• BRZ CVM issued Resolution 220 to amend Resolution 135 by increasing limit that stock market participants can hold in the voting shares of entity managing stock exchange.
• Follows BRZ CVM June 2022 Res 135 re securities market operations.

Overview

• The shareholding limit increase has safeguards and measures to mitigate conflicts of interest, preserve equitable access, reduce unequal treatment of exchange participants
• CVM Resolution 220 extends countermeasures to form relevant shareholding positions in voting capital of counter-administrating entities organized by market participants.
• Improves operational flow of approvals re administrative entities, central depositories, changes appeals filed in denial decisions under the Loss Compensation Mechanism.

Effectiveness

• Resolution 220 comes into effect on 2 January 2025.