Itaú Unibanco S.A. has won the second selection process for depositary institutions authorized for trading 10 unsponsored level 1 Brazilian Depository Receipt (BDR) programs, backed by shares issued by publicly traded companies with headquarters overseas. On Monday, BM&FBOVESPA opened the proposals and announced the result of the process, in which three financial institutions participated. Itaú Unibanco should present BM&FBOVESPA, within 60 calendar days, with proof of its submission for registration of the 10 Unsponsored Level 1 BDR programs with the Brazilian Securities and Exchange Commission (CVM). As of the CVM granting it registration, the financial institution will have 10 days calendar days to submit a request to the Exchange for authorization to trade. There are currently 20 Unsponsored Level 1 BDR programs that are available for trading on BM&FBOVESPA. Ten of these have Deutsche Bank as their depositary institution and the other ten have Citibank Distribuidora de Títulos e Valores Mobiliários S.A. What are Unsponsored Level 1 BDRs? The product can be traded by financial institutions and mutual funds; and by portfolio managers and securities consultants authorized by CVM provided that they use their own resources. Trading occurs in the over-the-counter market.
Unsponsored Level I BDRs are certificates representing shares issued by publicly-held companies - or equivalent - that are headquartered abroad, in accordance with the terms of CVM Instruction 332/00. Ownership of BDRs is considered a foreign investment. Different to Sponsored BDRs - which are issued by the companies that are headquartered overseas - Unsponsored Level I BDRs are issued and registered under the responsibility of a depositary institution in Brazil, without the participation of the companies.
FTSE Mondo Visione Exchanges Index:
Itaú Unibanco Wins Selection Process As A Depositary Institution For Unsponsored Level 1 BDRs - As A result There Will Soon Be 30 Unsponsored Level 1 BDR Programs Available For Trading On BM&FBOVESPA
Date 07/02/2011