OREANDA-NEWS. October 12, 2011. BM&FBOVESPA announced the winning institutions in the second selection process for market makers for options on stocks and on the BOVESPA Index (Ibovespa). The market maker obligation shall last twelve (12) months as of December 12, 2011.

Banco Citigroup Global Markets Limited, Banco Itau BBA S.A. and Timber Hill LLC shall be market makers for options on the BOVESPA Index (IBOV), complying with a maximum volatility spread of half a percentage point (0.5%).

The institutions selected for options on stocks in BM&FBOVESPA S.A. (BVMF3) were Citadel Securities LLC, Citigroup Global Markets Limited and Morgan Stanley Uruguay Ltda, which shall be market makers complying with a maximum volatility spread of four percent (4%).

Meanwhile, the institutions selected for options on stocks in Usinas Siderurgicas de Minas Gerais S.A. (USIM5) were Banco BTG Pactual S.A. and Morgan Stanley Uruguay Ltda, which shall be market makers complying with a maximum volatility spread of twenty percent (20%).

The selected institutions presented the lowest maximum volatility spreads, which are 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 rules of this process are described in the Bid Notice.

The next stage, which started in September, shall be for options on the stocks of Banco Bradesco S.A., Gerdau S.A. and Banco do Brasil S.A.. The fourth stage shall be for options on the stocks of Cia Siderurgica Nacional, PDG Realty S.A. Empreendimentos e Participacoes and Cyrela Brazil Realty S.A. Empreendimentos e Participacoes.