BYMA incorporates new operation: Trading by Auctions

This is a trading modality, existing in other markets in the region, which seeks to concentrate the trading of low liquidity and/or low trading frequency species in predetermined periods of time in order to contain price volatility and allow interaction among all traders during the auction period.

BYMA within the secondary trading environment that it performs on the MILLENNIUM platform, has resolved to incorporate a new type of trading that it has named "Auction Trading".

This is in response to a request from the CNV which, in order to protect investors, asked the market to distinguish those listed companies which, due to their low liquidity, may give rise to excessive price volatility.

Reason for which, regulator and market worked together and agreed to separate these low liquidity companies in the trading, in order to adopt the auction modality (see Circular 3578), in search of a price formation where the plurality of investors converge in a determined space of time (hence the name and application of the auction) where all participants -buyers and sellers- make offers so that MILLENNIUM can then determine an equilibrium price and execute the offers that satisfy that single price automatically determined by the system.

It is also worth noting that the permanence of companies in this auction segment is not permanent and will be determined by different attributes linked to liquidity in the negotiation.

As from the entry into force of Circular 3578, the variable income marketable securities (shares) detailed in the Annex to such regulation, will begin to be traded exclusively through Price Auctions to be held at three predetermined times:

• Opening Auction: From 10:00 a.m. to 12:00 noon, from 10:30 a.m. to 12:00 noon.30 a.m. to 12.00 a.m.
• Intermediate Auction: From 3:00 p.m. to 4:00 p.m.
• Intermediate Auction.00 hs.
• Closing Auction: From 16:30 to 17:00 hs.

About Auctions:

Auctions are periods in which orders are entered, modified and cancelled without price compatibility causing the closing of trades until the end of the auction and always attending the Price / Time Priority (PPT) of the orders entered.

At the close of each auction, the MILLENNIUM trading system will automatically generate all possible trades at a single price (break-even price) which is determined following a predetermined calculation algorithm.

About MILLENNIUM:

MILLENNIUM securities trading platform, belonging to the London Stock Exchange group, was acquired and implemented by BYMA this year with the aim of providing the best service to its participants and being able to use applications on workstations and open interfaces for interconnection with the different services provided by the Institution. The trading platform is state-of-the-art technology and is currently used by the London, Milan, Oslo and Johannesburg stock exchanges, among others.