B3
| B3 | |
| |
| Founded | 2008 |
|---|---|
| Headquarters | São Paulo, Brazil |
| Key People | Gilson Finkelsztain, CEO |
| Products | BOVESPA Index, Brazil Index 50 |
| Website | www.b3.com.br/pt_br/ |
| Releases | Company News |
The Brazilian equities and derivatives exchange B3, formerly BM&FBOVESPA, is Latin America's largest exchange and the second largest in the western hemisphere.[1] It offers products from equities to spot commodities to interest-rate futures contracts. The exchange changed its corporate name from BM&FBOVESPA S.A. – Bolsa de Valores, Mercadorias e Futuros to B3 S.A. – Brasil, Bolsa, Balcão in June 2017. That name was created after the exchange acquired CETIP, the largest depository for private sector debt securities in Latin America, in March 2017.[2][3]
BM&FBovespa was created in 2008 by the merger of two existing exchanges, the Bolsa de Mercadorias & Futuros and Bolsa de Valores de Sao Paulo.
BM&FBovespa posted volume of over 2.5 billion derivatives contracts in 2018, according to the Futures Industry Association's survey of the world's leading derivatives exchanges, up 42 percent from 1.8 billion contracts the previous year. [4]
History[edit]
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).[5]
The exchange called a halt to all open outcry exchanges trading on June 30, 2009 and shifted to electronic trading of its high-volume interest rate futures contracts. Analysts said the move allowed the exchange to attract more sophisticated automated traders. It subsequently opened offices in London to go with other foreign outposts in New York and Shanghai.[6]
The company has continued a strategy of expanding by buying minority stakes in other Latin American exchanges. It acquired its Brazilian rival, Cetip SA, in April of 2016, making it the dominant exchange in Brazil. It also purchased minority stakes in Chile’s Bolsa de Comercio de Santiago and Mexico’s Bolsa Mexicana de Valores SAB.[7]
BM&FBovespa became the top shareholder of the Bolsa de Valores de Colombia in July of 2016, buying 9.99 percent of the Colombian exchange for 44 million reais ($13 million).[8]
The bourse has said it wants to play a role in the financial integration of Latin America.
BM&FBovespa previously had an order routing agreement with CME Group and and developed a mutli-asset class platform that allowed CME Group customers to trade at BM&F through CME Globex. [9] However, it sold its 4 percent stake in CME Group on April 7, 2016 to raise funds to buy Cetip.[10]
BM&FBovespa launched a new clearing house on August 18, 2014, after four years of developing the platform. The exchange transferred exchange-traded and over-the-counter derivatives to the new clearing house, and followed that with equities in 2015. The clearing house completed a R$1.5bn project to overhaul Brazil’s trading infrastructure.[11] The new clearinghouse includes exchange-traded and OTC derivatives; equities and corporate bonds; spot FX; and federal government bonds in a single clearinghouse and unites all four existing clearing houses. Previously all of these markets used separate clearinghouses.[12]
In September of 2016 BM&FBovespa became the first exchange to join R3's distributed ledger consortium. The exchange will be part of a collaboration with R3 and more than 60 of the world’s largest financial institutions to develop commercial applications for ledger technology in the financial services industry, including Corda, R3's shared ledger platform.[13]
In 2023, Nasdaq and B3 announced the rollout of a new clearing platform for B3. The platform will manage clearing, counterparty risk and settlement. [14]
Key Products[edit]
B3's benchmark equity index is known in Brazil as the Indice Bovespa (IBovespa)[15] but is also called the Bovespa Index by many western news sources.[16] 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.
B3's Brazil Index 50 (IBrX-50) measures total return of the 50 most liquid stocks listed on B3 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.[17]
ESG at B3[edit]
Information about B3’s corporate commitment to sustainability can be found here.
Contract Volume[edit]
| Year | Total Annual Volume* | Percent Change |
| 2018 | 2,574,073,178 | 42.26% |
| 2017 | 1,809,358,955 | 21.7% |
| 2016 | 1,487,305,788 | 9.5% |
| 2015 | 1,358,592,857 | (-)4.4% |
| 2014 | 1,417,925,815 | (-)11.6% |
| 2013 | 1,603,706,918 | (-)2.0% |
| 2012 | 1,635,957,604 | 9.0% |
| 2011 | 1,500,444,003 | 6.1% |
| 2010 | 1,413,753,671 | 54.5% |
| 2009 | 920,375,712 | -- |
2014[edit]
| Exchange | Volume | Percent Change |
| Bolsa de Volares de São Paulo | 790,094,482 | (-) 13.3% |
| Bolsa de Marcadorias & Futuros | 627,831,333 | (-) 9.4% |
| BM&FBovespa | 1,417,925,815 | (-) 11.6% |
Key People[edit]
Two months after the 2008 merger that formed BM&FBOVESPA, former BM&F CEO Edemir Pinto was appointed the group's new CEO.[18] Pinto joined BM&F in 1986 and served as CEO from 1999 until May 2008 after previously serving as Derivatives Clearinghouse Officer from 1987.
- Pedro Parente, Chairman of the Board
- Claudio Luiz da Silva Haddad, Vice President, Independent Director
- Gilson Finkelsztain, CEO
- Cícero Augusto Vieira Neto, Executive Officer of Operations, Clearing and Repository
- Luis Otavio Saliba Furtado, Executive Director of Technology and Information Security
- Daniel Sonder Executive Director of Corporate Financial
- Sergio Gullo Chief Representative for Europe, the Middle East and Africa (EMEA)
References[edit]
- ↑ About BM&FBOVESPA. BM&FBOVESPA.
- ↑ The birth of B3 - a world-class financial market infrastructure company. B3.
- ↑ BM&FBovespa and Cetip combine to form B3. Finextra.
- ↑ 2018 Annual Global Derivatives Volume Survey. Futures Industry Association.
- ↑ São Paulo exchange raises CME stake. Financial Times.
- ↑ BM&F Bovespa challenges global exchanges. Financial Times.
- ↑ BM&F Bovespa acquires 4.1% stake of Mexico bourse. MarketWatch.
- ↑ BM&FBovespa Buys Top Colombia Exchange Stake in Integration Push. Bloomberg.
- ↑ 2014 FIA Annual Global Futures and Options Volume: Gains in North America and Europe Offset Declines in Asia-Pacific. FIA.
- ↑ BM&FBovespa raises $1.25 billion from CME stake sale to buy rival. Reuters.
- ↑ BM&FBovespa to launch clearing house. The Financial Times.
- ↑ BM&FBOVESPA Clearinghouse starts operating. BM&FBOVESPA.
- ↑ BM&FBOVESPA Becomes First Exchange To Join R3 Distributed Ledger Consortium. MyInforms.com.
- ↑ Nasdaq. Nasdaq.
- ↑ Indice Bovespa (BVSP). WikiInvest.
- ↑ BOVESPA. Bloomberg.
- ↑ BOVESPA Indices - Brazil Index 50 (IBrX 50). BM&FBOVESPA.
- ↑ Chief Executive Officer Edemir Pinto. BM&FBOVESPA.