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BM&FBOVESPA announces 2008 Market Performance

BM&FBOVESPA’s equities and fixed-income markets traded BRL1.37 trillion and registered an average daily financial volume of BRL5.52 billion in 2008, up 14.7% and 12.9% respectively over 2007. The total number of trades increased by 62.9% to 61 million in 2008, and the daily average number of trades rose to 245,071which was an increase of 60.3% over the previous year. Investors created more than 800 investment clubs in 2008, while the number of individual investors exceeded 500,000 and the average number of investors with orders placed in the Home Broker system reached almost 200,000.

Derivatives (including financial and agribusiness) traded 391.6 million contracts in 2008, down 8.15% from the 426.4 million contracts traded in 2007, and the financial trading volume totaled BRL28 trillion, down 13.43% from the BRL32.4 trillion registered in the previous year.

To obtain further information:

Equities and Fixed-Income Markets

Volumes and transactions
The total financial volume in the equities and fixed-income markets reached 1.4 trillion in 2008, up 14.7% from the BRL1.2 trillion registered in 2007. The average daily financial volume increased from BRL4.9 billion to BRL5.5 billion in 2008, representing a 12.9% increase in comparison to the previous year. The number of trades totaled 61 million for the year, up 62.9% from the 37.4 million trades registered the previous year. The average daily number of trades reached 245,071 in 2008, up 60.3% from the 152,872 trades registered in 2007.

In December, the equities and fixed-income markets reached a total financial volume of BRL76.9 billion, with a total number of 5.1 million trades. The average daily financial volume was BRL3.8 billion with an average of 255,568 trades per day. In the previous month, the total financial volume was BRL71.7 billion, reaching a total number of 5.5 million trades, with an average daily financial volume of BRL3.7 billion and an average number of 291,890 trades per day.

The stocks with the highest financial volumes in December were Petrobras PN, with BRL12.9 billion; Vale R Doce PNA, with BRL6.9 billion; BM&FBOVESPA ON, with BRL2.4 billion; Itaubanco PN, with BRL2.2 billion; and Bradesco PN, with BRL2.1 billion.

Indexes
The Ibovespa ended 2008 down 41.2% at 37,550 points.

The best performing stocks were Nossa Caixa ON (+200.59%); Brasil T PAR ON (+31.33%); Trans Paulista PN (+20.74%); Natura ON (+18.03%) and Telesp PN (+11.99%).

The poorest performing stocks were Rossi Resid ON (-83.20%); Aracruz PNB (-80.16%); Gol PN (-77.20%); BM&FBOVESPA ON (-72.81%); and Gafisa ON (-68.19%).

In addition to the Ibovespa, the following indexes ended lower in 2008: ITEL (-16.4% at 1,022 points); IEE (-11.6% at 15,291 points); IGC (-45.6% at 3,697 points); ITAG (-44.9% at 4,765 points); ISE (-41% at 1,185 points); INDX (-46.7% at 5,306 points); IBrX-50 (-43.1% at 5,546 points); IBrX-100 (-41.7% at 12,539 points); IVBX (-36.9% at 3,444 points); Small Cap (-50.7% at 493 points); MidLarge Cap (-43.4% at 566 points); ICON (-35.2% at 697 points) and IMOB (-69.3% at 307 points).

Market Capitalization
The total market capitalization of the 392 companies listed on the BM&FBOVESPA was BRL1.37 trillion at the end of 2008, down from BRL2.47 trillion for the 404 companies listed at the end of 2007.

Special Corporate Governance Levels
The 160 companies that were part of the special corporate governance levels at the end of 2008 represented 60.37% of the total market capitalization, 64.47% of the total financial volume, and 73.32% of the total number of trades in the BM&FBOVESPA spot market.

Market Participation
The spot market accounted for 89.7% of the total financial volume in 2008, followed by the options market, with 3.3%, and by the forward market, with 3.2%. In 2008, the ten most traded stocks, which accounted for 53.15% of the total financial volume in the spot market, compared to 45.42% in the previous year, were Petrobras PN; Vale do Rio Doce PNA; Bradesco PN; Petrobras ON; Vale do Rio Doce ON; Usiminas PNA; Sid. Nacional ON ; Itaubanco PN; Gerdau PN and Unibanco UNT.

The spot market accounted for 94.3% of total financial volume in December, followed by the options market, with 4.0%, and by the forward market, with 1.7%. The after market traded BRL739.5 million, with 67,495 trades, compared to BRL660.8 million and 63,764 transactions in November.

Fixed Income
The fixed income market’s financial volume, including trades on Bovespa Fix and Soma Fix, totaled BRL1.3 billion in 2008, exceeding the BRL931.3 million registered in 2007. The financial volume of Real Estate Receivables Certificates (CRIs) totaled BRL217.7 million, compared to BRL176.1 million in the previous year. The financial volume of Credit Receivables Investment Funds (FIDCs) totaled BRL938.0 million, compared to BRL523.8 million in 2007. The financial volume of debentures totaled BRL149.1 million, compared to BRL231.4 million in 2007.

Altogether, 55 new securities were listed in 2008: 23 debentures, 29 FIDCs and three CRIs. Among these securities, two of them were listed in December: one debenture and one CRI. The financial volume in both markets, in December, totaled BRL74.6 million, with BRL62.2 million related to FIDCs, BRL8.3 million to debentures and BRL4 million to CRIs.

Derivatives Markets

Financial Derivatives
ID Interest futures totaled 166.9 million contracts in 2008, compared to 221.6 million in 2007. In December, 9.4 million contracts were traded, compared to 6.9 million in November.

US Dollar Futures ended the year with 87.4 million contracts, up from the 84.7 million contracts traded in 2007. In December, 4.06 million contracts were traded, compared to 4.94 million in the previous month.

Ibovespa futures traded 20.2 million contracts in 2008, compared to 26.5 million in 2007. In December, 1.1 million contracts were traded, compared to 1.4 million in November.

Open interest contracts ended the last trading day of December with 18.2 million transactions, compared to 18.4 million in November.

Agribusiness Derivatives
The BM&FBOVESPA’s agribusiness derivatives markets totaled 3.2 million contracts in 2008, up 47.7% from the 2.2 million contracts in 2007. The financial volume in the agribusiness derivatives markets exceeded BRL81 billion, a 75% growth over 2007. The live cattle market, which became the largest BM&FBOVESPA agribusiness derivatives market, accounting for 52% of the total financial volume, traded 1.7 million contracts in 2008, compared to 940,000 contracts traded in the previous year. Arabica coffee totaled 838,000 contracts, compared to 808,000 in 2007. Soybeans stood at 292,000 contracts, compared to 196,000 in the previous year; and corn totaled 407,000 contracts, compared to 208,000 in 2007.

The BM&FBOVESPA’s agribusiness derivative markets totaled 179,200 contracts in December, compared to 166,000 in November. The live cattle market registered 97,400 contracts, compared to 89,000 in the previous month. Arabica coffee totaled 35,600 contracts, compared to 49,900 in November. Soybeans registered 18,300 contracts, compared 13,300; and corn totaled 24,200 contracts, compared to 11,900.

Agribusiness markets totaled 69,500 open interest contracts at the end of the last trading day of December. In November, open interest contracts totaled 67,600.

Mini contracts
In 2008, 10.1 million “mini” derivatives contracts were traded, through WebTrading, compared to 14.1 million in 2007. In December 709,800 mini derivatives contracts were traded, compared to 831,500 in November.

The mini Ibovespa futures market traded 9.9 million contracts in 2008, compared to 10.7 million in 2007. In December, the Ibovespa mini futures market traded 689,400 contracts, compared to 819,700 in the previous month.

In 2008, 147,400 mini dollar futures contracts were traded, compared to 3.5 million in 2007. In December, 18,300 contracts were traded, compared to 11,300 in November.

Mini futures contracts ended December with 10,700 open interest contracts, compared to 19,600 in November.

Spot Gold
The Gold ( 250 grams ) spot market traded 12,600 contracts in 2008, compared to 9,100 in 2007. In December, 595 contracts were traded, compared to 743 in November. The financial volume for the Gold spot market totaled BRL8.9 million in December, compared to BRL10.3 million in the previous month.

Investors Participation

Equities
Foreign investors topped the financial volume in the equities market in 2008, accounting for 35.5% of the total volume, compared to 34.5% in 2007. Institutional investors took second place, with 27.1%, compared to 29.8% in 2007; individual investors accounted for 26.7%, up from 23.0% in 2007; financial institutions accounted for 7.8%, compared to 10.4% in 2007; companies accounted for 2.80%, compared to 2.2%; and other types of investors accounted for 0.1%, compared to 0.2% in 2007.

In December, foreign investor participation accounted for 36.15% of the total financial volume in the equities market, compared to 33.51% in November. Individual investors took second place, with 29.50%, compared to 34.03% in November; institutional investors accounted for 23.82%, up from 23.78% in November; financial institutions accounted for 6.15%, compared to 5.37% in November; companies accounted for 4.20%, compared to 3.11% in November; and other types of investors accounted for 0.17%, compared to 0.19% in November.

Foreign Investment
As of the end of December, foreign investment flows into the Brazilian equity markets in 2008 were negative at BRL4,856,235,875.50, a result of BRL19,773,442,885.50 in shares bought by foreign investors in stock offerings and BRL24,629,678,761.00 sold by these investors in the BM&FBOVESPA

In December, foreign investor trading on BM&FBOVESPA fell to the negative balance of BRL439,252,157.00, a result of the selling of BRL27,934,624,451.00 and the purchase of BRL27,495,372,294.00 in stocks.

Foreign investor participation in stock offerings, including initial public offerings, represented 48.1% of the BRL41,088,182,386.20 in transactions which had announcements of the closing of public offering of stock published by January 5, 2009, as shown in a table that is available in the Press and Media section of the BM&FBOVESPA website.

Derivatives
Financial investors led transactions in the derivatives markets, responsible for 48.40% of the contracts traded in December, compared to 44.64% in November; institutional investors accounted for 20.19%, compared to 21.69%; foreign investors, for 19.84%, compared to 20.57%, individual investors accounted for 7.79%, compared to 10.24%; and non-financial investors accounted for 3.78%, compared to 2.86%.

Individual Investors
Equities – Individual Investors
BM&FBOVESPA had a total of 536,483 individual investor accounts at the end of 2008, compared to 456,557 in the previous year.

Equities – Investment Clubs
Investors created 21 investment clubs in December, which brought the number of new registrations to 853 in 2008, compared to 683 in 2007. All told, the Exchange ended the year of 2008 with 2,778 investment clubs. Their net worth totaled BRL8.3 billion and the number of participants stood at 149,400 as of November, the latest available figure.

Home Broker
Home Broker transactions in 2008 were as follows: an average monthly financial volume of BRL27.5 billion, up from BRL15.2 billion in 2007; an average monthly number of 2.9 billion transactions, up from 1.7 billion in 2007; an average monthly number of 199,200 investors, up from 135,600 in 2007. Considering the monthly average, the Home Broker participation accounted for 12.9% of the total financial volume in the equities market, up from the 8.44% registered in 2007.

Home Broker transactions in December were as follows: a total financial volume of BRL24.31 billion, compared to BRL25.74 billion in November; an average daily financial volume of BRL1.21 billion, compared to BRL1.35 billion in November; an average amount per transaction of BRL8,900 compared to BRL9,000 in November; a total number 2.9 million transactions, compared to 3.2 million in November; and a daily average of 146,800 transactions, compared to 170,100 in November.

Home broker participation in the stock market’s financial volume in December was 15.8%, compared to 18.0% in November, while in terms of the total number of transactions that participation reached 28.7%, compared to 29.1%. The number of investors placing orders stood at 156,036, compared to 168,467 in November. Sixty-one brokerage firms offered the service in December, one more than in the previous month

Derivatives
In December, the derivatives clearinghouse registration system had 81,003 individual taxpayer registry numbers (CPFs).

Source:BM&FBOVESPA 15.01.200

Filed under: BM&FBOVESPA, Brazil, Exchanges, News, , , , , , , ,

Latin American brokers join Thomson Reuters order routing network

Thomson Reuters today announced that four key brokers from Brazil and Mexico have joined its order routing network, expanding the reach of its exchange traded instruments offering into the two largest financial markets in Latin America.

This move forms part of Thomson Reuters aim to expand its desktop and transaction capabilities across Latin America.

Financial market professionals can now route equities orders via Reuters Trading for Exchanges (RTEx) to Alpes and Ativa for Brazil and Casa de Bolsa Finamex and Grupo Bursátil Mexicano for Mexico.

Any user connected to the Thomson Reuters order routing network, both in Latin America and outside the region, can now access liquidity from BMFBovespa and Mexico Stock Exchange via these brokers.

Reuters Trading for Exchanges in Latin America is available to users of Reuters 3000 Xtra and Reuters Trader Latin America. It provides access to the joint global community of Tradeweb Routing Network and Reuters Order Routing Network, comprising over 1,000 participants worldwide and processing in excess if 1.5 billion shares per day.

Ricardo Diniz, Managing Director for Thomson Reuters in Latin America, said, ” Brazil and Mexico are the most sophisticated Latin American financial markets, using advanced technology and trading the largest volumes. Thomson Reuters is pleased to expand the reach of its Reuters Trading for Exchanges offering with the support of these four leading brokers. Thomson Reuters plans to continue to support this growing community by adding new asset classes with an initial focus on the increasingly automated derivatives markets.”

Source: Reuters Thomson, 07.01.2009

Filed under: BM&FBOVESPA, BMV - Mexico, Brazil, Chile, Colombia, Data Vendor, Exchanges, Latin America, Mexico, News, Trading Technology, , , , , , , , , , , , , , , ,

Brazil:BM&FBOVESPA 3Q 2008 Earnings Results

BM&FBOVESPA S.A. reports its earnings for the ninemonth period ended September 30, 2008. Adjusted net income reached R$764.9 million, a 44.8% rise over the nine months to September 2007, with an EPS of R$ 0.375. bmf-bovespa-press-release-3q08_english-version

Source:BM&FBOVESPA 12.11.2008

Filed under: BM&FBOVESPA, Brazil, Exchanges, News, , , , , , , , ,

BM&F BOVESPA Contracts NYSE Euronext To Upgrade Its Equity Electronic Trading Platform

NYSE Euronext (NYX) and BM&F BOVESPA announced that NYSE Euronext Advanced Trading Solutions, the commercial technology unit of NYSE Euronext, has been contracted to develop and implement an upgrade of the electronic cash equity and options trading platforms. The NSC platform, which offers world-class latency and an enhanced feature set for market participants, is expected to go live in the first quarter of 2009.

“BM&F BOVESPA is a recognized leader in trading a range of products with customers all over the world,” said Sam Johnson, co-Head, NYSE Euronext Advanced Trading Solutions. “NYSE Euronext Advanced Trading Solutions is proud to be working with BM&F BOVESPA to deploy our latest version of the NSC trading platform that, upon installation, will immediately offer their customers industry-leading micro-second performance and reliability.”

“As we continue to experience strong customer demand and volume growth, we need a technology partner with an exceptional track-record and proven commitment to delivering top-quality technology across asset classes,” said Cicero Vieira, Chief Operating Officer, BM&F BOVESPA. “At BM&F BOVESPA, we are dedicated to ensuring fast, efficient and reliable access to Brazilian markets and we are pleased to continue to meet that objective through our partnership with NYSE Euronext Advanced Trading Solutions.”

BM&F BOVESPA has been utilizing NYSE Euronext Advanced Trading Solutions’ NSC suite to run their trading platform, MEGA BOLSA, since 1997. The new version of NSC, which is also running successfully on Euronext Paris, is the latest upgrade from the previous version of the platform currently running the BM&F BOVESPA cash equity and options markets.

Source: NYSE Eurnext 03.11.08

Filed under: BM&FBOVESPA, Brazil, Exchanges, News, Trading Technology, , , , , , , , , ,

TT links to Brazilian Stock, Mercantile & Futures Exchange

Trading Technologies International (TT) today announced that TT has linked its X_Trader derivatives trading platform to Latin America’s largest futures exchange, BM&FBOVESPA, via the CME Group’s Globex platform.

The new link to BM&FBOVESPA allows X_TRADER users to trade the main derivatives contracts listed on the exchange. These products include:

  • Interest Rates — One-Day Interbank Deposit, Long Term Interbank Deposit and ID x US Dollar Swap with Reset contracts
  • Equity Index Futures — Ibovespa, Mini-Ibovespa, Brazil Index-50, General Market Price Index and Mini General Market Price Index (pending regulatory approval)
  • Currency — USD Futures, Mini-USD and Euro Futures
  • Agricultural — Arabica Coffee, Robusta, Cotton, Real-Denominated Corn, Soybeans, Crystal Sugar, Feeder Cattle, USD Denominated Ethanol and Anhydrous Fuel Alcohol
  • Sovereign Debt Instrument (Bonds) — A-Bond Futures, Three-, Five- and Seven-Year Brazilian Sovereign Credit Default Swaps and Ten-Year US Treasury Notes
  • Metals — Gold Futures and Spot contracts

“By means of this connection, global investors can trade a complete and diversified range of Brazilian products and hedge their risks across the two Exchanges. The GTS order book will be transmitted in real time to the CME Globex users, and liquidity will be increased,” says Cicero Augusto Vieira Neto, Chief Operating Officer of the BM&FBOVESPA.

“Trading Technologies’ customers have expressed a strong desire to access the Latin American markets, so we are very pleased to be working with BM&FBOVESPA. Our BM&FBOVESPA connection has been thoroughly tested and is available to our customers,” said Harris Brumfield, CEO of TT.

TT clients have the option to host BM&FBOVESPA gateways internally or outsource connectivity to TTNET(TM), TT’s fully managed hosting solution.

BM&FBOVESPA is the world’s third largest exchange by market capitalization. The Exchange ranked as the world’s seventh largest derivatives exchange in 2007, with total volume of 426,363,492 contracts. This represented an increase of more than 50% over 2006 volume. The BM&FBOVESPA’s One-day Interbank Deposit futures contract ranked fifth among all exchange traded derivatives contracts globally in 2007.

BM&FBOVESPA and CME Group signed an agreement earlier this year that incorporates cross-investment, order routing arrangements and future business opportunities. As part of this agreement, CME Globex customers will have access to the order book of BM&FBOVESPA’s Global Trading System (GTS) platform via the Globex platform.

Source: TT International 06.10.2008

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Brazil: BM&F BOVESPA Global Order Routing through GLOBEX

CME Group, the world’s largest and most diverse derivatives exchange, and BM&FBOVESPA, the largest exchange in Latin America, have announced that the order routing of BM&F derivatives products on CME Globex® is scheduled to begin September 30.

The order routing linkage will enable customers in more than 80 countries using the CME Globex electronic trading platform to now trade BM&FBOVESPA products directly, including futures and options on One Day Inter-Bank Deposits, the Bovespa Stock Index, which is pending regulatory approval, and commodities such as Arabica coffee, live cattle and corn.

Starting in the fourth quarter of 2008, BM&FBOVESPA customers will have the ability to trade CME Group products directly through their BM&FBOVESPA connections, including CME Group futures and options on interest rates, equity indexes, foreign exchange, commodities and energy and metals products.

“Our agreement with BM&FBOVESPA is another example of CME Group’s commitment to expand our global offerings and services to our customers, and we want to thank the customers and employees who have worked so hard in recent weeks to make this a reality,” said CME Group Executive Chairman Terry Duffy. “As one of the world’s leading financial exchanges, CME Group will continue to offer products to investors worldwide using the most up-to-date technology that add customer and shareholder value.”

“The CME Group and BM&FBOVESPA cross-equity investment and strategic alliance is the first ever arrangement between a major global exchange and the premier exchange in Latin America,” said Craig Donohue, CME Group Chief Executive Officer and a member of the BM&FBOVESPA board of directors. “With Brazil’s position as the world’s tenth largest economy and with BM&FBOVESPA offering some of the most successful and liquid Latin American futures and options products, we are pleased to expand our customers’ access to these important markets. We also look forward to the establishing the next phase of our strategic partnership when CME Group products will be directly accessible to customers trading on the BM&FBOVESPA platform.”

“As the largest Latin American economy, Brazil has a sophisticated financial system which uses state-of-the art technology, speeding up transactions and providing them with security by employing efficient regulatory, self-regulatory and risk control systems. The Brazilian financial and capital market has been strongly developing in the last few years. Today it offers a variety of highly complex products which attract both domestic and foreign investors. This is evidenced by the impressive capital inflows that were registered during the last IPOs. All of this stresses the high potential that an international financial marketplace has to flourish in Brazil,” said Gilberto Mifano, Chairman of the BM&FBOVESPA Board of Directors.

“The start of the order routing with the CME Group initiates the global expansion of BM&FBOVESPA and represents the complete electronification of our markets, including broader global distribution of our equities products such as stocks, options, forwards and ETFs, on a parallel track with our futures products. The Brazilian market has matured, counting on the most up-to-date technology and efficient tools to meet demands. With this partnership, BM&FBOVESPA, which is the world’s third largest exchange in market capitalization, hopes to expedite the construction of a large financial and commodity market in South America, and it certainly has the means to become the liquidity hub for this market,” explained Edemir Pinto, BM&FBOVESPA Chief Executive Officer. “I would like also to thank the IT teams at CME Group and BM&FBOVESPA for their commitment with the deadlines.”

Source: CME / BM&F – BOVESAP 29.09.2008

Filed under: News, , , , , , , , , , , , , ,

City Of São Paulo Sells Carbon Credits For €13.689 Million At The 2nd Auction Held At BM&FBOVESPA

The second auction of Certified Emissions Reductions (CERs), held by the São Paulo Municipal Government, took place today, September 25th at BM&FBOVESPA. A total amount of 713,000 CERs were auctioned in a single lot under the terms of the Clean Development Mechanism – 454,343 CERs from the Bandeirantes landfill Energy Project and 258,657 CERs from São João landfill Energy Project.

Mercuria Energy Trading, from Geneva, bought the lot at €19.20 per metric ton of carbon. The São Paulo Municipal Government received an equivalent of €13.689 million for the carbon credits (approximately BRL37 million), representing a premium of 35.21% in comparison to the minimum bid of €14.20 per ton. Ten institutions were authorized to take part in the auction – eight of them placing bids.

The Mayor of São Paulo, Gilbert Kassab, and BM&FBOVESPA’s Chairman, Gilberto Mifano, were present during the auction, which was held at the Exchange.

Source: BM&F BOVESPA 25.09.2008

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Bolsa De Brazil Wants To Create A Network With Neighbouring Markets

The BM & F Brazilian stock exchange Bovespa, has initiated contacts with Chile, Peru and Colombia with the aim of getting closer ties with its neighbours, enhance the attractiveness of Latin America and ensure flows of investments to the region. Representatives of the exchange will meet in Chile with local stock exchanges and regulators in order to facilitate transactions between the two stock markets.

Paulo Oliveira Junior, Vice President and Director of New Business Development of BM & F Bovespa, said that there was “A great interest in keeping the market liquidity here in our continent, in creating new products, developing bilateral relations among countries to prevent a flight of capital or investment to other places.” He added that the best way to do this is to strengthen local markets.

“Our idea is not acquisitions but cooperation. If it is necessary to invest in new trading platforms, product development or invest in people, we are prepared to meet and work together,” said Oliveira. The first step is to know what local markets can buy in Brazil. How can, for example, a Brazilian investor easily invest in Chile and vice versa.” “You then seek to create a network with the exchanges in Chile, Peru and Colombia, by using cooperation, partnership and not by creating a single entity to manage the markets in the region.”

Next the Brazilian market executives will visit the exchanges in Peru and Colombia. BM & F Bovespa already has close ties with exchanges in Argentina and Mexico.

Source: BOVESPA 29.08.08

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Asset Managers slam Brazil’s takeover rules

Small investors in Brazilian companies are left too vulnerable by the South American nation’s regulatory system, fund managers have complained.

The group of money managers and pension experts are now calling on the government for stricter takeover guidelines, Reuters reports.

Recently-announced proposals from pulp producer Votorantim Celulose e Papel (VCP) to take over smaller rival Aracruz Celulose have sparked the ire of firms including F&C Asset Management, TIAA-CREF and Legg-Mason.

One of the group’s key complaints is that such acquisitions make the Brazilian market less appealing for overseas investors who wish to buy minority stakes in companies.

Urban Larson at F&C Asset explained: “We are worried about the potential effect this could have in the Brazilian market as a whole since it does affect investors’ perception as to how minority shareholders will be treated.”

Commenting on the situation Luiz Leonardo Cantidiano, a lawyer for VCP, said: “Brazilian regulations are good because they are clear.

“If investors want more rights, they should look for a market that guarantees that.”

Source: Bobsguide, 29.08.2008

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Outlook of Brazilian Economy and Capital Market July 2008

For an outlook of the Brazilian economy and capital market in July 2008 click here.

Source: BOVESPA, August 2008

BM&FBOVESPA and CME will announce Order Routing System in London

The CME Group and BM&FBOVESPA will hold a seminar on September 23, in London, about their order routing system for European investors, trading member firms (brokerage houses), FCMs (clearing members) and technology companies. This seminar will be similar the ones conducted last June, in Chicago and New York, and it will provide European brokers and customers with information about how the order routing system between the two exchanges will work.

Venue: The Brewer’s Hall – Aldermanbury Square, London EC2V 7HR

Filed under: News, , , , , , , , , ,

BM&F BOVESPA Celebrates 100 Companies Listed On The Novo Mercado – Exchange Announces New projects

BM&FBOVESPA prepares to launch a listing segment for BDRs (Brazilian Depositary Receipts). The objective behind this new project is to allow foreign companies to benefit from the same structure created for the Novo Mercado segment. The announcement was made on Friday, July 25, by the Exchange’s CEO, Mr. Edemir Pinto, during the event to commemorate the 100 companies listed on the Novo Mercado segment. “The idea of launching BDRs is part of our project of broadening the Exchange’s markets in Latin America. We are aiming at all Latin American companies that have the possibility of being listed on the Brazilian market,” stated Mr. Pinto, who also announced the creation of the BM&FBOVESPA in the countryside project. “The new Exchange is a place to think about the future both by investing in stocks and by hedging your agricultural production,” said the CEO, referring to the new program’s objectives.

The president of the Brazilian Securities and Exchange Commission (CVM), Ms. Maria Helena Santana, classified the Novo Mercado segment as a Brazilian asset. “Novo Mercado is probably the institutional factor that most contributes to market development available in our country today,” said Ms. Santana. BM&FBOVESPA’s Chairman, Mr. Gilberto Mifano, highlighted the importance of corporate governance, qualifying the segment as a defining milestone in the Brazilian capital market and as a model recognized throughout the world. “Brazil wins with this model. The Novo Mercado segment is the way modern Brazil resolves its financing needs.

This can be witnessed by the fact that our vigorous economy is bravely resisting the economic recession taking place in developed countries,” assessed Mr. Mifano. According to Mr. Mifano, the companies listed on the Novo Mercado segment, together, have a market value of BRL445 billion, almost 19% of BOVESPA’s total capitalization. “The IPOs have captured a total of BRL96.5 billion and have attracted thousands of new individual investors to the market.”

For full article click here

Filed under: BM&FBOVESPA, Brazil, Exchanges, Latin America, News, , , , , , ,

UBS launches direct market access to Brazil

UBS is among the first broker-dealers to offer non-Brazilian clients direct electronic equities trading and execution in this major market.

Direct Market Access provides clients with greater control over their orders, faster execution, lower cost of trading, and greater transparency. DMA enables UBS clients to quickly and efficiently send their electronic orders directly to the exchange, without passing them through an intermediary. Recent market regulation enacted in Brazil allows for non-domestic investors access to direct electronic trading on Bovespa (Bolsa de Valores de Sao Paulo), a Sao Paulo-based stock exchange. Bovespa is the second-largest stock exchange in the Americas, and the third largest in the world.

Mario Campos, Head of Latin America Sales & Trading, said, “We have a longstanding commitment to providing clients with seamless, direct, electronic access to the major markets all over the world. We are pleased to be one of the first brokers to offer global clients with DMA in Brazil. DMA gives our clients unmatched, efficient global access to liquidity.”

Before now, a non-Brazilian client wishing to buy or sell a stock trading on Bovespa had to send the order to a broker-dealer desk based in Brazil, which would then enter the order into a system connected to the exchange. For full article click here

Source: FINEXTRA 29.07.2008

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Colombia Stock Exchange strives to be a Latin American Alternative

The Colombia Stock Exchange (BVC), the country’s sole marketplace for equities and fixed income, in September will ramp up its derivatives offerings with a new trading platform from Nasdaq OMX Group.

The move is part of the exchange’s efforts to become an alternative to the recently formed BM&F Bovespa and the Mexican Stock Exchange-Latin America’s largest market centers-for international investors. “We are building momentum now,” says Juan Pablo Cordoba, chief executive of BVC, which was created through a 2001 merger of the Bogota, Cali and Medellin exchanges. “We are developing our business to meet international standards and to be more competitive.”

Source: Securitiesindustry.com 29.07.2008

Filed under: Colombia, Exchanges, FIX Connectivity, News, Trading Technology, , , , , , , ,

Mexican and Colombian Exchanges Mull Joint Trading

The Colombian and Mexican stock exchanges are negotiating an agreement to list shares from both countries on both exchanges as soon as 2009, the Mexican Stock Exchange operator’s Chairman Guillermo Prieto said. The Mexican stock Exchange operator, Bolsa Mexicana de Valores SAB is not only negotiating with the Bolsa de Valores de Colombia SA but also is discussing similar deals with Peru’s Bolsa de Valores de Lima SA and Brazil’s Bovespa Holding SA, Prieto said. He said the crossed trading will boost the liquidity of the different shares.

Source: FIF International News Stories – Week of 07/21/2008

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Japan’s DAIWA ties up with Brazil’s ITAU Securities

Banco Itaú and Japan’s Daiwa Securities have signed an MOU to cooperate in the capital and financial markets in Japan, Brazil and Latin America.The partnership will tap different businesses such as asset management, brokerage, research and investment banking, the Brazilian bank said in a press release.

Through the agreement, Daiwa will commercialize Itaú’s products in the Japanese markets and could also access the Brazilian market through the bank.

Itaú said it would launch two mutual funds in the Japanese market in August to be distributed through Daiwa Securities, one focused on Latin American corporates and the other a fixed income Brazilian securities fund.

Daiwa Asset Management will manage the two funds.

Itaú’s brokerage arm Itaú Securities already operates in Hong Kong and Tokio and will open offices in Beijing and Singapore in the second half this year.

Source: Business News Americas, 17.07.2008 Full Article

Source: Reuters 17.07.2008 See full article

TOKYO, July 17 (Reuters) – Japan’s Daiwa Securities Group Inc (8601.T: Quote, Profile, Research, Stock Buzz) plans to tie up with Brazil’s Banco Itau (ITAU4.SA: Quote, Profile, Research, Stock Buzz) in asset management, investment banking and broking as part of its strategy to further expand outside the Japanese market.

Daiwa has been taking steps to build up its operations outside the Japanese market, where it still generates 90 percent of its sales. The prospects for growth in Japan are limited given a mature economy and shrinking population.

Daiwa’s focus has been on Asia. In the past month it has announced plans to raise its stake in Vietnam’s Saigon Securities SSI.HM, buy convertible bonds in Taiwan’s Neo Solar Power Corp and invest in a fund targeting Chinese companies.

But Brazil has also been on its radar because of its rapidly growing economy and the high level of interest among Daiwa’s Japanese clients in Brazilian stocks and bonds.

Daiwa signed a memorandum of understanding in May with Itau to form an alliance and has since been talking with Brazil’s second-biggest private-sector bank on the details, according to Daiwa spokesman Hiroharu Misawa.

As a first step in the alliance, Daiwa said it would launch a mutual fund investing in Brazilian bonds and another fund targeting regional shares. Itau will advise on what to put in the funds, while Daiwa will use its network to market them in Japan.

Other possible areas of cooperation include investment banking, stock broking, research and personnel exchanges.

Daiwa could, for example, work with Itau to advise on cross-border mergers involving Japanese and Brazilian companies or use the alliance to help the growing number of Japanese companies active in Brazil tap local markets for funds.

Toyota Motor Corp (7203.T: Quote, Profile, Research, Stock Buzz) announced this week that it would build a new plant in the country while Nippon Steel Corp (5401.T: Quote, Profile, Research, Stock Buzz), Japan’s top steelmaker, is considering buying more shares in Brazilian affiliate Usiminas (USIM5.SA: Quote, Profile, Research, Stock Buzz).

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