B3 S A Brasil Bolsa Balcão : Material Fact - Intermediary Model of the New Pricing Policy for the Listed Equity Market
December 10, 2020 at 06:15 pm EST
Share
B3 S.A. - Brasil, Bolsa, Balcão
Brazilian Federal Taxpayer CNPJ No.09.346.601/0001-25
Corporate Registry (NIRE) No. 35.300.351.452
MATERIAL FACT
Intermediary Model of the New Pricing Policy
for the Listed Equity Market
B3 S.A. - Brasil, Bolsa, Balcão ("Company" or "B3") announces that, as of 02/02/2021, new pricing policies for services in the equities market for (i) trading and post-trading and
central depository will come into effect, with the certification period starting on 12/14/2020.
These policies consider adaptations to the pricing model announced in the Material Fact of 01/02/2020, and updated on 08/13/2020. Considering that the full implementation of the model announced in January involves challenges in terms of systemic preparation by market participants, B3 will establish intermediate rules and revisions of tariffs to allow part of the benefits initially expected to be captured as of February 2nd.
Additional changes, which depend mainly on adjustments in technology systems, will have their implementation date defined in coordination with market participants.
The changes in the equity market fees reflect the context of significant volume increase and aim to share with clients the benefits of scale and operating leverage provided by the Company's business model. These benefits will be shared through the efficient use of fee mechanisms that aim to foster the increase in both trading volumes and number of individual investors who trade in the exchange.
The documents containing the new fee schedules are available on B3´s website.
Main changes expected in the intermediate model:
Trading and post trading services in the cash equities market
Replacement of the progressive discount model based on the global ADTV for a new fee schedule
Differentiated fees for day traders, based on the daily traded volume, enabling the achievement of more accelerated and deeper discounts
Main changes for the central depository services in the equity market
Monthly fixed maintenance fee per account reduced to zero (for local investors)
Full exemption from tariffs on the outstanding positions under custody for accounts with outstanding balances below R$20.000
Custody fee schedule as announced in January
To assist in the analysis of the potential financial impacts of these changes for B3, simulations and backtests were carried out considering the profiles and mix of investors observed in the period between Apr/20 and Jun/20. The results of these simulations and tests showed that, if the new policies had been applied during that period, the Company's revenues would have been around R$250 million lower in annualized figures, which represents about 2/3 of the full net reduction that will be occur with the implementation of the final pricing model (close to R$400 million in annualized terms as per the backtest run by B3). It is important to highlight that it is not possible to assure that once the new pricing policies are implemented, the financial impact for B3 will retain any relationship with the number mentioned above since there may be significant changes in market conditions, in the customer base and in their trading behavior.
B3 SA Brasil Bolsa Balcao published this content on 10 December 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 December 2020 23:14:00 UTC
B3 SA Brasil Bolsa Balcao, formerly BM&F Bovespa SA Bolsa de Valores Mercadorias e Futuros, is a Brazil-based financial market infrastructure provider. The Company's service offerings range from exchange trading, clearing and other post-trading services to registration of over-the-counter (OTC) transactions. The Company also provides a listing service and acts as central securities depository (CSD). It develops software solutions and offers index licensing services. Its business is divided into four segments: Bovespa, which covers trading, clearing and settlement of equities and equity derivatives; BM&F, which covers trading, clearing and settlement of financial and commodities derivatives; Cetip Securities (Cetip UTVM), covering registration, clearing, settlement and custody systems for fixed-income securities and OTC derivatives, and Cetip Financing (Cetip UFIN), which provides an integrated private electronic system for registration of vehicle and real estate loans.
B3 S.A. - BRASIL, BOLSA, BALCÃO 
