May 28, 2018 004/2018-VPC

CIRCULAR LETTER

To: ’s Market Participants – BM&FBOVESPA Segment

Re: Market Maker Accreditation Process for Options on BBSE3, CSNA3, CYRE3, ESTC3, KROT3, PCAR4, HYPE3, RADL3, EQTL3, EMBR3, RAIL3, BRKM5, MULT3, LAME4, SUZB3, and FIBR3.

For this Program, there will be accreditation of up to five (5) Market Makers for each of the securities listed below. If the number of accreditation requests surpasses the number of available openings, the selection of the Market Makers to be accredited shall be at the sole discretion of B3.

BB Seguridade Participações S.A. (BBSE3) S.A. (EMBR3) S.A. (CSNA3) Rumo S.A. (RAIL3) Cyrela Realty S.A. (CYRE3) S.A. (BRKM5) Estácio Participações S.A. (ESTC3) Multiplan S.A. (MULT3) Kroton Educacional S.A. (KROT3) S.A. (LAME4) Cia Brasileira de Distribuição (PCAR4) S.A. (SUZB3) Hypera S.A. (HYPE3) Celulose S.A. (FIBR3) Raia Drogasil S.A. (RADL3) Equatorial Energia S.A. (EQTL3)

Accreditation process

Institutions that wish to take part in the Program can find the relevant information in the Procedures Guide for the Accreditation of Derivatives Contract Market Makers (Guide), at www.bmfbovespa.com.br/en_us, Services, Market Maker, Join in, Accreditation.

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Time frames

Submission of the Registration of Instrument of Start of activity End of link accounts Accreditation

Until June 15, 2018 June 22, 2018 July 02, 2018 June 30, 2019

B3 may, at its sole discretion, assess the accreditation applications submitted outside the time frames indicated in this Circular Letter, provided there is due justification for this.

Activity parameters

The Market Makers accredited in this Program must make bids and offers in accordance with the following activity parameters (Parameters):

Activity period during Security Round lot Spread Contract months the trading session

BBSE3 7,000 R$0.05 BRKM5 1,500 R$0.08 CSNA3 4,500 R$0.05 CYRE3 4,000 R$0.05 EMBR3 3,500 R$0.05 EQTL3 1,500 R$0.07 ESTC3 2,000 R$0.05 FIBR3 2,000 R$0.12 80% 1st and 2nd HYPE3 2,500 R$0.08 KROT3 7,000 R$0.05 LAME4 3,500 R$0.05 MULT3 1,000 R$0.10 PCAR4 1,000 R$0.10 RADL3 1,500 R$0.14 RAIL3 9,000 R$0.03 SUZB3 4,000 R$0.08

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Please note that Market Makers shall perform their activity in up to five (5) business days before the expiration date of the first contract month authorized for trading. As of the fourth business day prior to such expiration date, Market Makers’ activity is no longer mandatory for the first contract month, and their obligation shall pass on to the two subsequent contract months authorized for trading.

Mandatory series and Market Maker selection rules are available at www.bmfbovespa.com.br/en_us/, Services / Market Maker / Derivatives / Options. It should be noted that in this Program there was a change to the selection interval of mandatory series.

Test period

The accredited institution shall enjoy the Market Maker benefits specified below, without having to observe the Parameters, for up to ten (10) business days before the start of its formal activity, so that it can execute connectivity, trading session and order routing tests, as well as other necessary technological configurations. After the test period, the activity of the institutions accredited as Market Makers shall be monitored by B3.

Maximum number of parameter breaches

Accreditation to this Market Maker Program may be cancelled if more than twelve (12) times there are unjustified breaches of the Parameters and/or obligations set forth in this Circular Letter and in the Agreement of Accreditation for Market Maker Activity, or if there is a justification not accepted by B3.

Minimum time frame for activity

If the Market Makers desist from the accreditation process, without having begun their activities in this Program, they shall be exempted from meeting the minimum time frame for activity of thirty (30) days as set forth in Circular Letter 109/2015- DP, dated October 08, 2015. If this cessation occurs after the start of their activity, the Market Makers must, without fail, comply with the thirty (30) days prior notice, so that the de-accreditation may be communicated to the market.

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Benefits

Accredited institutions shall be exempted from exchange fees and from the following fees: (i) fixed and variable fees, (ii) settlement fees, and (iii) permanence fees, if any, on executed trades, including those involving non-mandatory series, in the cash and/or futures markets for the assets underlying the options in each program, as long as they have been executed for delta hedging purposes in the same trading session in which the asset was traded. The delta hedging percentage will be 50% (fifty per cent), to be applied to the quantity of options traded in all option series on the day it is calculated, including for non-mandatory series.

It should be noted that the flow of messages, trades and volumes generated by accredited institutions will not be considered for the purposes of the Policy for the Control of Messages, as set forth in Circular Letters 039/2013-DP, dated May 27, 2013, and 050/2013-DP, dated July 30, 2013.

General provisions

Any omissions regarding the accreditation process and Program shall be resolved by B3.

Further information may be obtained from the Chief Product and Client Officer’s team by telephone on +55 11 2565-4218 / 2565-5338 / 2565-6947 or by email at [email protected].

José Ribeiro de Andrade Cícero Augusto Vieira Neto Chief Product and Client Officer Chief Operating Officer

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