BM&FBOVESPA
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| BM&FBOVESPA S.A. (also BM&F Bovespa) | |
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| Founded | 2008 |
|---|---|
| Headquarters | São Paulo, Brazil |
| Key People | Edemir Pinto, CEO |
| Products | BOVESPA Index, Brazil Index 50 |
| Corporate Website | www.bmfbovespa.com.br |
| Releases | Company News |
Brazilian equities and derivatives exchange BM&FBOVESPA was formed in 2008 by the merger of two existing exchanges and is now Latin America's largest public securities-trading market, offering products from equities to spot commodities to interest-rate futures contracts. BM&F Bovespa also recently implemented a successful order routing agreement with CME Group and expanded its partnership with CME to develop a multi-asset class platform.
BM&FBovespa maintained its position as the world's sixth-largest derivatives exchange by contract volume in 2010, according to the annual Futures Industry Association's survey of the world's leading derivatives exchanges. [1] The report, published in March of 2011, states that the number of futures and options traded on BM&FBovespa increased by 54.5 percent from the previous year, to over 1.42 billion contracts.
BM&FBOVESPA is a member exchange of the World Federation of Exchanges.[2][3]
Background
BM&FBOVESPA was formed in 2008 by the union of two São Paulo-based securities exchanges - the São Paulo Stock Exchange (BOVESPA) and the Brazilian Mercantile and Futures Exchange (BM&F)- and ranks third among the world's leading securities exchanges by market cap.</ref>[4] It is also now the leading Latin American exchange and the second largest in the western hemisphere, surpassing NYSE Euronext and Nasdaq OMX.[5]
Both segments of the combined BM&FBOVESPA group recently recorded increases in monthly trading volume, the company noted. Trading volume on BOVESPA's equity markets increased from 6.91 million in May 2009 to 7.04 million in June, while volume on BM&F's derivatives markets rose from 29.26 million to 39.45 million over the same period.[6] Futures contracts on interest rates were the big gainers from May to June, rising in volume by around 40 percent to hit 14.47 million.
Key Products
BM&FBOVESPA's benchmark equity index is known in Brazil as the Indice Bovespa (IBovespa)[7] but is also called the Bovespa Index by many western news sources.[8] It is made up of the the market's most liquid stocks and is based on total returns weighted by their trading volume on the BOVESPA stock exchange.
BOVESPA's Brazil Index 50 (IBrX-50) measures total return of the 50 most liquid stocks listed on BOVESPA weighted according to the market value of their outstanding shares. The IBrX-50 is intended as a benchmark index for investors and portfolio managers and is rebalanced every four months.[9]
Volumes
2009
BM&FBovespa ranked as the world's sixth-largest derivatives exchange by contract volume in 2009, according to the annual Futures Industry Association's survey of the world's leading derivatives exchanges. [10] The FIA report, published in early April 2010, notes that the number of futures and options traded on BM&FBovespa jumped over 24 percent to 920.4 million contracts. Its best performing contract was the One Day Inter-Bank Deposit Futures, which nonetheless fell 9 percent to just under 152 million to 2009.
Latest News
In March of 2011, it became known that Bolsa Mexicana de Valores (BMV), the Mexican stock exchange, was in “very advanced” talks with its Brazilian counterpart BM&FBovespa over an order-routing agreement expected to increase trading volumes between Latin America’s two largest bourses significantly.[11]
In February of 2010, BM&FBOVESPA and CME Group announced a deal to jointly develop a new trading platform that would handle trading of stocks, futures and options as well as currencies and government bonds.[12] The new platform is expected to launch in early 2011 for derivatives trading, and then equities, government bonds, and fixed income securities by the end of 2011.
In addition, BM&FBOVESPA agreed to increase its shareholder stake in CME Group to 5 percent, from 1.8 percent, with an estimated $620 million investment. Its total stake in CME Group is now $1 billion.[13][14]
BM&FBOVESPA and the Chicago-based derivatives exchange CME Group announced that in mid-June 2009 that their order-routing agreement implemented in February 2009 had traded its 2 millionth contract.[15] The agreement allows CME Group customers access to BM&FBOVESPA's products - primarily interest rate futures, commodities, equity indexes and forex - via the CME's Globex electronic trading system. As part of the agreement, CME Group took a 4.9% equity stake in BM&FBOVESPA, which in turn bought a 1.8% stake in the Chicago exchange operator.
BM&FBOVESPA called a halt to all open outcry exchanges trading on June 30, 2009 and the exchange has shifted to electronic trading of its high-volume interest rate futures contracts much more quickly than did the CME Group with similar products in 2004. Consequently, say analysts, the exchange is now increasingly attracting sophisticated automated traders and recently opened offices in London to go with other foreign outposts in New York and Shanghai.[16]
Key People
Two months after the 2008 merger that formed BM&FBOVESPA, former BM&F CEO Edemir Pinto was appointed the group's new CEO.[17] Pinto joined BM&F in 1986 and served as CEO from 1999 until May 2008 after previously serving as Derivatives Clearinghouse Officer from 1987.
- Arminio Fraga Neto, Chairman of the Board
- Marcelo Fernandez Trindade, Vice Chairman of the Board
- Edemir Pinto, CEO
- Amarílis Prado Sardenberg, Chief Clearinghouse, Depository and Risk Management Officer
- Eduardo Refinetti Guardia, Chief Financial Officer
- Cícero Augusto Vieira Neto, Chief Operating Officer
- José Antonio Gragnani, Chief Business Development Officer
- Marta Alves, Chief Products Officer
- Lucy Pamboukdjian, International Business Development Officer
- Sergio Gullo Chief Representative for Europe, the Middle East and Africa (EMEA)
References
- ↑ 2010 Annual Volume Survey. Futures Industry.com.
- ↑ 2010 Annual Report & Statistics. World Federation of Exchanges.
- ↑ Members. World Federation of Exchanges.
- ↑ São Paulo exchange raises CME stake. Financial Times.
- ↑ About BM&FBOVESPA. BM&FBOVESPA.
- ↑ BM&FBOVESPA announces June 2009 market performance. BM&FBOVESPA.
- ↑ Indice Bovespa (BVSP). WikiInvest.
- ↑ BOVESPA. Bloomberg.
- ↑ BOVESPA Indices - Brazil Index 50 (IBrX 50). BM&FBOVESPA.
- ↑ 2009 Annual Volume Survey. FIA magazine.
- ↑ BMV In Talks With Bovespa Over Routing. FT.com.
- ↑ Brazil BM&FBovespa ups CME stake on high-speed bet. Reuters.
- ↑ BM&FBovespa to Raise Stake in CME, Start Platform. Bloomberg.
- ↑ São Paulo exchange raises CME stake. Financial Times.
- ↑ CME Group and BM&FBOVESPA Surpass Two Million Contracts Traded in Order Routing Agreement. CME Group.
- ↑ BM&F Bovespa challenges global exchanges. Financial Times.
- ↑ Chief Executive Officer Edemir Pinto. BM&FBOVESPA.
