From MarketsWiki
(Redirected from BM&FBOVESPA)
Jump to navigation Jump to search
HKEX 728x90 v6.gif

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.

According to the Futures Industry Association's survey of the world's leading derivatives exchanges, B3 posted contract volume of over 8.75 billion derivatives in 2021, up 38 percent over the previous year, ranking them in second position worldwide in number of contracts traded for the year.[4]

B3 is a Primary Member of CCP Global, the global association of Central Counterparties (CCP), which represents 42 members who operate more than 60 individual CCPs across EMEA, the Americas and the Asia-Pacific region. [5]


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).[6]

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.[7]

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.[8]

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).[9]

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. [10] However, it sold its 4 percent stake in CME Group on April 7, 2016 to raise funds to buy Cetip.[11]

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.[12] 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.[13]

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.[14]

In 2023, Nasdaq and B3 announced the rollout of a new clearing platform for B3. The platform will manage clearing, counterparty risk and settlement. [15]

Key Products[edit]

B3's benchmark equity index is known in Brazil as the Indice Bovespa (IBovespa)[16] but is also called the Bovespa Index by many western news sources.[17] 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.[18]

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
2021 8,755,773,393 38.04%
2020 6,342,883,080 62.54%
2019 3,880,624,283 50.76%
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 --


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.[19] Pinto joined BM&F in 1986 and served as CEO from 1999 until May 2008 after previously serving as Derivatives Clearinghouse Officer from 1987.