OREANDA-NEWS. August 4, 2011. BM&FBOVESPA announces the start of the selection process for up to three market makers for options on the stock of BM&FBOVESPA S.A (BVMF3) and Usinas Siderurgicas de Minas Gerais S.A. – Usiminas (USIM5) and for options on the BOVESPA Index (IBOV). This is the second stage of the Bidding Program to select market makers in equity options and BOVESPA Index options, developed by the Exchange. Institutions that are interested in taking part – including nonresident ones – have until September 26, 2011 to deliver proposals. The winners will be announced on October 11, 2011 .

The winners for each of the objects of the competitive bidding process will be the three proposals that present the lowest maximum volatility spreads, defined as the percentage calculated on the basis of the ratio between the implied volatilities of the bid and offer prices for each option.

The bidding program, divided into four stages, has been developed to select market makers for options on the stock of ten companies (excluding Petrobras and Vale) selected by decreasing order of cash market liquidity, based on 2010, and options on the BOVESPA Index. In July, the Exchange announced market makers for OGX and Itau Unibanco which should begin acting by September 12, 2011. The third stage, programmed for September 2011, will be for options on the stock of Banco Bradesco S.A., Gerdau S.A and Banco do Brasil S.A. In the fourth stage, programmed for November 2011, it will be the turn of options on the stock of Cia Siderurgica Nacional, da PDG Realty S.A. Empreendimentos e Participacoes and Cyrela Brazil Realty S.A. Empreendimentos e Participacoes.

The purpose of the program is to encourage trading in options, raising the liquidity of underlying assets in the BOVESPA segment beyond Petrobras and Vale, as well as to stimulate longer maturities on these contracts.