BM&FBOVESPA Begins Level 1 BDR Trading on October 5
Receipts for foreign shares in ten companies to be made available, issued by Deutsche Bank
SAO PAULO, Sept. 23 /PRNewswire-FirstCall/ -- BM&FBOVESPA (BOVESPA: BVMF3), the third largest exchange in the world in terms of market value, will launch an unprecedented product in Brazil on October 5, 2010. As of this date, the exchange will offer investors unsponsored Level 1 Brazilian Depositary Receipts (BDRs) - receipts for foreign shares. This first lot is for BDRs representing 10 companies: Apple Inc., Google Inc., Bank of America Corporation, Arcelor Mittal, Goldman Sachs Group Inc., Avon Products Inc., Wal-Mart Stores Inc., Exxon Mobil Corporation, McDonald's Corp. and Pfizer Inc.. All of these are listed on U.S. exchanges. Germany's Deutsche Bank S.A. is the financial institution responsible for the issue of these receipts.
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Unsponsored Level 1 Brazilian Depositary Receipts (BDRs) represent securities issued by foreign-based listed companies and the like, in accordance with CVM instruction CVM 332/00. For this reason they are considered a Brazilian foreign investment. Issue and registry are the responsibility of a depository institution in Brazil, with there being no participation from the companies.
Financial institutions, investment funds, portfolio managers and stock consultants that are authorized by the Brazilian Securities and Exchange Commission (CVM) will all be able to trade the new product. The last two in the list are only permitted to invest own capital. Individual investors will only be permitted involvement in the new instrument through funds. Trading will be on the Bovespa's over-the-counter market.
SOURCE BM&FBOVESPA
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