Political Risk Latin America Blog @PolRiskLatam

Brazil: a new securities exchange?

Posted in News and Articles, Political Risk by politicalrisklatam on January 10, 2011

by Jonathan Wheatley for Financial Times – Beyond Brics, January 10th, 2011.

Moves are afoot to set up a new Brazilian trading platform to rival the BM&FBovespa, the exchange that dominates trading in equities and futures in the country and has grown quickly to become the world’s fourth-largest exchange by market capitalisation.

As Jeremy Grant writes on FT Trading Room today, this would follow a recent spate of start-up exchanges around the world, which have been established to challenge incumbents that have become complacent, sluggish and overpriced.

A person involved in the fledgling Brazilian exchange – who stressed that developments were at a very early stage – told beyondbrics pricing was the core issue. “All potential investors have it in their minds that the BM&FBovespa is very expensive,” he said. “Everybody knows this.”

But it is harder to charge the BM&FBovespa with complacency or sluggishness. The exchange has grown by leaps and bounds in recent years and not only because of a surge of investor interest in Brazil. (continue reading… )



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