During 2000, the São Paulo Stock Exchange accounted for 100% of the trading value of equity securities on all Brazilian Stock Exchanges.

The São Paulo Stock Exchange is a not-for-profit entity owned by its member brokerage firms. Trading on exchange is limited to member brokerage firms and a limited number of authorized non-members. The São Paulo Stock Exchange has two open outcry trading sessions each day, from 10:30 a.m. to 1:30 p.m. and from 2:30 p.m. to 5:30 p.m. Market makers exist on the São Paulo Stock Exchange, but are only authorized to make markets in options for stock indices which are traded on that exchange and to engage in transactions on META (Mercado de Empresas Teleassistidas), an electronic trading system operating at the São Paulo Stock Exchange and permitting trading in the securities of companies registered for that purpose. These companies must appoint the market makers authorized to deal in their securities. There are no specialists or market makers for our shares on the São Paulo Stock Exchange. The Brazilian securities commission, known as CVM, and the São Paulo Stock Exchange has discretionary authority to suspend trading in shares of a particular issuer under certain circumstances. Trading in securities listed on the São Paulo Stock Exchange may be effected off the exchange in certain circumstances, although such trading is very limited.

Settlement of transactions is effected three business days after the trade date without adjustment of the purchase price for inflation. Payment for shares is made through the facilities of separate clearinghouses for each exchange, which maintain accounts for member brokerage firms. The seller is ordinarily required to deliver the shares to the exchange on the second business day following the trade date. The clearinghouse for the São Paulo Stock Exchange is "Câmara Brasileira de Liquidação e Custodia S.A.", which is owned by members of the exchange.

At December 31, 2000, the aggregate market capitalization of the 467 companies listed on the São Paulo Stock Exchange was approximately U.S.$225.5 billions. Although all the outstanding shares of an exchange-listed company may trade on any Brazilian stock exchange, in most cases less than half of the listed shares are actually available for trading by the public, the remainder being held by small groups of controlling persons that rarely trade their shares. This is particularly true in the case of "mixed-capital" companies, such as Telebrás, before its privatization. According to Brazilian law, "mixed-capital" companies should have more than half of their voting shares owned by Brazilian government entities. For this reason, data showing the total market capitalization of Brazilian stock exchanges tends to overstate the liquidity of the Brazilian equity securities market.

Although the Brazilian equity market is Latin America's largest in terms of market capitalization, it is relatively small and illiquid compared to major world markets. In 2000, the daily trading volumes on that exchange averaged approximately U.S.$410.2 millions. In 2000, the five most actively traded issues represented approximately 47.07% of the total trading in the cash market on the São Paulo Stock Exchange.

Trading on Brazilian stock exchanges by non-residents of Brazil is subject to certain limitations under Brazilian foreign investment legislation.