BM&FBOVESPA Announces Reduction in the Round Lot for ETFs

SAO PAULO, July 21 /PRNewswire-FirstCall/ -- BM&FBOVESPA (BM&FBOVESPA: BVMF3) has announced that as of August 2, 2010 the round lot for index funds or ETFs (Exchange Traded Funds) will be reduced from 100 units to 10 units, which means that the minimum value needed to invest in this product will be ten times less than it was. For example, a round lot for the ETF BOVA11, which mirrors the Bovespa Index, based on its closing price on July 19, would be reduced from BRL6,280.00 to BRL628.00. The objective of this round lot reduction is to increase the trading potential of these funds especially for individual investors.

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ETFs are funds which mirror indexes and their units are traded on the Exchange just like shares. When investors buy the units of any given ETF, they become holders of all the component shares of the index which that ETF replicates without having to buy the shares of each company in the index separately. As a result, ETFs provide investors with a fast, efficient and practical investment opportunity which also facilitates their ability to closely follow the performance of their investment in the respective index.

There are currently seven index funds (ETFs) trading at BM&FBOVESPA. Six are managed by BLACKROCK BRASIL and they are: BOVA11 (iShares Ibovespa Fundo de Indice), SMAL11 (iShares BM&FBOVESPA Small Cap Fundo de Indice), MILA11 (iShares BM&FBOVESPA MidLarge Cap Fundo de Indice), BRAX (iShares Indice Brasil IBrX-100 Fundo de Indice); CSMO (iShares Indice BM&FBOVESPA de Consumo Fundo de Indice); and MOBI (iShares Indice BM&FBOVESPA Imobiliario Fundo de Indice). The seventh, PIBB11 (PIBB Fundo de Indice Brasil - 50 - Brasil Tracker), is managed by Banco Itau.

About BM&FBOVESPA

BM&FBOVESPA S.A. - The Brazilian Securities, Commodities and Futures Exchange was created in 2008 with the integration between the Brazilian Mercantile & Futures Exchange (BM&F) and the Sao Paulo Stock Exchange (Bovespa). Together, the companies have formed the third largest exchanges in the world in terms of market value, the second largest in the Americas, and the leading exchange in Latin America. The Exchange features a vertically integrated business model, with trading, registration, netting, settlement, risk management, market data, and central securities depository services. BM&FBOVESPA's state-of-the-art technological resources provide investors with an efficient and secure trading and post-trading environment. Among its broad range of trading products, the Brazilian Exchange offers equities, securities, financial assets, indices, interest rates, agricultural commodities, as well as foreign exchange futures and spot contracts, and acts as a central counterparty for all of its market segment through its four clearinghouses - equity, derivatives, foreign exchange and securities.

SOURCE BM&FBOVESPA