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                                                                                                           The Single-Stock Futures Market is a new
SINGLE-STOCK                                                                                               trading segment of BOVESPA designed for the
                                                                                                           buying and selling of shares at a price agreed
FUTURES MARKET                                                                                             between the parties, for settlement at a
                                                                                                           previously authorized future date.
The type of futures trading on BOVESPA is known as “future with
daily settlement of gains and losses”, that is, daily the prices
of all open interest on the Single-Stock Futures Market are             An important aspect of BOVESPA’s Single-Stock Futures Market           Concerning the distribution of cash
compared with a reference price, known as daily settlement              is that the investor holding a long or short position within this      dividends by the issuing companies of
price, which is calculated for each stock/expiration date.              segment does not have to wait until the expiration to offset his       stocks traded on the Single-Stock Futures
For the positions opened on the day, the day’s settlement price         position. He may decide to leave the market at any moment,             Market, the open interest prices are adjusted
is compared with the trade’s price. If the settlement price is higher   from the position’s opening date until the expiration date. To         on the day the stock begins to be traded “ex
than trade’s price, so:                                                 that purpose, the investor must carry out an opposite operation        rights”. The adjustment consists in the
                                                                        on the Single-Stock Futures Market. Offset settlement is made          reduction of the cash dividend value from
Long position: there is a credit in its account equivalent to the
                                                                        exclusively in cash, and the settlement price corresponds to the       the stock’s settlement price of the last
difference between the settlement price and the trade’s price;
                                                                        difference between the offset trading price and the previous           trading day before benefit distribution. With
Short position: there is a debit in its account equivalent to the                                                                              regard to the distribution of stock
                                                                        day’s settlement price.
difference between the settlement price and the trade’s price.                                                                                 dividends, the open interest on the Single-
On the other hand, if the day’s settlement price is lower than the                                                                             Stock Futures Market will not be adjusted
trade’s price, this means that the long position has a loss with the                                                                           to this benefit. Upon settlement, the
transaction and, therefore, a debit will be made in its account,        The expiration date, which corresponds to the last trading day,        contract’s number of stocks and price will
whereas the short position has a gain and a credit will be made in      is the third Monday of the contract month. It coincides with the       be adjusted proportionally to the percentage
its account.                                                            stock options market expiration, thus making it possible to set up     of the benefit, and the settlement will be
                                                                        investment strategies involving futures and options. Open interest     made with “ex rights” stocks, with their
For the positions opened on previous days, the only difference
                                                                        remaining at the end of the last trading day will be automatically
is that the day’s settlement price is compared with the previous                                                                               quantity adjusted. In the case of
                                                                        settled upon physical delivery. On the third business day after
day’s settlement price considering the same reasoning on the                                                                                   subscription or any other type of
                                                                        the expiration day, known as the final settlement date, the seller
matter of debits and credits.                                                                                                                  preference, the future positions will be
                                                                        will receive the amount referent to the sale on the Single-Stock
The Single-Stock Futures Market positions are adjusted from the                                                                                converted to the “ex rights” condition
                                                                        Futures Market and the buyer will receive the stocks bought via
day they are opened until the expiration date, inclusive. The gain      futures contract. The final settlement price will correspond to        through deduction of the theoretical value
or loss corresponding to any given day must be settled on the first     the average price on the cash market registered during the             of the subscription right from the settlement
business day immediately following the event and the settlements        afternoon trading session of the expiration day.                       prices, on the date on which the stock begins
are made exclusively in cash.                                           All positions on the Single-Stock Futures Market, whether long or      to be traded in the “ex rights” condition.

The daily settlement price corresponds to the stock’s average price     short positions, require the deposit of guarantees with the CBLC -
for each expiration on the Single-Stock Futures Market, registered      Companhia Brasileira de Liquidação e Custódia (Brazilian Clearing
during the afternoon trading session. If any stock/expiration had       and Depository Corporation), which can be rendered in two
no trades on the Single-Stock Futures Market in the afternoon           manners: coverage or margin. Coverage is the deposit, by the
                                                                        seller, of the stocks underlying the future position. Once covered,    Always seek a Brokerage Firm member of
trading session, it shall be considered the average price of the                                                                               BOVESPA whenever investing in the stock market.
                                                                        there will not be required any additional guarantees for this future
transactions carried out during the entire day. And, finally, if any
                                                                        position. However, the daily settlements are still carried out
stock/expiration has not been traded on the Single-Stock Futures
                                                                        regularly. With regard to the margin, it is owed by the buyer and by
Market on any given day, then BOVESPA will arbitrate the
                                                                        the uncovered seller and is calculated and managed by CBLC. The
settlement price.                                                       assets accepted as guarantee are those established by CBLC.                 SINGLE-STOCK FUTURES MARKET

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