OREANDA-NEWS. June 30, 2011. Deutsche Bank S.A. has won the fifth selection process for depositary institutions authorized to trade ten Unsponsored Level I Brazilian Depository Receipt (BDR) programs, backed by shares issued by publicly traded companies with headquarters overseas.

Deutsche Bank should simultaneously present BM&FBOVESPA and the Brazilian Securities and Exchange Commission (CVM), within 60 calendar days, with the necessary documentation for submission to register the ten Unsponsored Level I BDR programs. The programs should include foreign companies that do not yet have BDRs traded on BM&FBOVESPA and which are headquartered in the United States and listed on U.S. stock exchanges.

There are currently 20 Unsponsored Level I BDR programs available for trading on BM&FBOVESPA, which have Deutsche Bank S.A. and Citibank Distribuidora de Titulos e Valores Mobiliarios (DTVM) S.A. as their depositary institutions. Three ten-program lots shall be presented to the market soon by Itau Unibanco S.A., Banco Bradesco S.A., and Citibank DTVM S.A..

The Unsponsored Level I BDR is a certificate representing stock issued by a foreign-headquartered publicly traded company or the like. It is thus considered a foreign investment from Brazil, in keeping with the definition of CVM Instruction 332.  The issue and registry of Unsponsored Level I BDRs is the responsibility of a depositary institution in Brazil in which none of the companies represented has a stake.

BDRs can be traded by financial institutions, investment funds, portfolio managers and stock consultant authorized by the CVM - the last two in the list are only permitted to invest own capital – and by supplementary private pension plans and individuals and companies with financial investments of over BRL 1 million. Other individual investors (with financial investments of under BRL 1 million) can only participate in this instrument via funds.