Brasil Brokers Participacoes : Notice to the Market - Acquisition of Material Equity Interest

Avenida Luiz Carlos Prestes, 230, sl. 104-106 22775-055 | Rio de Janeiro | RJ | Brasil

Ph. 55 (21) 3433 3000 | fax [phone]

www.brasilbrokers.com.br

BRASIL BROKERS PARTICIPAÇÕES S.A. CORPORATE TAXPAYER'S ID (CNPJ/MF): 08.613.550/0001-98 COMPANY REGISTRY (NIRE): 33.3.0028096-1 NOTICE TO THE MARKET Brasil Brokers Participações S.A. ("Company"), a publicly-held company, with common shares traded on the Novo Mercado listing segment of the BM&FBOVESPA under the ticker BBRK3, in accordance with Article 12, paragraph 6 of CVM Instruction 358/02, and its future amendments, hereby informs its shareholders and the market in general that it received today a correspondence sent by Morgan Stanley and its subsidiaries (Morgan Stanley Capital Services LLC; Corporate Taxpayer ID (CNPJ): 05.870.238/0001-91, Morgan Stanley & Co. LLC; Corporate Taxpayer ID (CNPJ): 05.448.000/0001-72, Morgan Stanley Uruguay Ltda.; Corporate Taxpayer ID (CNPJ): 05.447.544/001-10, Morgan Stanley & Co. International plc; Corporate Taxpayer ID (CNPJ): 05.448.002/0001-61, Morgan Stanley Smith Barney LLC; Corporate Taxpayer ID (CNPJ): 18.628.845/0001-91, Caieiras Fundo de Investimento Multimercado; Corporate Taxpayer ID (CNPJ): 09.577.034/0001-18, Fórmula XVI Fundo de Investimento Multimercado Crédito Privado - Investimento no Exterior, Corporate Taxpayer ID (CNPJ): 03.068.182/0001-20) informing that after successive acquisitions they now hold twenty-nine million, fifty-eight thousand, seven hundred and fifty (29,058,750) Company common shares, equivalent to fifteen point one percent (15.1%) of all the Company's common shares.

Finally, they declared to have reached short economic exposure through cash-settled derivative instruments referencing twenty-seven million, four hundred thirty thousand, two hundred and seventy-seven (27,430,277) Company common shares, equivalent to fourteen point two percent (14.2%) of all the Company's common shares.

Morgan Stanley declared that the acquisitions are not intended to acquire control over the Company or to change its management structure.

The original communication is filed at the Company's headquarters.

Rio de Janeiro, January 26, 2017.

BRASIL BROKERS PARTICIPAÇÕES S.A. ANDREAS YAMAGATA INVESTOR RELATIONS OFFICER Morgan Stanley

January 18, 2017

Brasil Brokers Participa96es S.A. Attn: Silvio Roberto Vieira Almeida Director of Investor Relations Avenida Luis Carlos Prestes, 230 Salas 104-106

Rio de Janeiro, RJ - Brazil 22775-055

Subject: Amendment Filing

Dear Sir,

One New York Plaza New York, NY 10004

In compliance with the Comissao de Va/ores Mobiliarios ("CVM") Instruction 358 dated January 3, 2002, Article 12, please be notified that, as of January 11, 2017, Morgan Stanley (in the aggregate, through its subsidiaries, Morgan Stanley Capital Services LLC, Morgan Stanley & Co. International plc, Morgan Stanley Uruguay Ltda., Morgan Stanley

& Co. LLC, Morgan Stanley Smith Barney LLC, Caieiras Fundo de Investimento Multimercado and F01mula XVI Fundo de Investimento Multimercado Credito Privado - Investimento no exterior)' reached a position I economic exposure equivalent to 15.1% of the Brasil Brokers Participa96es S.A. (the "Company") outstanding common shares.

Such position relates to 29,058,750 common shares issued by the Company.

Finally, Morgan Stanley reached short economic exposure through cash-settled derivative instruments referencing 27,430,277 or 14.2% of the outstanding common shares of the Company.

Morgan Stanley does not intend to change the control or management of the Company.

By:

I Morgan Stanley Capital Services LLC - CN PJ n° 05.870.238/0001 -91 , Morgan Stanley & Co. LLC - CNPJ n°

05.448 .000/0001 -72, Morgan Stanley Uruguay Ltda. - CNPJ n° 05.447.544/0001 -10, Morgan Stanley & Co. Internationa l pie - CNPJ n° 05.448.002/0001 -61 , Morgan Stanley Smith Barney LLC - CNPJ n° 18.628.845/0001-91 , Caieiras Fundo de Investimento Multimercado - CNPJ n° 09.577.034/0001 -18, Formula XV I Fundo de Investimento Mu ltimercado Credito Privado - Investimento no exterior - CNPJ n° 03.068.1 82/0001 -20.