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Brazil: BM&FBOVESPA Exchange news and events February 2010

BM&FBOVESPA launches foreign exchange non-deliverable forward contract

BM&FBOVESPA has authorized, as of January 18, the registration of dollar, euro, yen, and cross-rate non-deliverable forward contracts in its OTC market.

Initially, only foreign exchange transactions established by the Brazilian Central Bank can be registered. As of March 1, BM&FBOVESPA will also authorize the registration of transactions with exchange rates calculated by the following information sources: U.S. Dollar/Euro parity exchange rate calculated and published by the European Central Bank; U.S Dollar/Euro exchange rate fixed by WMR/Reuters; Japanese Yen/U.S. Dollar parity exchange rate calculated and published by the Central Bank of Japan; and Japanese Yen/U.S. Dollar exchange rate fixed by WMR/Reuters.

Click here for further details regarding the contract.

BM&FBOVESPA appoints executive for its London operations

The Exchange announces the appointment of Cathryn Lyall as Director of BM&FBOVESPA (UK) Ltd, a wholly-owned subsidiary of BM&FBOVESPA. Ms. Lyall will be responsible for the set up and expansion of the new BM&FBOVESPA European office located in London, including all product and sales related activities in EMEA.

Ms. Lyall will also be responsible for establishing regulatory relationships, education and training programs, speaking opportunities, and developing marketing, and business development related activities targeted at potential customers in the region. She will report to Joao Lauro Amaral, head of International Business for BM&FBOVESPA.

Exchange hosts event to seal partnership between Brazil and the International Accounting Standards Board (IASB) on convergence to IFRS

BM&FBOVESPA hosted, on 28 January 2010, the signing of a Memorandum of Understanding between the International Accounting Standards Board (IASB), the Brazilian Federal Council of Accounting (CFC) and, the Brazilian Accounting Pronouncements Committee (CPC).

The partnership is an important step towards the insertion of Brazil in the international forum on the establishment and adoption of a set of accounting standards known as the IFRS (International Financial Reporting Standards).

Since only a handful of countries have signed memorandums with the IASB, such partnership demonstrates Brazil’s commitment towards global regulatory issues. The agreement’s objective is to expand the convergence to IFRS norms in Brazil and to also guarantee a greater participation of Brazilian companies in regulatory discussions.

Exchange registers record fourth quarter trading

The average daily financial volume traded at the Brazilian Securities, Commodities and Futures Exchange equity markets reached a record BRL 6.840 billion during the fourth quarter of 2009. The amount surpasses in 3.34% the previous record, of BRL 6.618 billion, set during the fourth quarter of 2007. It is also 31.19% greater than the average daily volume traded in the third quarter of 2009, of BRL 5.214 billion.

Due to this historic record, the average daily volume registered during the second semester of 2009 reached BRL 6.001 billion; 32% superior to the average daily volume of BRL 4.560 billion, registered in the first six months of last year. During the fourth quarter, foreign investor participation in the traded volume was 31.7%, followed by individual investors (29.1%), institutional investors (27.1%), financial institutions (9.8%), and others (0.06%).

BM&FBOVESPA is the third most important market in terms of IPO operations in 2009

The Brazilian Exchange was the backstage for US$ 12.5 billion in capital raised through IPOs operations in 2009, ranking it in 3rd place as the most important IPO market in the world, only behind the Hong Kong and Shanghai Exchanges.

The total capital raised by shares issues accounted for US$ 41.7 billion in 2009, placing BM&FBOVESPA among the top 10 global markets, according to the World Federation of Exchanges.

Exchange ranks as the second largest equity options market and the sixth largest derivatives market in the world

According to the Futures Industry Association, BM&FBOVESPA has the second largest equity options market in the world. It registered a total of 369 million contracts traded from January to September 2009. The ranking is calculated based on the number of single stock options contracts and/or cleared.

Also, according to the same institution, BM&FBOVESPA was the 6th largest exchange in the world in terms of number of futures and options contracts traded from January to September 2009. That period registered a total trading volume of 649,203,768 contracts, which represents an increase of 12.6% over the same period in 2008.

Exchange sets DMA trading records

On 28 January 2010, the Exchange set a new DMA trading record (derivatives segment), reaching 836,153 contracts traded. The previous record was 773,396 contracts traded (on 21/01/2010). DMA trading via order routing with CME Group also set a record, on the same date, reaching 52,053 trades. The previous record of 51,422 was set on 21/01/2010.

In December, Direct Market Access (DMA) trading of the derivatives market segment registered a total of 8,238,292 contracts traded via DMA*, with 998,834 trades carried out through the GTS trading platform. In November, the total was 8,350,565 contracts traded in 1,103,437 trades. The volumes registered by access modality in December in comparison to the previous month are as follows:

Traditional DMA – 3,546,606 contracts traded, in 385,040 trades, in comparison to 3,838,053 contracts traded and 444,987 trades;

DMA via order routing with CME Globex (CME Group’s electronic trading platform) – 2,144,247 contracts traded, in 506,991 trades, in comparison to 2,321,877 contracts and 557,088 trades.

Via DMA Provider – 2,277,446 contracts traded, in 57,677 trades, in comparison to 1,900,815 contracts traded and 43,486 trades;

DMA via co – location – 269,993 contracts traded, in 49,126 trades, in comparison to 289,820 contracts traded, in 57,876 trades.

BM&FBOVESPA 2009 market performance

BM&F segments
Derivatives markets in the BM&F segment (including financial and agricultural derivatives) totaled 373.41 million contracts and a financial volume of BRL 26.78 trillion in 2009, compared to 391.62 million contracts and BRL 28.01 trillion in financial volume in 2008. The daily average of contracts, in 2009, was 1,517,941, as opposed to 1,572,783 in 2008. Mini contracts traded reached 12.95 million in 2009, in contrast 10.08 million in 2008.

Bovespa Segments
The equity markets (Bovespa segment) reached a total volume of BRL 1.3 trillion in 2009, compared to BRL 1.37 trillion in 2008. The average daily financial volume was BRL 5.28 billion, in contrast to BRL 5.52 billion in the previous year. During 2009, 81.75 million trades were carried out, as opposed to 61.02 million in 2008. In 2009, the daily average of trades reached, 332,349, surpassing the average of 245,071 trades in 2008.

Exchange Holidays for 2010

For the list of Exchange Holidays for 2010, click here. There will be no trading activities in either of the equities market (Mega Bolsa), or the corporate fixed-income securities markets (Bovespa Fix and Soma Fix), or the derivatives market (GTS), and BM&FBOVESPA will be closed for business on these holidays.

Source: BM&FBOVESPA, 02.02.2010

Filed under: BM&FBOVESPA, Brazil, Energy & Environment, Exchanges, Latin America, News, Risk Management, Trading Technology, , , , , , , , , , , , , , , , , , ,

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