse (segment 8) in the institution's trading code.

In case of doubts regarding the registration system, participants can contact B3's Registration Service Center by telephone on +55 11 2565-5071 or email at cadastro@b3.com.br.

Access to B3's systems

1. B3's Securities Lending Platform (BTB) terminal

The BTC terminal is accessed through the link below, with the credentials registered and provided by the institution's user with permission level.

URL

IP

Port

https://clearing2.bvmfnet.com.br/BTB

177.54.211.49

Ports: 443 and

80

This document produces effects as of the date of its publication. Any specified time limits for validity shall apply.

4

This free translation into English from the original version in Portuguese is available for information purposes only, has not

been reviewed by B3's legal counsel, and is therefore not legally binding. Any questions arising from this free translation should be clarified by consulting the original version in Portuguese. In the event of any discrepancy between this free

translation and the original version in Portuguese, the original version in Portuguese shall prevail.

INFORMAÇÃO PÚBLICA - PUBLIC INFORMATION

100/2022-PRE

1.1 Contracting the BTB terminal in Production (Screen)

The user must request that the user with permission level at its institution create the credential with inclusion of the profile destined for its activity at BTB. For the user with permission level to visualize and provide the new profiles at UAC, it must contract them via CSNET.

Institutions that do not have access to UAC and CSNET and which consequently do not have a user with permission level must request credentials for this type of access from B3's Contracting Department by email at contratacao@b3.com.br, or by telephone on +55 11 2565-5084.

The list below encompasses the BTB profiles available for contracting via UAC.

Profile ID

Profile Description

Category

BTB_EXTERNO-TPF_BVMF

Access to the Securities Lending Contracting

PNP/PL

System - Fixed Income - Participant

BTB_EXTERNO-TPF-ACST_BVMF

Access to the Securities Lending Contracting

ACST

System - Fixed Income - Custody Agent

BTB_EXTERNOACSTCONSULTA-

Consulting access to the Securities Lending

ACST

TPF_BVMF

Contracting System - Fixed Income -

Custody Agent

BTB_EXTERNOPNPCONSULTA-

Consulting access to the Securities Lending

PNP

TPF_BVMF

Contracting System - Fixed Income -

Participant

BTB_EXTERNOPLCONSULTA-

Consulting access of the Securities Lending

PL

TPF_BVMF

Contracting System - Fixed Income -

Participant

The list below contains the profiles available for contracting by institutions that do not have access via UAC and CSNET (BuySide access profiles).

Profile Name

Profile Description

Category

BTB_EXTERNO-BUYSIDE-CONSULTA-

Access to the Securities Lending Contracting

GEST/

TPF_BVMF

System - Fixed Income - Manager

FCAO

This document produces effects as of the date of its publication. Any specified time limits for validity shall apply.

5

This free translation into English from the original version in Portuguese is available for information purposes only, has not

been reviewed by B3's legal counsel, and is therefore not legally binding. Any questions arising from this free translation should be clarified by consulting the original version in Portuguese. In the event of any discrepancy between this free

translation and the original version in Portuguese, the original version in Portuguese shall prevail.

INFORMAÇÃO PÚBLICA - PUBLIC INFORMATION

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Disclaimer

B3 SA Brasil Bolsa Balcao published this content on 16 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 August 2022 15:27:01 UTC.