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

Avenida Luiz Carlos Prestes, 230, sl. 104-106 22775-055 | Rio de Janeiro | RJ | Brasil phone [phone] | 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 in the Novo Mercado segment of B3 under ticker BBRK3, pursuant to article 12, paragraph 6 of CVM Instruction 358/02 and amendments thereto, hereby informs its shareholders and the market in general that it has received a letter from Morgan Stanley stating that, through its subsidiaries Morgan Stanley Capital Services LLC; Morgan Stanley & Co. LLC; Morgan Stanley Uruguay Ltda.; Morgan Stanley & Co. International plc; Morgan Stanley Smith Barney LLC; Caieiras Fundo de Investimento Multimercado; Fómula XVI Fundo de Investimento Multimercado Crédito Privado - Investimento no Exterior, it had reached a position/exposure equivalent to 3.4% of the total number of common shares of the capital stock.

Finally, it declared that it had reached its long exposure through derivative financial instruments with expected financial settlement referenced to 5,000,000 shares of the Company, equivalent to 2% of the total number of common shares of the Company, and that it also had a short exposure through derivative financial instruments with expected financial settlement referenced to 34,648,051 common shares of the Company, equivalent to 13.5% of the total number of common shares of the Company.

Morgan Stanley declared that it does not intend to change the Company's control or administrative structure.

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

Rio de Janeiro, January 23, 2018.

BRASIL BROKERS PARTICIPAÇÕES S.A.