BM&F Bovespa

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Definition: BM&F Bovespa


Quick Summary of BM&F Bovespa


BM&FBOVESPA is a Brazilian company, created in 2008, through the integration between the São Paulo Stock Exchange (Bolsa de Valores de São Paulo) and the Brazilian Mercantile & Futures Exchange (Bolsa de Mercadorias e Futuros).

It is the most important Brazilian institution to intermediate equity market transactions and the only securities, commodities and futures exchange in Brazil. BM&FBOVESPA further acts as a driver for the Brazilian capital markets.



Full Definition of BM&F Bovespa


BM&FBOVESPA S.A. – Securities, Commodities and Futures Exchange was created in 2008 with the integration between the Brazilian Mercantile & Futures Exchange (BM&F) and the São Paulo Stock Exchange (Bovespa).

Together, the companies have formed one of the largest exchanges in the world in terms of market value, the second largest in the Americas, and the leading exchange in Latin America.

In today’s global scenario, in which responding quickly to transformation has become a competitive asset, BM&FBOVESPA is an attractive investment option with cost-efficient trading fees.

Among its broad range of trading products, the new Exchange offers equities, securities, financial assets, indices, interest rates, agricultural commodities, and foreign exchange futures and spot contracts.

Activities

BM&FBOVESPA is much more than just a marketplace. In addition to trading equities, securities and derivatives, it also undertakes the following activities: Listing companies and funds; disseminating price quotes; launching market indices; developing systems and software; implementing technological advances, and much more. All of which effectively contribute to Brazil’s economic growth.

Opportunities are great. Challenges are even greater. But BM&FBOVESPA is capable of competing with any other exchange in the world for local and international investors. It has every bit of the credibility and transparency needed to ensure market access to a full range of investors, from individuals to international funds.

Clearinghouses

CBLC renders clearing, settlement, risk management, central depository and securities lending services. It acts as a central counterparty for the transactions carried out on the equities and corporate fixed-income securities markets, making and receiving payments, and providing safekeeping for all the securities and assets traded at the Exchange.

The Derivatives, Foreign Exchange and Securities Clearinghouses offer registration, clearing, settlement and risk management services for the transactions carried out on the derivatives, interbank US Dollar and federal government securities markets, respectively, providing efficient mechanisms to cover a default by one or more participants.

BSM

Bovespa Market Supervision (BSM) is responsible for monitoring the transactions and activities performed by market participants and clearing and/or custody agents at the CBLC. It is also responsible for managing the Investor Compensation Mechanism (MRP).

BM&F Settlement Bank

The activities performed by the BM&F Settlement Bank are restricted to the transactions executed and/or registered in the BM&FBOVESPA trading environments. In 2008 the settlement services provided by the BM&F Settlement Bank amounted to BRL3.4 million.

Brazilian Commodities Exchange

Through the Brazilian Commodities Exchange, BM&FBOVESPA enables the commercialization of agricultural products and offers services for the public sector by means of its electronic auction system and for the private sector by means of its private system for the acquisition of goods and services.

Mission Statement

As a leader in the Latin American market of equities and derivatives, BM&FBOVESPA’s mission is to act in the macroeconomic growth dynamic of the Latin American market and position, not only the Exchange, but also Brazil as an international financial hub for equities, commodities, and other financial instruments, with operational excellence and socially responsible attitudes.

History

  • 1890 – The Bolsa Livre is founded. It ¡s closed in 1891, due to the Encithamento policy.
  • 1895 – The BoLsa de Fundos Públicos de São Paulo is founded. Trading of government-Issued securities and equities were registered on huge stone blackboards.
  • 1967 – Emergence of brokerage houses and floor traders. The exchange becomes known as Bolsa de Valores de São Paulo – Bovespa.
  • 1972 – Implementation of automated trading sessions. Trading information is displayed online and in real-time. By the end of the decade, Bovespa becomes the first exchange to introduce the options market in Brazil.
  • 1990 – Bovespa begins trading through the Computer Assisted Trading System (CATS), which operates simultaneously with the open outcry trading floor.
  • 2008 – Integration of Bovespa Holding SA and BM&F SA and the creation of the Brazilian Securities, Commodities and Futures Exchange• BM&FBOVESPA SA, one of the largest exchanges in the world in terms of market value.
  • 2008 – Since August 20, 2008, it has been listed under the BVMF3 ticker in the Novo Mercado. Its equities also integrate the Ibovespa index, which holds the equities with most liquidity in Brazil.
  • 2010 – In February 2010, the Brazilian Exchange took a decisive step towards its consolidation as a global player. BM&FBOVESPA and CME Group announced that they have agreed to become Global Preferred Strategic Partners with an aim to pursue strategic investments and commercial opportunities with other international exchanges, on a shared and equal basis.
  • 2010 – BM&FBOVESPA led the creation of Brazil Investments & Business (Brasil Investimentos & Negácios) – BRAin, in a partnership with the Brazilian Financial and Capital Markets Association (ANBIMA), the Brazilian Federation of  Banks(FEBRABAN).
  • This Initiative, officially launched in March 2010, further seeks to reinforce the competitiveness within the Brazilian business environment.

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Definition Sources


Definitions for BM&F Bovespa are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 15th April, 2020 | 3 Views.