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Brazil: BM&FBOVESPA Exchange news and events March 2010

SunGard Global Trading authorized as DMA provider

BM&FBOVESPA has authorized SunGard Global Trading to act as a provider of direct market access (DMA) for the BM&F segment (derivatives markets). SunGard offer brokerage houses and its clients an order routing system that allows direct trading of financial and agricultural derivatives traded at the Exchange. BVMF is also working with SunGard to develop a back-office solution for North American clients that trade agricultural and financial derivatives in Brazil.

Voluntary carbon credit market auction

BM&FBOVESPA will hold on 08 April 2010, a voluntary carbon credit market auction. A total amount of 180,000 voluntary carbon units from projects managed by the Social Carbon Company will be auctioned. The auction will be held in three sessions, with a lot traded per session. The initial bidding prices will be indicated by lots that vary in accordance to the vintages and are priced at BRL 10.00 to BRL 12.00 per unit. The first transaction will occur at 1:00 p.m. (Brazil Time) and will be carried out by BM&FBOVESPA’s Carbon Credit Trading System.

White paper on post-trade infra-structure

The Exchange divulged, on March 11th, a white paper entitled “BM&FBOVESPA’s Post-Trade Infra-Structure – Integration Challenges and Opportunities”. The document aims to stimulate debate among market participants, regulatory agents, and others interested in the integration of post-trade activities and systems (netting, settlement, central counterpart, and central depository). BVMF expects the participants to contribute to the consolidation of the path to be adopted in relation to integration opportunities. The white paper can be found at www.bmfbovespa.com.br, in Notices.

BM&FBOVESPA establishes new historic record in contracts traded and in ID futures

BM&FBOVESPA established on 18 March 2010 a new historic record in the total number of contracts traded in the derivatives segment, with 10,157,779 contracts. The previous record of 5,716,789 contracts was set on 17 March 2010. Trading of ID futures contracts also registered a historic record on 18 March 2010, reaching a mark of 6,093,795 contracts. The previous record of 4,544,750 contracts was also set on 17 March.

UN´s Principles for Responsible Investment

On March the 3rd, BM&FBOVESPA formalized its adherence to the Principles for Responsible Investment (PRI), a United Nations initiative developed by financial markets to promote responsible investment. The document was signed during the first international PRI meeting held in Brazil. BM&FBOVESPA intends to set an example for other investors to adhere to the principals and also stimulate listed companies to report their socio-environmental initiatives to the market.

BM&FBOVESPA announces earnings for fourth quarter of 2009

Net income of R$220.2 million increased 8.8% year-on-year, whereas adjusted net income of R$315.3 million. 4Q09 net revenues of R$424.8 million increased 19.5% from the same quarter one year ago (pro forma). In a comparison of the twelve months to December 2009, net revenues dropped 6.2% to R$1,502.5 million. 4Q09 operating expenses reached R$ 160.4 million, a 25.2% increase from 4Q081 (pro forma) and a 21.0% increase from 3Q09’s. In 2009, recurring expenses reached R$446.7 million, a 12.9% drop from 2008 (pro forma), as adjusted by expenses related to employee compensation in 1Q09 (R$ 18 million) and in line with the target of R$450.0 million for 2009. EBITDA totaled R$276.4 million for the fourth quarter, up 17.3% from 4Q08 (pro forma). Click here for full earnings release.

BM&FBOVESPA begins trading three new ETFs

As of 23 February 2010, BM&FBOVESPA began trading three new Exchange Traded Funds (ETFs): iShares Brazil Index IBrX-100 (BRAX11); iShares BM&FBOVESPA Consumption Index (CSMO11); and iShares BM&FBOVESPA Real Estate Index (MOBI11). The new ETFs are managed by BlackRock Brazil. The Exchange also offers four other ETFs, which track the Ibovespa, Small Cap, MidLarge Cap, and IBrX-50 indices. Click here for further information on BM&FBOVESPA’s ETFs.

Exchange’s new communication interface with Mega Bolsa

As of April 20, 2010, the Mega Direct, a new electronic communication interface, will become the only form of access for all automatic DMA connections to the Mega Bolsa, BVMF equities segment trading platform. The tool enables the insertion, modification, and cancelation of offers placed on the Mega Bolsa. The new interface performs up to tenfold faster than the current system.

Exchange’s meeting in São Paulo

BVMF hosted the Ibero-American Federation of Exchanges meeting in São Paulo on March 19. The objective of the event was to bring together member exchanges from Latin America, Portugal, and Spain to debate the latest market trends of the region. The themes discussed were the recent regional integration initiatives; regulation; and the development of the derivatives market in Latin America. The meeting also featured a presentation by BVMF on its current strategic partnerships with CME Group and Nasdaq OMX.

Carbon Efficient Index

BM&FBOVESPA will receive until March 31st comments and suggestions to improve the development of the calculation methodology of the new Carbon Efficient Index (ICO2). The creation of the new index was announced on December 15th, 2009, by the Exchange and the Brazilian Development Bank (BNDES), during the 15th United Nations Climate Change Conference (COP15), in Copenhagen.

Volumes and trades by Direct Market Access (DMA)

In February, derivatives market segment registered a total of 12,537,023 contracts traded via DMA*, with 1,485,032 trades carried out through the GTS trading platform. In January, the total was 9,917,768 contracts traded in 1,203,321 trades. In February, trading via DMA (including all DMA modalities) registered increases both in number of trades and contracts traded, establishing the following records: (1) a daily average of 696,501 contracts traded, compared to the previous record of 497,049 in October 2009; (2) the daily average of orders routed via the CME Globex – BM&FBOVESPA GTS reached 176,216 contracts, compared to the prior mark of 154,600 in October 2009.

Traditional DMA – 5,807,581 contracts traded, in 505,698 trades, in comparison to 4,590,025 contracts traded and 446,674 trades;

Via DMA Provider – 3,200,086 contracts traded, in 75,421 trades, in comparison to 2,723,958 contracts traded and 61,019 trades;

DMA via order routing with Globex (CME Group’s electronic trading platform) – 3,171,892 contracts traded, in 816,205 trades, in comparison to 2,284,904 contracts and 618,746 trades;

DMA via co-location – 357,464 contracts traded, in 87,708 trades, in comparison to 318,881 contracts traded, in 76,882 trades.

BM&FBOVESPA market performance – February 2010

BM&F Segment

Derivatives markets in the BM&F segment totaled 39,306,238 contracts and BRL 2.47 trillion in volume in February. That compares to 36,217,359 contracts and a volume of BRL 2.65 trillion in January. The daily average of contracts traded in the derivatives markets set a new record in February, with 2,183,679 contracts, in contrast to the previous record of 2,172,046 in March 2008.

Bovespa Segment

In February, equity markets (Bovespa segment) reached a total volume of BRL 118.06 billion, in 7,355,993 trades, with daily averages of BRL 6.55 billion and 408,666 trades, respectively. In January, total volume reached BRL 129.10 billion, 8,051,640 trades, with daily averages of BRL 6.79 billion and 423,771 trades, respectively.

Source: BM&FBOVESPA, 26.03.2010

Filed under: BM&FBOVESPA, Brazil, Chile, Colombia, Exchanges, Latin America, Mexico, News, Peru, Risk Management, Trading Technology, , , , , , , , , , , , , , , ,

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