B3 S A Brasil Bolsa Balcão : CVM Resolutions 134 and 135 Presentation

CVM Resolutions 134 and 135

June 13, 2022

Forward looking statements

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

The verbs "anticipate," "believe," "estimate," "expect," "forecast," "plan," "predict," "project," "target" and other similar verbs are intended to identify these forward-looking statements, which involve risks and uncertainties that could cause actual results to differ materially from those projected 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 enhanced functionality demanded by B3 customers; (vi) ability to maintain an ongoing process for introducing competitive new products and services, while maintaining 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, 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.

INFORMAÇÃO PÚBLICA2- PUBLIC INFORMATION

CVM Resolutions 134 and 135

Context

CVM Resolutions 134 and 135 stem from the Public Hearing SDM 9/2019 and have as their main objective:

• Resolution 134 - To amend CVM Resolution 35 to provide for the best execution rule for orders in a competitive environment of trading venues.
• Resolution 135 - To give new wording to CVM Instruction 461, introducing provisions in the regulations on the functioning of regulated securities markets and in the constitution, organization and functioning of the entities managing the organized market.

Key Topics

• Regulatory requirements
• Self-regulatoryorganization
• Best execution rule
• Internalization
• Block trades

INFORMAÇÃO PÚBLICA3- PUBLIC INFORMATION

CVM Resolutions 134 and 135

Regulatory requirements

• Bar to create an exchange maintained at a high level, prioritizing Brazilian Markets' integrity and quality, with advanced requirements of internal controls, risk management, governance, cyber security, and technology.
• Dispersed capital structure maintained (market participants up to 10% and other entities need previous CVM approval to go above 15%), emphasizing the independence and neutrality that an exchange must have.

Self-regulatory organization (SRO)

• Initially proposed single SRO model will not be implemented and organized markets (exchange and OTC) must create their own SRO or hire the services of an existing one.
• Exchanges must create a guarantee funds (MRP) aiming to protect retail investors.

INFORMAÇÃO PÚBLICA4- PUBLIC INFORMATION

CVM Resolutions 134 and 135

Best Execution

• CVM maintained the model proposed at the public hearing, in line with the European one, in which the duty of best execution falls on the intermediary.
• Best execution rules differentiate qualified and non-qualified investors: no changes in the case of qualified investors (client and intermediary set the parameters), for non-qualified investors, higher weight for total disbursement.

Internalization

• Internalization of orders still forbidden, emphasizing the transparency provided by the exchange and its importance for price discovering.
• Despite requests from intermediaries and consultation from the ministry of finance, CVM understands that the transparency and broad and isonomic access for all investors provided by the central order book are key to preserve high quality price discovery.

INFORMAÇÃO PÚBLICA5- PUBLIC INFORMATION